Roku (NASDAQ:ROKU) Stock Price Down 2.7% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU) shares fell 2.7% during trading on Friday . The company traded as low as $91.68 and last traded at $93.27. 2,892,735 shares were traded during trading, a decline of 20% from the average session volume of 3,629,229 shares. The stock had previously closed at $95.86.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Howdy (Roku’s ad-free tier) has added Disney movies, a content bump that can help subscriber growth and ARPU if it drives conversions from ad-supported viewers. Roku’s ad-free streaming service was already a great deal – now it’s adding Disney movies
• Positive Sentiment: Roku launched a NCAA March Madness zone — a seasonal content/engagement initiative that can boost active-use metrics and ad inventory monetization during a high-viewership period. Roku Launches NCAA March Madness Zone
• Positive Sentiment: Sell?side coverage and price-target increases remain supportive (multiple firms have raised targets and upgraded Roku in recent weeks), which can underpin investor confidence despite short-term volatility. Roku (NASDAQ:ROKU) CFO Dan Jedda Sells 15,000 Shares
• Neutral Sentiment: Roku is a named holding in thematic funds like ARKK; commentary about ARKK’s volatility and YTD weakness can amplify sector-driven flows but doesn’t change Roku’s fundamentals directly. Is the ARK Innovation ETF Finding a Floor? Tesla and Robinhood Set the Tone (ROKU)
• Neutral Sentiment: Coverage in consumer/STEM press (best?of Roku content lists, streaming deals roundups) boosts discoverability and platform engagement but is unlikely to move near-term revenue materially. The 7 Best Movies on Roku in March
• Negative Sentiment: Insider selling: CFO Dan Jedda sold 15,000 shares (mid?March), which some investors view as a negative signal even if sales are often for diversification or personal reasons. Roku (NASDAQ:ROKU) CFO Dan Jedda Sells 15,000 Shares
• Negative Sentiment: Broader streaming promotions and aggressive pricing across competitors (streaming deal roundups) increase competition for eyeballs and ad dollars, which could pressure monetization if Roku cannot convert higher engagement into higher ad rates or subscription revenue. The best streaming deals right now: Hulu, Disney+, Paramount+, and more

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Evercore restated an “outperform” rating and set a $150.00 price target on shares of Roku in a research note on Friday, February 13th. Moffett Nathanson reaffirmed a “neutral” rating and issued a $100.00 target price on shares of Roku in a research report on Friday, February 13th. Needham & Company LLC reissued a “buy” rating and issued a $110.00 price target on shares of Roku in a report on Friday, February 13th. Wall Street Zen raised shares of Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. Finally, Bank of America upped their target price 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. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $125.40.

Roku Price Performance

The stock has a market capitalization of $13.75 billion, a P/E ratio of 163.63 and a beta of 1.98. The company’s 50 day simple moving average is $96.40 and its two-hundred day simple moving average is $99.69.

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

Insider Buying and Selling at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $95.57, for a total transaction of $310,602.50. Following the sale, the insider owned 60,456 shares of the company’s stock, valued at $5,777,779.92. This represents a 5.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Christopher T. Handman sold 2,999 shares of the business’s stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $286,614.43. Following the completion of the transaction, the senior vice president directly owned 2,999 shares of the company’s stock, valued at approximately $286,614.43. This represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 213,124 shares of company stock worth $21,433,878 over the last quarter. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in Roku by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after purchasing an additional 322,858 shares during the period. AQR Capital Management LLC raised its stake in shares of Roku by 10.6% during the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after buying an additional 274,024 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after buying an additional 168,214 shares during the period. Tableaux LLC bought a new position in Roku in the second quarter valued at approximately $1,746,000. Finally, Holocene Advisors LP grew its holdings in Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after acquiring an additional 1,285,585 shares during the period. Institutional investors 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.