Roku (NASDAQ:ROKU) Trading Down 3.9% on Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) fell 3.9% during trading on Tuesday following insider selling activity. The company traded as low as $113.46 and last traded at $114.11. 2,800,191 shares changed hands during mid-day trading, a decline of 15% from the average session volume of 3,301,928 shares. The stock had previously closed at $118.73.

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

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on ROKU shares. Jefferies Financial Group upped their price objective on Roku from $135.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. Wedbush boosted their price target on Roku from $130.00 to $140.00 and gave the stock an “outperform” rating in a report on Friday, February 13th. Rosenblatt Securities upgraded Roku from a “neutral” rating to a “buy” rating and upped their price target for the stock from $106.00 to $118.00 in a research note on Friday, February 13th. Moffett Nathanson reaffirmed a “neutral” rating and set a $100.00 price objective on shares of Roku in a report on Friday, February 13th. Finally, Citigroup reiterated a “market outperform” rating on shares of Roku in a research report on Monday, March 2nd. Twenty-one investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $128.83.

Roku News Roundup

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 Price Performance

The company has a market capitalization of $16.95 billion, a PE ratio of 207.61 and a beta of 2.00. The business has a 50-day moving average of $97.95 and a 200 day moving average of $100.26.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The company had revenue of $1.39 billion during the quarter, compared to analyst estimates of $1.35 billion. During the same period in the prior year, the company earned ($0.24) earnings per share. The firm’s revenue was up 16.1% on a year-over-year basis. As a group, research analysts anticipate that Roku, Inc. will post 2.1 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of ROKU. Empowered Funds LLC raised its stake in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after purchasing an additional 515 shares in the last quarter. Focus Partners Wealth bought a new stake in shares of Roku in the 1st quarter worth about $229,000. EverSource Wealth Advisors LLC increased its holdings in shares of Roku by 145.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after buying an additional 826 shares during the last quarter. First Trust Advisors LP raised its position 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 valued at $6,221,000 after buying an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new stake in shares of Roku during the 2nd quarter valued at about $326,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.