Roku (NASDAQ:ROKU) Stock Price Down 2% - Time to Sell?

Key Points

• Roku's stock price fell by 2% during trading, closing at $96.29, with a significant decrease in trading volume compared to the average.
• Research analysts have set new price targets for Roku, with the consensus rating now at "Moderate Buy" and an average target price of $101.33.
• Insider trading activity has increased, with significant sales of shares by CEO Anthony J. Wood and other insiders, totaling over $32 million in the last three months.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price was down 2% during trading on Friday . The company traded as low as $96.10 and last traded at $96.29. Approximately 2,364,204 shares were traded during trading, a decline of 38% from the average daily volume of 3,783,171 shares. The stock had previously closed at $98.28.

Analysts Set New Price Targets

Several research analysts recently issued reports on the stock. KeyCorp increased their price target on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Wells Fargo & Company increased their target price on Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Needham & Company LLC reissued a "buy" rating and set a $110.00 target price on shares of Roku in a research note on Wednesday, October 1st. Susquehanna increased their target price on Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a research note on Friday, August 1st. Finally, Piper Sandler increased their price objective on Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a research report on Thursday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Roku presently has a consensus rating of "Moderate Buy" and an average price target of $101.33.

Roku Trading Down 2.0%

The stock has a market capitalization of $14.19 billion, a PE ratio of -229.26, a P/E/G ratio of 11.32 and a beta of 2.13. The firm has a 50 day moving average of $96.93 and a two-hundred day moving average of $83.46.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The business had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter last year, the business posted ($0.18) earnings per share. The business's revenue for the quarter was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $100.00, for a total transaction of $2,500,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the firm's stock in a transaction on Tuesday, September 9th. The stock was sold at an average price of $100.00, for a total value of $5,052,700.00. The disclosure for this sale can be found here. In the last three months, insiders sold 328,331 shares of company stock worth $32,640,556. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Tableaux LLC purchased a new stake in Roku during the 2nd quarter worth about $1,746,000. Acadian Asset Management LLC grew its holdings in shares of Roku by 456.7% during the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after buying an additional 1,563,449 shares in the last quarter. Duquesne Family Office LLC grew its holdings in shares of Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock worth $96,723,000 after buying an additional 606,900 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Roku by 38,431.7% in the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock worth $34,470,000 after acquiring an additional 488,083 shares during the period. Finally, AQR Capital Management LLC grew its stake in Roku by 491.5% in the 1st quarter. AQR Capital Management LLC now owns 562,027 shares of the company's stock worth $38,943,000 after acquiring an additional 467,005 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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