Roku (NASDAQ:ROKU) Stock Price Down 3.5% - Should You Sell?

Key Points

• Roku's stock price fell by 3.5% on Tuesday, trading as low as $89.55, with significantly reduced trading volume compared to its average.
• Analyst ratings for Roku show a mix of upgrades and downgrades, with an average rating of "Moderate Buy" and a consensus target price of $98.96.
• Insider transactions indicate increased selling activity, with key insiders significantly reducing their holdings in the company over the last quarter.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price dropped 3.5% on Tuesday . The stock traded as low as $89.55 and last traded at $89.09. Approximately 1,039,968 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 3,995,691 shares. The stock had previously closed at $92.33.

Analyst Ratings Changes

Several equities research analysts have commented on the company. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Evercore ISI decreased their price target on Roku from $105.00 to $80.00 and set an "in-line" rating for the company in a research note on Friday, May 2nd. KeyCorp increased their target price on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Guggenheim raised their price target on Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Susquehanna lifted 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. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Roku has an average rating of "Moderate Buy" and a consensus target price of $98.96.

Roku Stock Down 3.4%

The stock has a fifty day simple moving average of $86.44 and a 200-day simple moving average of $77.38. The stock has a market cap of $13.14 billion, a P/E ratio of -212.50, a PEG ratio of 12.64 and a beta of 2.05.

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, beating the consensus estimate 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 the consensus estimate of $1.07 billion. During the same period in the previous year, the company posted ($0.18) EPS. The firm's quarterly 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. Sell-side analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In related news, insider Charles Collier sold 212,559 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $20,193,105.00. Following the transaction, the insider directly owned 200 shares of the company's stock, valued at approximately $19,000. This represents a 99.91% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 3,360 shares of the stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the completion of the transaction, the chief accounting officer directly owned 5,195 shares of the company's stock, valued at approximately $441,834.75. The trade was a 39.28% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 337,233 shares of company stock worth $30,423,181 over the last quarter. Insiders own 13.98% of the company's stock.

Institutional Trading of Roku

Hedge funds have recently made changes to their positions in the company. Garde Capital Inc. acquired a new position in Roku during the first quarter valued at approximately $25,000. Banque Transatlantique SA bought a new position in shares of Roku in the first quarter valued at approximately $28,000. Beaird Harris Wealth Management LLC acquired a new position in shares of Roku during the first quarter valued at about $30,000. Golden State Wealth Management LLC increased its position in shares of Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after purchasing an additional 247 shares in the last quarter. Finally, Princeton Global Asset Management LLC acquired a new position in Roku during the 1st quarter valued at about $35,000. Institutional investors and hedge funds own 86.30% of the company's stock.

About Roku

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.