Roku (NASDAQ:ROKU) Stock Price Down 3.3% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 3.3% during mid-day trading on Friday following insider selling activity. The company traded as low as $91.29 and last traded at $91.65. Approximately 2,949,198 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 3,757,506 shares. The stock had previously closed at $94.80.

Specifically, CEO Anthony J. Wood sold 50,000 shares of Roku stock in a transaction dated Tuesday, March 10th. The stock was sold at an average price of $99.68, for a total transaction of $4,984,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on ROKU shares. Arete Research set a $132.00 price target on Roku and gave the company a “buy” rating in a research report on Monday, January 5th. Jefferies Financial Group upgraded shares of Roku from a “hold” rating to a “buy” rating and raised their price objective for the company from $100.00 to $135.00 in a research report on Thursday, December 11th. Bank of America boosted their price objective on shares of Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Evercore reaffirmed an “outperform” rating and set a $150.00 target price on shares of Roku in a report on Friday, February 13th. Finally, Oppenheimer increased their target price on shares of Roku from $105.00 to $120.00 and gave the stock an “outperform” rating in a research note on Friday, February 13th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $125.40.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s recent operational wins and bullish analyst notes helped drive a run-up into March — analysts have raised targets and coverage remains largely positive, supporting longer‑term growth expectations. Read More.
• Positive Sentiment: Product and engagement initiatives (new on‑platform game “Roklue” and improved Live TV search) aim to boost time‑spent and ad monetization, which can support platform revenue growth. Read More.
• Positive Sentiment: Content deals: Roku secured exclusive streaming rights to a new X Games League, which can help drive unique live content and viewer engagement on the platform. Read More.
• Positive Sentiment: Retail promotions and steep discounts on Roku TVs and projectors are widespread this month — such device promotions can expand the user base and ad reach if they translate into active accounts. Read More.
• Neutral Sentiment: Ad/measurement ecosystem update: Pixalate released DEFASED pre‑bid CTV blocklists (daily lists of apps delisted from app stores). This is an industry tool for buyers/sellers and could change ad targeting or inventory mix, but its direct impact on Roku revenue is unclear today. Read More.
• Negative Sentiment: Insider sale headline: CEO Anthony Wood’s trust sold 50,000 shares (filed as a March 10 transaction, average ~$99.68). Even if pre‑planned under a 10b5‑1, the disclosure can prompt near‑term selling pressure and headline-driven volatility. Read More.
• Negative Sentiment: Heavy historical insider selling: multiple senior insiders have only sold (no purchases) over recent months, a datapoint investors often view as a negative signal for near‑term sentiment. Read More.

Roku Trading Down 3.3%

The stock’s fifty day moving average price is $98.04 and its 200 day moving average price is $99.73. The stock has a market cap of $13.51 billion, a P/E ratio of 160.79 and a beta of 1.98.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The company had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same period in the previous year, the business earned ($0.24) earnings per share. The firm’s quarterly revenue was up 16.1% compared to the same quarter last year. On average, analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Hedge Funds Weigh In On Roku

Several institutional investors have recently modified their holdings of the company. Empowered Funds LLC grew its position in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after acquiring an additional 515 shares during the last quarter. Focus Partners Wealth purchased a new stake in shares of Roku in the 1st quarter valued at $229,000. Campbell & CO Investment Adviser LLC bought a new position in shares of Roku during the 2nd quarter valued at $256,000. Allworth Financial LP grew its holdings in shares of Roku by 196.4% during the 2nd quarter. Allworth Financial LP now owns 2,134 shares of the company’s stock valued at $188,000 after purchasing an additional 1,414 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its position in Roku by 23.3% in the 2nd quarter. PNC Financial Services Group Inc. now owns 3,893 shares of the company’s stock worth $342,000 after purchasing an additional 736 shares during the period. 86.30% of the stock is currently 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.