Roku (NASDAQ:ROKU) Trading Down 2.1% on Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 2.1% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $96.84 and last traded at $97.01. 2,248,689 shares changed hands during trading, a decline of 38% from the average session volume of 3,647,681 shares. The stock had previously closed at $99.07.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $2,510,000.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,664,415.20. This trade represents a 48.51 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Dan Jedda sold 2,000 shares of the company’s stock in a transaction on Tuesday, February 18th. The stock was sold at an average price of $99.95, for a total value of $199,900.00. Following the sale, the chief financial officer now directly owns 56,555 shares in the company, valued at $5,652,672.25. This represents a 3.42 % decrease in their position. The disclosure for this sale can be found here. In related news, CFO Dan Jedda sold 5,000 shares of Roku stock in a transaction on Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the transaction, the chief financial officer now directly owns 58,555 shares in the company, valued at approximately $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Analyst Ratings Changes

A number of equities research analysts have issued reports on the company. Piper Sandler increased their price target on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Tuesday, January 7th. Robert W. Baird upgraded shares of Roku from a “neutral” rating to an “outperform” rating and boosted their price target for the stock from $70.00 to $90.00 in a report on Monday, November 18th. Morgan Stanley increased their price objective on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Finally, Jefferies Financial Group decreased their price objective on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Three analysts have rated the stock with a sell rating, five have assigned a hold rating, fourteen have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, Roku presently has a consensus rating of “Moderate Buy” and a consensus price target of $92.62.

Roku Trading Down 3.3 %

The business’s fifty day moving average price is $80.86 and its 200 day moving average price is $74.18. The firm has a market capitalization of $13.91 billion, a price-to-earnings ratio of -79.83 and a beta of 2.05.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.20. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. As a group, sell-side analysts forecast that Roku, Inc. will post -1.09 earnings per share for the current fiscal year.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. FMR LLC increased its holdings in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after purchasing an additional 4,613,570 shares during the period. Marshall Wace LLP increased its stake in Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after buying an additional 2,030,036 shares during the period. Holocene Advisors LP purchased a new position in Roku during the 3rd quarter worth $129,015,000. Cadian Capital Management LP acquired a new stake in shares of Roku in the 4th quarter worth $87,632,000. Finally, Jacobs Levy Equity Management Inc. lifted its stake in shares of Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock worth $96,402,000 after acquiring an additional 1,082,548 shares during the period. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.