Roku (NASDAQ:ROKU) Trading Down 2.7% on Insider Selling

Key Points

• Roku's stock price decreased by 2.7% after insider selling activities, with CEO Anthony J. Wood selling 25,000 shares for $2.5 million.
• Analysts have recently revised their price targets for Roku, with upgrades from brokers like Needham & Company and Guggenheim, giving it a moderate buy rating and an average price target of $101.33.
• Roku reported quarterly earnings that exceeded expectations, with revenues of $1.11 billion and earnings per share topping estimates by $0.23.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) was down 2.7% on Monday after an insider sold shares in the company. The stock traded as low as $98.66 and last traded at $99.05. Approximately 3,536,546 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 3,931,103 shares. The stock had previously closed at $101.78.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Thursday, September 18th. The shares were sold at an average price of $100.00, for a total transaction of $2,500,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Dan Jedda sold 3,000 shares of the business's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $94.52, for a total transaction of $283,560.00. Following the sale, the chief financial officer directly owned 83,420 shares of the company's stock, valued at approximately $7,884,858.40. The trade was a 3.47% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analysts Set New Price Targets

Several research firms have recently commented on ROKU. Wells Fargo & Company boosted their target price on shares of Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Susquehanna boosted their target price on shares of Roku from $85.00 to $110.00 and gave the stock a "positive" rating in a research report on Friday, August 1st. Piper Sandler boosted their target price on shares of Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a research report on Thursday, July 10th. Bank of America boosted their target price on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research report on Thursday, July 3rd. Finally, JPMorgan Chase & Co. boosted their target price on shares of Roku from $100.00 to $105.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Roku presently has a consensus rating of "Moderate Buy" and a consensus target price of $101.33.

Roku Trading Up 2.7%

The stock's fifty day moving average is $92.18 and its two-hundred day moving average is $79.15. The firm has a market cap of $14.98 billion, a P/E ratio of -242.12, a price-to-earnings-growth ratio of 14.25 and a beta of 2.05.

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

Hedge Funds Weigh In On Roku

A number of institutional investors have recently made changes to their positions in ROKU. Woodline Partners LP bought a new position in shares of Roku in the 4th quarter worth $1,970,000. Waverly Advisors LLC increased its holdings in shares of Roku by 8.2% in the 4th quarter. Waverly Advisors LLC now owns 3,765 shares of the company's stock worth $280,000 after buying an additional 285 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in shares of Roku by 7.8% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 527,191 shares of the company's stock worth $39,191,000 after buying an additional 37,945 shares during the last quarter. Fluent Financial LLC bought a new position in shares of Roku in the 4th quarter worth $660,000. Finally, Siemens Fonds Invest GmbH bought a new position in shares of Roku in the 4th quarter worth $1,681,000. 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.