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

Roku, Inc. (NASDAQ:ROKU) was down 1.2% during trading on Tuesday after an insider sold shares in the company. The stock traded as low as $111.14 and last traded at $113.28. Approximately 2,653,101 shares changed hands during trading, a decline of 2% from the average daily volume of 2,701,457 shares. The stock had previously closed at $114.68.

Specifically, Director Neil D. Hunt sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $108.98, for a total value of $217,960.00. Following the completion of the sale, the director directly owned 7,782 shares of the company’s stock, valued at $848,082.36. This trade represents a 20.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO Matthew C. Banks sold 729 shares of Roku stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $109.04, for a total value of $79,490.16. Following the completion of the transaction, the chief accounting officer owned 5,825 shares of the company’s stock, valued at approximately $635,158. This trade represents a 11.12% decrease in their position. The SEC filing for this sale provides additional information.

Analysts Set New Price Targets

A number of analysts recently issued reports on ROKU shares. Arete Research set a $132.00 price target on Roku and gave the stock a “buy” rating in a research report on Monday. Morgan Stanley set a $135.00 target price on shares of Roku and gave the company an “overweight” rating in a research note on Tuesday, December 16th. Raymond James Financial restated a “market perform” rating on shares of Roku in a report on Friday, October 31st. Evercore ISI reiterated a “positive” rating on shares of Roku in a report on Friday, October 31st. Finally, KeyCorp reissued an “overweight” rating and issued a $116.00 price objective on shares of Roku in a research report on Tuesday, October 28th. Twenty-three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and a consensus target price of $118.12.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku said at CES its $2.99/month streaming channel Howdy will be expanded to other platforms — a move that could grow subscription revenue and broaden Howdy’s addressable market. Read More.
• Positive Sentiment: Roku adopted iSpot’s outcomes‑based ad metric to improve ad targeting and measurement, which could boost ad yield if advertisers see better ROI. Read More.
• Positive Sentiment: An analyst upgrade from Arete to “buy” with a $132 target provides additional upside narrative for investors focused on fundamentals and earnings recovery. Read More.
• Positive Sentiment: Technical momentum: recent break above short‑term moving averages (noted as a “golden cross” signal) can attract momentum traders. Read More.
• Neutral Sentiment: Industry backdrop remains supportive: smart TVs are still the primary streaming device in U.S. homes, underpinning Roku’s platform reach but not guaranteeing near‑term ad revenue gains. Read More.
• Neutral Sentiment: Product/UX and third‑party app stories (KREX+ availability, display resolution tips) affect user experience but are unlikely to move the stock unless adoption or problems scale materially. Read More. Read More.
• Negative Sentiment: Insider selling: Director Neil D. Hunt and CAO Matthew Banks disclosed January sales (forms filed with the SEC), which some investors view as a negative signal on near‑term insider conviction. Read More. Read More.
• Negative Sentiment: Market reaction: the stock fell today as traders weighed the mixed signals — positive product/tech and analyst news have not fully offset concerns about ad‑revenue visibility and insider sales. Read More.

Roku Trading Down 2.6%

The company has a market capitalization of $16.30 billion, a PE ratio of -551.47 and a beta of 1.95. The firm’s 50-day simple moving average is $103.86 and its 200-day simple moving average is $96.88.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, October 30th. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.09. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same period last year, the company posted ($0.06) earnings per share. As a group, analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Institutional Investors Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the company. GAMMA Investing LLC increased its stake in shares of Roku by 9.5% during the third quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock valued at $112,000 after buying an additional 97 shares during the period. Cornerstone Wealth Management LLC lifted its stake in Roku by 3.8% in the third quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock worth $273,000 after acquiring an additional 100 shares during the period. Thoroughbred Financial Services LLC grew its holdings in Roku by 1.0% during the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock worth $995,000 after acquiring an additional 100 shares in the last quarter. Aviance Capital Partners LLC grew its holdings in Roku by 2.6% during the 3rd quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock worth $418,000 after acquiring an additional 106 shares in the last quarter. Finally, O Keefe Stevens Advisory Inc. increased its position in Roku by 1.8% during the 3rd quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company’s stock valued at $624,000 after purchasing an additional 113 shares during the period. 86.30% of the stock is owned by institutional investors.

About Roku

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.