Roku (NASDAQ:ROKU) Trading Down 3.8% - What's Next?

Key Points

• Roku's stock declined by 3.8% during trading, closing at $93.26, with trading volume down significantly to 948,454 shares, a 76% drop from its average.
• Analysts have set a consensus target price for Roku at $100.36, with predictions ranging from $75 to $145 and a general rating of "Moderate Buy."
• Insiders have sold 318,588 shares in the last three months, including significant sales by CEO Anthony J. Wood, representing a 67.65% decrease in his holdings.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) was down 3.8% during trading on Wednesday . The company traded as low as $93.80 and last traded at $93.26. Approximately 948,454 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 3,935,688 shares. The stock had previously closed at $96.99.

Analysts Set New Price Targets

A number of research firms have issued reports on ROKU. Rosenblatt Securities raised their price target on shares of Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. UBS Group boosted their target price on shares of Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. JMP Securities increased their price target on Roku from $110.00 to $145.00 and gave the stock a "market outperform" rating in a research report on Monday. Citigroup reiterated an "outperform" rating on shares of Roku in a research note on Monday, August 25th. Finally, Piper Sandler raised their target price on Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a report on Thursday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $100.36.

Roku Stock Down 2.2%

The firm has a 50-day moving average price of $90.60 and a 200 day moving average price of $78.28. The firm has a market capitalization of $13.98 billion, a PE ratio of -225.82, a price-to-earnings-growth ratio of 13.91 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, beating the consensus estimate of ($0.16) by $0.23. The company had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.Roku's revenue was up 14.7% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $89.64, for a total transaction of $2,241,000.00. Following the sale, the chief executive officer owned 11,953 shares in the company, valued at $1,071,466.92. This represents a 67.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 value of $285,768.00. Following the completion of the sale, the chief accounting officer directly owned 5,195 shares in the company, valued at $441,834.75. This represents a 39.28% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 318,588 shares of company stock worth $29,753,228. 13.98% of the stock is currently owned by insiders.

Institutional Trading of Roku

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its stake in Roku by 1.4% in the second quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock worth $1,114,077,000 after acquiring an additional 172,221 shares during the last quarter. Acadian Asset Management LLC increased its position in shares of Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock valued at $236,545,000 after purchasing an additional 785,864 shares during the last quarter. Tableaux LLC acquired a new stake in Roku in the second quarter valued at $1,746,000. Jacobs Levy Equity Management Inc. boosted its position in shares of Roku by 21.9% during the 1st quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company's stock worth $111,372,000 after acquiring an additional 284,323 shares in the last quarter. Finally, Two Sigma Investments LP increased its holdings in shares of Roku by 149.8% in the 4th quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock valued at $90,017,000 after acquiring an additional 726,077 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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.