Roku (NASDAQ:ROKU) Trading Down 2.3% on Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s share price was down 2.3% on Wednesday after an insider sold shares in the company. The stock traded as low as $92.21 and last traded at $93.10. Approximately 2,308,095 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 3,791,423 shares. The stock had previously closed at $95.27.

Specifically, CFO Dan Jedda sold 3,000 shares of the business’s stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $99.09, for a total value of $297,270.00. Following the transaction, the chief financial officer owned 77,420 shares in the company, valued at $7,671,547.80. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Charles Collier sold 14,361 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The stock was sold at an average price of $94.99, for a total value of $1,364,151.39. Following the sale, the insider directly owned 200 shares of the company’s stock, valued at $18,998. This trade represents a 98.63% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In related news, CAO Matthew C. Banks sold 719 shares of the business’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $95.09, for a total value of $68,369.71. Following the completion of the sale, the chief accounting officer owned 7,285 shares of the company’s stock, valued at approximately $692,730.65. The trade was a 8.98% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

Wall Street Analyst Weigh In

ROKU has been the subject of several recent research reports. Evercore ISI reissued a “positive” rating on shares of Roku in a research report on Friday, October 31st. Morgan Stanley restated an “underweight” rating on shares of Roku in a report on Friday, October 31st. Piper Sandler raised shares of Roku from a “neutral” rating to an “overweight” rating and lifted their price objective for the company from $88.00 to $135.00 in a research note on Monday, November 3rd. Benchmark reissued a “buy” rating on shares of Roku in a research report on Monday, October 27th. Finally, JPMorgan Chase & Co. raised their target price on Roku from $105.00 to $115.00 and gave the company an “overweight” rating in a report on Friday, October 31st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, six have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $111.14.

Roku Stock Performance

The firm has a market capitalization of $13.79 billion, a price-to-earnings ratio of -466.58 and a beta of 2.18. The business’s 50 day moving average is $99.40 and its 200-day moving average is $89.29.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business’s quarterly revenue was up 14.0% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.06) earnings per share. Roku has set its Q4 2025 guidance at EPS. Equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC increased its position in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after acquiring an additional 1,897,407 shares during the period. Tableaux LLC acquired a new stake in Roku in the 2nd quarter worth $1,746,000. Acadian Asset Management LLC increased its holdings in shares of Roku by 456.7% during the 1st quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company’s stock worth $134,222,000 after purchasing an additional 1,563,449 shares during the period. Holocene Advisors LP raised its position in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after buying an additional 1,285,585 shares during the last quarter. Finally, Duquesne Family Office LLC raised its position in shares of Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock valued at $96,723,000 after buying an additional 606,900 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.