Roku (NASDAQ:ROKU) Trading Down 6.6% on Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) were down 6.6% during trading on Thursday after an insider sold shares in the company. The company traded as low as $82.72 and last traded at $86.05. Approximately 6,307,124 shares changed hands during trading, an increase of 101% from the average daily volume of 3,138,920 shares. The stock had previously closed at $92.13.

Specifically, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total value of $192,960.00. Following the completion of the sale, the director directly owned 7,782 shares in the company, valued at approximately $750,807.36. The trade was a 20.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of research analyst reports. Guggenheim lifted their price target on shares of Roku from $110.00 to $115.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Pivotal Research lifted their target price on Roku from $120.00 to $135.00 and gave the company a “buy” rating in a report on Monday, November 3rd. Wells Fargo & Company restated an “overweight” rating on shares of Roku in a research note on Monday, January 5th. Weiss Ratings restated a “sell (d-)” rating on shares of Roku in a report on Thursday, January 22nd. Finally, Wedbush boosted their target price on Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a report on Thursday, December 11th. Twenty-two analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Roku has an average rating of “Moderate Buy” and a consensus target price of $119.29.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Deep, time-limited discounts on Roku hardware ahead of the Super Bowl should boost device activations and expand ad inventory in the near term; multiple outlets report steep markdowns on the Streaming Stick HD, Streambar SE and Roku TVs which can increase active accounts even if ASPs fall. Kotaku: Roku Goes Big for the Super Bowl Lifehacker: Streaming Stick on Sale AOL: Streaming Stick HD Sale Target Roku TV Deal
• Positive Sentiment: Roku quietly added nine free channels, broadening free content and potentially increasing viewer engagement and ad impressions. This is a low-cost way to grow ad monetization opportunities. Yahoo: Roku Adds 9 Free Channels
• Positive Sentiment: Analyst coverage remains constructive overall (consensus around “Moderate Buy” with several price-target raises), which can support investor confidence despite short-term noise. MarketBeat: Analyst Notes on Roku
• Neutral Sentiment: Roku is testing a home-screen refresh — could improve UX and ad placement long-term but is still in testing. Pocket-lint: Roku Home Screen Refresh
• Neutral Sentiment: Consumer pieces on replacement remotes and buying advice (including warnings about discontinued units) increase retail awareness but are not directional for earnings; useful for monitoring aftermarket demand. MSN: Best Roku Remotes MSN: Avoid Discontinued Roku
• Neutral Sentiment: Heightened investor search interest (Zacks) signals short-term volume/volatility risk but is not a directional fundamental change. Zacks: Investors Heavily Search Roku
• Negative Sentiment: Competitive pressure: a new Fire TV feature is being highlighted as putting Amazon’s Fire TV Sticks ahead of Roku on at least one measure — increased feature parity or superiority at Amazon could pressure Roku’s platform share and pricing power. Pocket-lint: Amazon Feature Ahead of Roku
• Negative Sentiment: Insider selling disclosed — director Neil D. Hunt sold 2,000 shares (filing shows sale around $96.48). While insider sales can be routine, the disclosure can weigh on near-term sentiment. InsiderTrades: Director Sells 2,000 Shares

Roku Trading Down 6.6%

The stock has a market capitalization of $12.71 billion, a price-to-earnings ratio of -430.23 and a beta of 1.99. The firm has a 50-day moving average of $105.01 and a 200 day moving average of $98.99.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Blue Trust Inc. grew its holdings in Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new position in Roku in the 4th quarter worth $26,000. Westfuller Advisors LLC purchased a new position in Roku in the 3rd quarter valued at about $30,000. WPG Advisers LLC purchased a new position in Roku in the 4th quarter valued at about $31,000. Finally, Root Financial Partners LLC acquired a new stake in shares of Roku during the third quarter valued at about $33,000. 86.30% of the stock is owned by institutional investors and hedge funds.

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.