Roku (NASDAQ:ROKU) Stock Price Down 3.3% - What's Next?

Key Points

• Roku's stock price decreased by 3.3% to $95.33, with trading volume down 31% from the average session.
• Analysts have recently upgraded their price targets for Roku, with a consensus rating of "Moderate Buy" and an average target price of $101.33.
• Insider transactions included CEO Anthony J. Wood selling 25,000 shares worth over $2.35 million, raising concerns about insider confidence.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) traded down 3.3% during mid-day trading on Thursday . The company traded as low as $93.77 and last traded at $95.33. 2,641,007 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 3,830,251 shares. The stock had previously closed at $98.58.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Susquehanna increased their price objective on shares of Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research note on Friday, August 1st. Piper Sandler increased their price objective on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. JPMorgan Chase & Co. increased their price objective on shares of Roku from $100.00 to $105.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Pivotal Research increased their price objective on shares of Roku from $100.00 to $120.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Needham & Company LLC reiterated a "buy" rating and set a $110.00 target price on shares of Roku in a research report on Wednesday, October 1st. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Roku presently has a consensus rating of "Moderate Buy" and an average target price of $101.33.

Roku Stock Performance

The stock has a market cap of $14.05 billion, a price-to-earnings ratio of -226.98, a PEG ratio of 11.13 and a beta of 2.13. The firm's 50-day simple moving average is $95.55 and its two-hundred day simple moving average is $82.14.

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

Insider Transactions at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $94.01, for a total value of $2,350,250.00. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Charles Collier sold 15,404 shares of the firm's stock in a transaction dated Monday, October 6th. The shares were sold at an average price of $103.31, for a total transaction of $1,591,387.24. Following the completion of the transaction, the insider directly owned 200 shares in the company, valued at $20,662. This trade represents a 98.72% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 537,890 shares of company stock worth $52,546,201. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. GAMMA Investing LLC boosted its stake in shares of Roku by 9.5% in the 3rd quarter. GAMMA Investing LLC now owns 1,114 shares of the company's stock valued at $112,000 after purchasing an additional 97 shares during the last quarter. O Keefe Stevens Advisory Inc. boosted its stake in shares of Roku by 1.8% in the 3rd quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company's stock valued at $624,000 after purchasing an additional 113 shares during the last quarter. DekaBank Deutsche Girozentrale boosted its stake in shares of Roku by 0.9% in the 2nd quarter. DekaBank Deutsche Girozentrale now owns 15,550 shares of the company's stock valued at $1,369,000 after purchasing an additional 142 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Roku by 7.8% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,000 shares of the company's stock valued at $200,000 after purchasing an additional 145 shares during the last quarter. Finally, Rakuten Securities Inc. boosted its stake in shares of Roku by 55.6% in the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock valued at $39,000 after purchasing an additional 158 shares during the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.