Roku (NASDAQ:ROKU) Trading Down 2.8% - Time to Sell?

Key Points

• Roku shares declined by 2.8% to $97.14, with trading volume falling 26% below the average daily volume.
• Analysts have set a range of new price targets with estimates rising, notably from $85.00 to $110.00, reflecting a predominantly positive sentiment toward the stock.
• Insider transactions indicate significant selling activity, with an insider selling 15,404 shares and another selling 25,000 shares recently.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) dropped 2.8% on Thursday . The company traded as low as $96.88 and last traded at $97.14. Approximately 2,872,180 shares were traded during trading, a decline of 26% from the average daily volume of 3,859,942 shares. The stock had previously closed at $99.93.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Susquehanna boosted their target price on Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research note on Friday, August 1st. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. JPMorgan Chase & Co. increased their price target on Roku from $100.00 to $105.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Loop Capital raised Roku from a "hold" rating to a "buy" rating and increased their price target for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. Finally, Bank of America increased their price target on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, July 3rd. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Roku currently has an average rating of "Moderate Buy" and an average target price of $101.33.

Roku Stock Down 2.8%

The company has a market cap of $14.31 billion, a P/E ratio of -231.29, a price-to-earnings-growth ratio of 13.99 and a beta of 2.13. The stock has a 50 day moving average price of $94.66 and a two-hundred day moving average price of $81.65.

Roku (NASDAQ:ROKU - Get Free Report) last announced 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 company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In related news, insider Charles Collier sold 15,404 shares of the stock in a transaction that occurred on Monday, October 6th. The stock was sold at an average price of $103.31, for a total transaction of $1,591,387.24. Following the sale, the insider owned 200 shares of the company's stock, valued at $20,662. This represents a 98.72% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $100.00, for a total value of $2,500,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 518,890 shares of company stock valued at $50,737,151 over the last ninety days. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently modified their holdings of the business. Jackson Square Capital LLC bought a new position in shares of Roku in the 3rd quarter valued at $200,000. Kessler Investment Group LLC boosted its holdings in shares of Roku by 49.5% during the 3rd quarter. Kessler Investment Group LLC now owns 114,527 shares of the company's stock valued at $11,468,000 after acquiring an additional 37,938 shares in the last quarter. Aaron Wealth Advisors LLC boosted its holdings in shares of Roku by 59.5% during the 3rd quarter. Aaron Wealth Advisors LLC now owns 4,704 shares of the company's stock valued at $471,000 after acquiring an additional 1,754 shares in the last quarter. GAMMA Investing LLC boosted its holdings in shares of Roku by 9.5% during the 3rd quarter. GAMMA Investing LLC now owns 1,114 shares of the company's stock valued at $112,000 after acquiring an additional 97 shares in the last quarter. Finally, Corient Private Wealth LLC boosted its holdings in shares of Roku by 8.2% during the 2nd quarter. Corient Private Wealth LLC now owns 13,387 shares of the company's stock valued at $1,177,000 after acquiring an additional 1,019 shares in 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.

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