Roku (NASDAQ:ROKU) Shares Down 3.3% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s share price fell 3.3% on Wednesday . The company traded as low as $116.53 and last traded at $116.94. 2,339,312 shares were traded during mid-day trading, a decline of 23% from the average session volume of 3,043,875 shares. The stock had previously closed at $120.91.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to benefit from visibility around its consumer brand, with multiple retailers and media outlets highlighting Roku TVs, streaming sticks, and promotional bundles, which may support device demand and platform engagement. Article Title
• Positive Sentiment: Investor attention around Roku remains elevated, and the company’s recent strong quarterly results and upbeat analyst targets continue to support a constructive long-term outlook. Article Title
• Neutral Sentiment: Roku was noted as seeing increased short-interest activity, but the reported figures were zero, so this does not currently signal a meaningful bearish change in positioning.
• Neutral Sentiment: Roku-related promotions and special programming, including a Roku-exclusive sports special, add brand awareness but are unlikely to move the stock by themselves. Article Title
• Negative Sentiment: Insider Charles Collier sold another large block of Roku shares, which is the most direct near-term negative catalyst in the news flow. Article Title

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on ROKU shares. Pivotal Research restated a “buy” rating and set a $160.00 price target (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Rosenblatt Securities increased their price target on shares of Roku from $118.00 to $150.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Citizens Jmp reaffirmed a “market outperform” rating and set a $170.00 price objective on shares of Roku in a research report on Thursday, May 28th. Zacks Research cut shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 14th. Finally, Moffett Nathanson reiterated a “neutral” rating and set a $100.00 target price on shares of Roku in a report on Friday, February 13th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat.com, Roku has a consensus rating of “Moderate Buy” and a consensus target price of $145.50.

Roku Trading Down 3.3%

The company’s 50 day moving average is $116.68 and its 200 day moving average is $105.60. The stock has a market capitalization of $17.24 billion, a price-to-earnings ratio of 87.93 and a beta of 2.06.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period last year, the firm posted ($0.19) EPS. Roku’s revenue for the quarter was up 22.4% on a year-over-year basis. Analysts anticipate that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, insider Gilbert Fuchsberg sold 9,593 shares of the firm’s stock in a transaction on Friday, May 1st. The shares were sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the transaction, the insider directly owned 50,863 shares of the company’s stock, valued at approximately $6,384,323.76. This trade represents a 15.87% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 205,821 shares of Roku stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the sale, the insider directly owned 11,131 shares in the company, valued at approximately $1,168,755. The trade was a 94.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 667,168 shares of company stock valued at $75,218,573. Company insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. raised its position in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares during the last quarter. Aventura Private Wealth LLC acquired a new stake in Roku in the 4th quarter worth about $26,000. Bayban grew 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 purchasing an additional 260 shares during the period. WPG Advisers LLC purchased a new stake in Roku in the fourth quarter valued at approximately $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new stake in Roku during the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Company Profile

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.