Roku (NASDAQ:ROKU) Stock Price Down 2.9% - Time to Sell?

Key Points

• Roku's stock price fell 2.9% to $101.83 with a trading volume significantly below the average, indicating possible investor concerns.
• Multiple analysts revised their price targets for Roku, with estimates ranging from $75.00 to $116.00 and a consensus rating of "Moderate Buy."
• CEO Anthony J. Wood and CFO Dan Jedda sold shares recently, suggesting insider movements that may reflect their outlook on the company's performance.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares dropped 2.9% during mid-day trading on Tuesday . The stock traded as low as $101.10 and last traded at $101.83. Approximately 2,465,933 shares traded hands during trading, a decline of 36% from the average daily volume of 3,875,485 shares. The stock had previously closed at $104.84.

Analysts Set New Price Targets

ROKU has been the subject of a number of research analyst reports. Loop Capital upgraded Roku from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $80.00 to $100.00 in a report on Tuesday, June 17th. Rosenblatt Securities raised their price target on shares of Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Wedbush restated an "outperform" rating and set a $100.00 price objective on shares of Roku in a research report on Monday, July 28th. Susquehanna boosted their target price on Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, August 1st. Finally, KeyCorp upped their price target on shares of Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Stock Down 2.9%

The stock has a market cap of $15.00 billion, a PE ratio of -242.45, a PEG ratio of 14.54 and a beta of 2.13. The business's 50-day simple moving average is $94.21 and its 200-day simple moving average is $81.27.

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

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction dated 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 legal filing with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 3,000 shares of the business's stock in a transaction on Monday, September 15th. The stock was sold at an average price of $94.52, for a total transaction of $283,560.00. Following the completion of the sale, the chief financial officer owned 83,420 shares in the company, valued at approximately $7,884,858.40. The trade was a 3.47% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 529,986 shares of company stock valued at $51,523,263. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently made changes to their positions in ROKU. Vanguard Group Inc. lifted its stake in shares of Roku by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock worth $1,114,077,000 after acquiring an additional 172,221 shares during the last quarter. Acadian Asset Management LLC raised its stake in shares of Roku by 41.2% during the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock valued at $236,545,000 after acquiring an additional 785,864 shares in the last quarter. Tableaux LLC purchased a new stake in shares of Roku in the second quarter valued at approximately $1,746,000. Jacobs Levy Equity Management Inc. lifted its holdings in shares of Roku by 21.9% in the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company's stock worth $111,372,000 after buying an additional 284,323 shares during the period. Finally, Duquesne Family Office LLC grew its position in shares of Roku by 123.0% during the 2nd 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. 86.30% of the stock is owned by hedge funds and other institutional investors.

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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