Roku (NASDAQ:ROKU) Stock Price Down 2.2% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 2.2% on Tuesday after an insider sold shares in the company. The stock traded as low as $118.03 and last traded at $120.91. 3,312,746 shares changed hands during mid-day trading, an increase of 9% from the average session volume of 3,050,461 shares. The stock had previously closed at $123.57.

Specifically, insider Charles Collier sold 20,537 shares of the business’s stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $124.94, for a total transaction of $2,565,892.78. Following the transaction, the insider owned 15,200 shares of the company’s stock, valued at approximately $1,899,088. The trade was a 57.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Christopher T. Handman sold 2,999 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total transaction of $381,652.74. Following the completion of the sale, the senior vice president directly owned 5,998 shares of the company’s stock, valued at $763,305.48. This represents a 33.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other Roku news, CAO Matthew C. Banks sold 546 shares of Roku stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total transaction of $69,483.96. Following the transaction, the chief accounting officer directly owned 7,725 shares of the company’s stock, valued at $983,083.50. The trade was a 6.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analyst Ratings Changes

ROKU has been the subject of a number of recent analyst reports. Robert W. Baird raised their price target on shares of Roku from $130.00 to $160.00 and gave the stock an “outperform” rating in a report on Monday, May 11th. UBS Group set a $170.00 price objective on Roku in a research report on Thursday, May 28th. Piper Sandler restated an “overweight” rating on shares of Roku in a research report on Friday. Wells Fargo & Company increased their price target on Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Finally, Jefferies Financial Group boosted their price objective on shares of Roku from $135.00 to $140.00 and gave the company a “buy” rating in a report on Monday, April 13th. Twenty-two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Roku has a consensus rating of “Moderate Buy” and an average target price of $145.50.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is seeing heavy investor interest, with Zacks highlighting the stock as one of the more closely watched names as traders look for catalysts tied to the company’s growth and advertising potential. Article title
• Positive Sentiment: Analyst tone remains constructive overall, with Roku carrying a “Moderate Buy” consensus and several firms recently raising price targets, reinforcing expectations for continued upside if the company executes well. Article title
• Positive Sentiment: Product and promotion headlines around Roku devices and streaming bundles may be helping keep the brand visible with consumers, which can support engagement and platform adoption. Article title
• Positive Sentiment: Roku’s streaming platform and device lineup continue to attract attention through media coverage of new content and hardware offers, which underscores ongoing consumer relevance. Article title
• Neutral Sentiment: Short-interest data showed 0 shares reported, so the update does not provide a meaningful new bearish or bullish signal for the stock.
• Negative Sentiment: Insider Charles Collier sold 20,537 shares of Roku at an average price of $124.94, a move that can weigh on sentiment even though it was made under a pre-arranged 10b5-1 trading plan. Article title
• Negative Sentiment: Another report noted that Roku’s home screen now includes a permanent ad, which could frustrate users and raise concerns about ad clutter on the platform. Article title

Roku Stock Down 2.2%

The company’s 50-day moving average price is $116.01 and its 200-day moving average price is $105.41. The firm has a market cap of $17.83 billion, a price-to-earnings ratio of 90.91 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.23. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm’s quarterly revenue was up 22.4% on a year-over-year basis. During the same period in the prior year, the business earned ($0.19) EPS. On average, sell-side analysts predict that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Institutional Trading of Roku

Hedge funds have recently added to or reduced their stakes in the company. Blue Trust Inc. raised its holdings in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new position in shares of Roku during the fourth quarter worth $26,000. Bayban increased its holdings in Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after buying an additional 260 shares during the last quarter. WPG Advisers LLC acquired a new stake in Roku in the fourth quarter valued at $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new stake in Roku in the fourth quarter valued at $31,000. 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.