Roku (NASDAQ:ROKU) Shares Down 2.6% on Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) were down 2.6% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $108.47 and last traded at $110.30. Approximately 2,770,022 shares traded hands during mid-day trading, an increase of 2% from the average daily volume of 2,719,431 shares. The stock had previously closed at $113.28.

Specifically, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $108.98, for a total transaction 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. The trade was a 20.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Matthew C. Banks sold 729 shares of the firm’s stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $109.04, for a total transaction of $79,490.16. Following the completion of the transaction, the chief accounting officer directly owned 5,825 shares in the company, valued at approximately $635,158. The trade was a 11.12% decrease in their position. The SEC filing for this sale provides additional information.

Wall Street Analysts Forecast Growth

ROKU has been the subject of several analyst reports. Susquehanna reissued a “positive” rating and issued a $130.00 price objective on shares of Roku in a research note on Friday, October 31st. Benchmark restated a “buy” rating on shares of Roku in a research note on Monday, October 27th. Raymond James Financial reaffirmed 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, Rosenblatt Securities boosted their price target on shares of Roku from $101.00 to $106.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. Twenty-three analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $118.12.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Evercore upgraded Roku to Outperform (analyst Mark Mahaney) and published a note implying roughly 31% upside, giving bullish validation from a major sell‑side shop that can attract momentum buyers. Roku Stock Can Rise Another 31%, Analyst Says
• Positive Sentiment: Arete Research raised its rating from Neutral to Buy and boosted its price target to $132 (up from $73), increasing analyst conviction and providing a higher benchmark for investors. Arete Research upgrade (coverage)
• Positive Sentiment: Product distribution: Roku CEO said the company will expand its $2.99/month ad‑free channel “Howdy” to other platforms, signaling a push to grow subscription revenue and broaden the channel’s addressable market beyond Roku devices. That distribution strategy can lift recurring revenue if uptake scales. Roku’s $3 streaming service Howdy will be coming to other platforms, CEO says
• Neutral Sentiment: Roku’s CEO discussed a new $3/month ad‑free streamer and predicted an industry milestone — a “100% AI‑generated hit movie” within three years. This highlights strategy and AI experimentation but is speculative and unlikely to meaningfully change near‑term financials. Roku CEO Talks New $3/Month Ad-Free Streamer
• Negative Sentiment: Insider selling: Roku executives (including CAO Matthew Banks) disclosed share sales in early January, reducing insider holdings — a signal some investors view as negative governance/conviction information. Matthew C. Banks Form 4
• Negative Sentiment: Market reaction: despite upgrades and product news, the stock is trading down as investors weigh near‑term ad‑revenue execution, subscription monetization cadence, and the insider sales — creating cautious positioning. Roku Trading Down After Insider Selling

Roku Price Performance

The stock’s 50 day simple moving average is $104.04 and its two-hundred day simple moving average is $96.96. The stock has a market capitalization of $16.08 billion, a PE ratio of -544.27 and a beta of 1.95.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in ROKU. Vanguard Group Inc. raised its stake in Roku by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after acquiring an additional 322,858 shares during the period. Acadian Asset Management LLC increased its stake in shares of Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after purchasing an additional 785,864 shares in the last quarter. AQR Capital Management LLC raised its position in shares of Roku by 275.5% in the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after purchasing an additional 1,897,407 shares during the period. Tableaux LLC bought a new stake in shares of Roku in the second quarter valued at approximately $1,746,000. Finally, Holocene Advisors LP lifted its stake in shares of Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after buying an additional 1,285,585 shares in the last quarter. 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.