Roku (NASDAQ:ROKU) Trading Down 1.2% After Insider Selling

Key Points

• Roku's stock fell 1.2% to $94.21 after insider selling, with approximately 1.97 million shares traded—down 48% from average daily volume.
• CFO Dan Jedda sold 3,000 shares for $287,460, while CEO Anthony J. Wood sold 25,000 shares valued at $2.35 million, indicating a decrease in their holdings.
• Analysts have varying ratings on Roku, with a consensus price target of $101.33 and an overall rating of "Moderate Buy."

Roku, Inc. (NASDAQ:ROKU - Get Free Report) dropped 1.2% on Friday after an insider sold shares in the company. The stock traded as low as $93.33 and last traded at $94.21. Approximately 1,970,909 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 3,820,887 shares. The stock had previously closed at $95.33.

Specifically, CFO Dan Jedda sold 3,000 shares of the firm's stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $95.82, for a total value of $287,460.00. Following the sale, the chief financial officer directly owned 80,420 shares of the company's stock, valued at approximately $7,705,844.40. This trade represents a 3.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of Roku 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 disclosure for this sale can be found here.

Analysts Set New Price Targets

Several research firms recently issued reports on ROKU. JMP Securities reissued a "market outperform" rating and issued a $145.00 target price on shares of Roku in a research report on Thursday, October 2nd. Piper Sandler lifted their price target on shares of Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, July 10th. Needham & Company LLC reissued a "buy" rating and set a $110.00 price objective on shares of Roku in a research note on Wednesday, October 1st. Guggenheim upped their price objective on Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Finally, UBS Group increased their target price on Roku from $72.00 to $95.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.33.

Roku Trading Down 1.2%

The firm has a 50-day moving average price of $95.79 and a 200 day moving average price of $82.31. The company has a market cap of $13.88 billion, a price-to-earnings ratio of -224.31, a price-to-earnings-growth ratio of 11.62 and a beta of 2.13.

Roku (NASDAQ:ROKU - Get Free Report) last issued its 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 firm had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter last year, the company posted ($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. Research analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Institutional Trading of Roku

Several hedge funds have recently made changes to their positions in ROKU. Garde Capital Inc. acquired a new stake in Roku in the first quarter worth $25,000. Beaird Harris Wealth Management LLC bought a new position in shares of Roku during the first quarter worth about $30,000. Banque Transatlantique SA acquired a new stake in shares of Roku in the 1st quarter worth about $28,000. Rakuten Securities Inc. lifted its position in 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. Finally, Golden State Wealth Management LLC boosted its stake in Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after purchasing an additional 247 shares during the period. 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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