Roku (NASDAQ:ROKU) Stock Price Down 1.6% Following Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 1.6% on Wednesday after an insider sold shares in the company. The company traded as low as $152.35 and last traded at $152.90. Approximately 5,518,065 shares were traded during trading, an increase of 56% from the average daily volume of 3,528,714 shares. The stock had previously closed at $155.34.

Specifically, insider Charles Collier sold 20,538 shares of Roku stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $156.99, for a total value of $3,224,260.62. Following the sale, the insider owned 22,700 shares of the company’s stock, valued at approximately $3,563,673. The trade was a 47.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew Banks sold 546 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $84,979.44. Following the transaction, the chief accounting officer directly owned 8,122 shares of the company’s stock, valued at approximately $1,264,108.08. This trade represents a 6.30% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In other Roku news, insider Mustafa Ozgen sold 3,410 shares of the business’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $530,732.40. Following the sale, the insider directly owned 25,569 shares in the company, valued at $3,979,559.16. The trade was a 11.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ROKU. UBS Group upped their price target on Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Rosenblatt Securities restated a “buy” rating and issued a $160.00 price objective on shares of Roku in a research note on Monday, August 10th. Oppenheimer downgraded shares of Roku from an “outperform” rating to a “market perform” rating in a report on Monday, June 15th. Seaport Research Partners lowered shares of Roku from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. Finally, Jefferies Financial Group downgraded shares of Roku from a “buy” rating to a “hold” rating and set a $160.00 target price for the company. in a research note on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Stock Performance

The company has a market capitalization of $23.00 billion, a P/E ratio of 66.14 and a beta of 2.05. The business has a 50 day moving average of $149.77 and a 200-day moving average of $126.78.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.08 EPS for the quarter, beating the consensus estimate of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. Roku’s revenue for the quarter was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.07 earnings per share. As a group, equities analysts forecast that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. California State Teachers Retirement System increased its position in shares of Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company’s stock worth $2,888,886,000 after purchasing an additional 20,761,653 shares during the last quarter. AQR Capital Management LLC lifted 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 valued at $258,897,000 after purchasing an additional 1,897,407 shares during the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after purchasing an additional 1,419,772 shares during the last quarter. Fred Alger Management LLC grew its stake in Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after buying an additional 1,401,664 shares in the last quarter. Finally, Norges Bank purchased a new position in Roku in the 4th quarter worth approximately $92,808,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.