Roku (NASDAQ:ROKU) Stock Price Down 6.6% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 6.6% during mid-day trading on Thursday following insider selling activity. The company traded as low as $82.72 and last traded at $86.05. 6,307,124 shares were traded during mid-day trading, an increase of 101% from the average session volume of 3,138,920 shares. The stock had previously closed at $92.13.

Specifically, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $96.48, for a total transaction of $192,960.00. Following the completion of the sale, the director directly owned 7,782 shares of the company’s stock, valued at approximately $750,807.36. This represents a 20.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink.

Analyst Ratings Changes

Several research analysts recently commented on ROKU shares. Wedbush boosted their price objective on shares of Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a research note on Thursday, December 11th. Piper Sandler raised Roku from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $88.00 to $135.00 in a research report on Monday, November 3rd. JPMorgan Chase & Co. increased their price objective on Roku from $115.00 to $125.00 and gave the company an “overweight” rating in a report on Friday, December 12th. Benchmark restated a “buy” rating on shares of Roku in a research note on Wednesday. Finally, Rosenblatt Securities upped their target price on Roku from $101.00 to $106.00 and gave the company a “neutral” rating in a research report on Friday, October 31st. Twenty-three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and an average target price of $118.72.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Wedbush reiterates bullish view and $130 price target ahead of Roku’s Q4 report, highlighting “profitable growth drivers” and keeping Roku on its Best Ideas List — supports upside expectations into earnings. Roku set to report Q4 results amid expanding platform revenue
• Positive Sentiment: Roku has quietly added free channels and rolled out a major free upgrade to users, expanding content/engagement without incremental content spend — this can raise viewing hours and ad inventory if engagement follows. Roku quietly rolls out major free upgrade for its users
• Positive Sentiment: Heavy device promotions ahead of the Super Bowl (steep discounts on Streaming Stick and Roku TVs) should drive short-term hardware sales and new activations, increasing addressable ad impressions even if hardware ASPs decline. Roku Streaming Stick 2025 Falls 47% Ahead of the Super Bowl
• Neutral Sentiment: Roku is testing a home-screen refresh and rolling UX updates — product improvements can help engagement but impact on near-term revenue is uncertain until adoption metrics are reported. Your Roku home screen could look very different soon
• Negative Sentiment: Director Neil D. Hunt sold 2,000 shares (~20% reduction in his holdings) in an early-February filing; insider sales can weigh on sentiment even if they are for diversification. Insider Selling: Roku Director Sells 2,000 Shares
• Negative Sentiment: Competitive feature gap: a new Amazon Fire TV feature is being reported as ahead of Roku on some functionality, highlighting execution/feature risk vs. a deep-pocketed competitor. This powerful feature finally puts Amazon’s Fire TV Sticks ahead of Roku

Roku Price Performance

The stock has a fifty day moving average of $104.79 and a 200 day moving average of $98.95. The stock has a market cap of $12.68 billion, a price-to-earnings ratio of -429.23 and a beta of 1.99.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently made changes to their positions in the business. West Tower Group LLC boosted its stake in Roku by 128.6% during the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock worth $703,000 after purchasing an additional 4,500 shares during the last quarter. CWM LLC boosted its position in Roku by 345.4% during the third quarter. CWM LLC now owns 84,010 shares of the company’s stock worth $8,412,000 after acquiring an additional 65,150 shares during the last quarter. Accurate Wealth Management LLC purchased a new stake in Roku during the 3rd quarter valued at about $1,115,000. Monetta Financial Services Inc. grew its stake in Roku by 50.0% during the 2nd quarter. Monetta Financial Services Inc. now owns 15,000 shares of the company’s stock valued at $1,318,000 after acquiring an additional 5,000 shares in the last quarter. Finally, AGF Management Ltd. acquired a new stake in Roku in the 3rd quarter valued at about $15,023,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.