Roku (NASDAQ:ROKU) Trading Down 1.4% Following Insider Selling

Key Points

• Roku shares fell 1.4% after mid-day trading on Wednesday, with the stock last changing hands at $139.25 versus a prior close of $141.21.
• Recent insider selling pressured sentiment, including a 20,538-share sale by Charles Collier and smaller sales by CAO Matthew C. Banks and Director Neil D. Hunt, all executed under pre-arranged 10b5-1 plans.
• Wall Street remains cautious on Roku: several firms recently downgraded the stock, and analysts now have a consensus Hold rating with an average price target of $153.71.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price was down 1.4% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $139.19 and last traded at $139.25. 3,703,338 shares were traded during mid-day trading, a decline of 5% from the average session volume of 3,882,380 shares. The stock had previously closed at $141.21.

Specifically, insider Charles Collier sold 20,538 shares of Roku stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $142.51, for a total value of $2,926,870.38. Following the sale, the insider directly owned 15,200 shares of the company's stock, valued at approximately $2,166,152. The trade was a 57.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 554 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $138.88, for a total value of $76,939.52. Following the completion of the sale, the chief accounting officer owned 7,171 shares in the company, valued at $995,908.48. This represents a 7.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $140.65, for a total transaction of $281,300.00. Following the completion of the transaction, the director directly owned 9,629 shares of the company's stock, valued at approximately $1,354,318.85. This represents a 17.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

A number of research firms have issued reports on ROKU. Oppenheimer downgraded Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Wolfe Research downgraded Roku from an "outperform" rating to a "peer perform" rating in a research report on Tuesday, June 16th. JPMorgan Chase & Co. restated a "neutral" rating and issued a $160.00 price target (up from $150.00) on shares of Roku in a research report on Tuesday, June 16th. Robert W. Baird reaffirmed a "neutral" rating and set a $160.00 price target on shares of Roku in a research note on Monday, June 15th. Finally, Citizens Jmp lowered shares of Roku from a "market outperform" rating to a "hold" rating in a research report on Tuesday, June 16th. Eleven analysts have rated the stock with a Buy rating and sixteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $153.71.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is drawing attention for adding six free channels, including popular reality TV content, and for other product updates that may support engagement and ad-supported viewing on the platform. Roku Adds Six Free Channels, Including Love Island and More
• Positive Sentiment: Articles highlighting Roku TV features and home-screen changes suggest the company is improving the user experience and promoting more free content, which could help strengthen platform stickiness. Roku is finally changing its home screen for the better
• Neutral Sentiment: Media coverage about how to watch the FIFA World Cup on a Roku TV and other consumer-facing stories may raise brand awareness, but they are not material business catalysts by themselves. How to watch FIFA World Cup 2026 soccer with a Roku TV
• Negative Sentiment: Insider Charles Collier sold 20,538 shares of Roku in a pre-arranged 10b5-1 transaction, which can weigh on sentiment even if it was not necessarily a discretionary bearish signal. Roku NASDAQ: ROKU Insider Sells 20,538 Shares

Roku Trading Down 1.4%

The firm has a market capitalization of $20.53 billion, a P/E ratio of 104.70 and a beta of 2.01. The firm has a 50 day moving average price of $129.29 and a 200-day moving average price of $110.78.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the previous year, the company posted ($0.19) EPS. The company's revenue for the quarter was up 22.4% compared to the same quarter last year. Research analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. FNY Investment Advisers LLC bought a new stake in shares of Roku in the 2nd quarter worth about $414,000. Elevation Wealth Partners LLC grew its holdings in Roku by 208.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock valued at $44,000 after purchasing an additional 215 shares during the last quarter. Apella Capital LLC bought a new position in Roku during the 2nd quarter valued at about $940,000. 55 North Private Wealth LLC purchased a new stake in Roku in the 2nd quarter worth about $210,000. Finally, GAMMA Investing LLC raised its position in Roku by 42.2% in the 2nd quarter. GAMMA Investing LLC now owns 2,379 shares of the company's stock worth $329,000 after purchasing an additional 706 shares during the period. Institutional investors own 86.30% of the company's stock.

Roku Company Profile

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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