Roku (NASDAQ:ROKU) Trading Down 1.5% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) shares were down 1.5% during trading on Tuesday . The company traded as low as $126.97 and last traded at $127.1220. Approximately 1,901,217 shares were traded during mid-day trading, a decline of 7% from the average daily volume of 2,036,718 shares. The stock had previously closed at $129.03.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Wall Street’s average brokerage recommendation remains bullish on Roku, which is helping support the stock as investors look for confirmation that analysts still see upside in the streaming platform. Is It Worth Investing in Roku (ROKU) Based on Wall Street’s Bullish Views?
• Positive Sentiment: Roku added more than 20 free live TV channels and launched new Soccer Zone coverage ahead of the 2026 World Cup, moves that could increase engagement and strengthen its advertising-supported ecosystem. Roku just added over 20 new free live TV channels
• Positive Sentiment: Roku CFO Dan Jedda is scheduled to speak at Evercore ISI’s Global TMT Conference, giving management another chance to reinforce the company’s growth story and answer investor questions. Roku CFO to Participate in Fireside Chat Hosted by Evercore ISI
• Neutral Sentiment: Some coverage is simply highlighting Roku’s recent strong run and comparing it with other long-term value ideas, which may attract attention but does not directly change fundamentals. Forget Roku: This Stock Is a Far Better Value for Long-Term Investors
• Negative Sentiment: Roku also drew an article questioning whether it is still the best investment versus alternatives, which can temper enthusiasm even if the company’s recent momentum remains intact. Is It Worth Investing in Roku (ROKU) Based on Wall Street’s Bullish Views?

Analysts Set New Price Targets

A number of research analysts have recently commented on ROKU shares. Moffett Nathanson reissued a “neutral” rating and issued a $100.00 price objective on shares of Roku in a research report on Friday, February 13th. Rosenblatt Securities lifted their price objective on shares of Roku from $118.00 to $150.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Zacks Research downgraded shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, April 14th. Guggenheim lifted their price objective on shares of Roku from $130.00 to $140.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Finally, Robert W. Baird lifted their price objective on shares of Roku from $130.00 to $160.00 and gave the company an “outperform” rating in a research report on Monday, May 11th. Twenty-two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $144.46.

Roku Stock Performance

The firm has a market cap of $18.74 billion, a P/E ratio of 95.58 and a beta of 2.04. The firm’s fifty day moving average is $113.01 and its 200 day moving average is $104.54.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share 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 business had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter in the previous year, the company earned ($0.19) EPS. The business’s revenue was up 22.4% on a year-over-year basis. As a group, equities research analysts forecast that Roku, Inc. will post 2.41 EPS for the current year.

Insiders Place Their Bets

In other Roku news, CFO Dan Jedda sold 7,000 shares of Roku stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $122.56, for a total value of $857,920.00. Following the completion of the sale, the chief financial officer owned 71,115 shares in the company, valued at $8,715,854.40. The trade was a 8.96% decrease in their position. The sale was disclosed in a document filed 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. Also, CAO Matthew C. Banks sold 725 shares of Roku stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $91,002.00. Following the completion of the sale, the chief accounting officer owned 6,222 shares of the company’s stock, valued at $780,985.44. This trade represents a 10.44% 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 ninety days, insiders have sold 681,358 shares of company stock worth $75,642,627. 13.45% of the stock is currently owned by insiders.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Blue Trust Inc. raised its stake in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new stake in Roku in the 4th quarter worth about $26,000. Bayban raised its stake in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after purchasing an additional 260 shares in the last quarter. WPG Advisers LLC acquired a new stake in Roku in the 4th quarter worth about $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new position in shares of Roku in the 4th quarter valued at 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.