Roku (NASDAQ:ROKU) Stock Price Down 3.9% Following Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 3.9% on Tuesday after an insider sold shares in the company. The stock traded as low as $113.46 and last traded at $114.11. Approximately 2,800,191 shares traded hands during mid-day trading, a decline of 15% from the average daily volume of 3,301,928 shares. The stock had previously closed at $118.73.

Specifically, insider Charles Collier sold 205,807 shares of the business’s stock in a transaction on Friday, April 17th. The shares were sold at an average price of $115.00, for a total transaction of $23,667,805.00. Following the completion of the sale, the insider directly owned 7,700 shares of the company’s stock, valued at approximately $885,500. The trade was a 96.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the company’s stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $107.00, for a total value of $749,000.00. Following the completion of the sale, the chief financial officer owned 78,115 shares of the company’s stock, valued at $8,358,305. This represents a 8.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, insider Charles Collier sold 3,431 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $110.17, for a total transaction of $377,993.27. Following the transaction, the insider owned 7,700 shares of the company’s stock, valued at approximately $848,309. This represents a 30.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

A number of research firms recently weighed in on ROKU. Guggenheim upped their price objective on shares of Roku from $115.00 to $130.00 and gave the stock a “buy” rating in a research note on Wednesday. KeyCorp upped their price objective on shares of Roku from $128.00 to $130.00 and gave the stock an “overweight” rating in a research note on Friday, February 13th. Stifel Nicolaus set a $160.00 price target on shares of Roku in a research report on Monday, March 2nd. Moffett Nathanson restated a “neutral” rating and issued a $100.00 price target on shares of Roku in a report on Friday, February 13th. Finally, Evercore reaffirmed an “outperform” rating and issued a $150.00 price objective on shares of Roku in a research report on Friday, February 13th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $128.83.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Guggenheim raised its price target to $130 and kept a Buy rating after Roku said its platform crossed 100 million active streaming households — a key growth milestone that supports higher ad and platform revenue expectations. Guggenheim Raises Roku Price Target to $130
• Positive Sentiment: Parks Associates data show Roku OS controls ~28% of connected?TV usage in U.S. broadband households (largest share), reinforcing the company’s ad?reach advantage and pricing power for platform monetization. Parks Associates: Roku (28%) and Samsung (23%) Dominate Connected TV
• Positive Sentiment: Peacock’s ad?free tier is now available on Roku Premium subscriptions, a content/distribution pact that can lift ARPU and subscription options for Roku’s platform business. Peacock’s Ad-Free Tier Now Available On Roku
• Neutral Sentiment: Retail promotions: Roku hardware (TVs, Streambar, Streaming Stick Plus) is on heavy discount in Amazon deals — good for device adoption but may compress near?term hardware margins. Roku’s 55-Inch Smart TV Drops to Its Lowest Price
• Neutral Sentiment: Customer support/content items (e.g., quick device fixes, new free channels) are operational positives that marginally help retention and engagement but are unlikely to move the stock alone. Don’t replace your slow Roku yet — try this 10-second fix first
• Negative Sentiment: A senior insider (Charles Collier) executed large sales (~$23.7M) under a Rule 10b5?1 plan, reducing his holdings materially; while pre?arranged plans are common, heavy insider selling can spook short?term traders. Roku Insider Sells $23,667,805.00 in Stock
• Negative Sentiment: Short?term profit?taking and technical pullback after a multi?week rally: several outlets note Roku is trading off versus the broader market as traders trim positions following the run?up. Roku (ROKU) Sees a More Significant Dip Than Broader Market
• Negative Sentiment: Some editorial criticism (e.g., Roku City game described as an ad) could raise user experience concerns if engagement outcomes disappoint, potentially limiting the upside to ad growth. The new Roku City game is just a giant ad

Roku Stock Performance

The company’s fifty day moving average is $97.95 and its two-hundred day moving average is $100.26. The company has a market cap of $16.95 billion, a price-to-earnings ratio of 201.69 and a beta of 2.00.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, February 12th. The company reported $0.53 earnings per share 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 for the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter in the prior year, the company earned ($0.24) EPS. Roku’s quarterly revenue was up 16.1% on a year-over-year basis. On average, sell-side analysts anticipate that Roku, Inc. will post 2.1 EPS for the current fiscal year.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently bought and sold shares of the business. Empowered Funds LLC grew its stake in shares of Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after purchasing an additional 515 shares during the period. Focus Partners Wealth acquired a new stake in shares of Roku during the 1st quarter worth approximately $229,000. EverSource Wealth Advisors LLC grew its stake in shares of Roku by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after purchasing an additional 826 shares during the period. First Trust Advisors LP grew its stake in shares of Roku by 231.0% during the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after purchasing an additional 49,399 shares during the period. Finally, Brown Advisory Inc. acquired a new stake in shares of Roku during the 2nd quarter worth approximately $326,000. 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.