Roku, Inc. (NASDAQ:ROKU – Get Free Report)’s stock price fell 1.5% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $124.55 and last traded at $125.68. 2,551,186 shares were traded during trading, a decline of 21% from the average session volume of 3,231,777 shares. The stock had previously closed at $127.63.
Specifically, CEO Anthony J. Wood sold 75,000 shares of Roku stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $128.79, for a total transaction of $9,659,250.00. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Analysts Set New Price Targets
A number of brokerages have recently weighed in on ROKU. Stifel Nicolaus set a $160.00 target price on shares of Roku in a research note on Monday, March 2nd. UBS Group reaffirmed an “outperform” rating and set a $145.00 target price on shares of Roku in a research note on Friday, May 1st. Robert W. Baird lifted their target price on shares of Roku from $130.00 to $160.00 and gave the company an “outperform” rating in a research note on Monday. Morgan Stanley reaffirmed an “overweight” rating and set a $150.00 target price on shares of Roku in a research note on Friday, May 1st. Finally, Guggenheim boosted their price objective on shares of Roku from $130.00 to $140.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. Twenty-one investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $143.42.
Key Stories Impacting Roku
Here are the key news stories impacting Roku this week:
- Positive Sentiment: Jefferies said Roku has a credible path to beat its full-year guidance, citing political advertising, higher World Cup viewership, and improving ad fill rates. The firm sees upside to about 25% year-over-year platform revenue growth in fiscal 2026, above Roku’s current guidance of roughly 21%. Article Title
- Positive Sentiment: Roku’s latest earnings beat expectations, with EPS of $0.57 versus the $0.34 estimate and revenue of $1.25 billion topping forecasts. Revenue also rose 22.4% year over year, reinforcing the view that the business is still growing strongly.
- Positive Sentiment: Analyst sentiment remains favorable, with multiple firms raising price targets after earnings and the broader consensus rating still sitting at Moderate Buy.
- Neutral Sentiment: Roku was also highlighted in “trending stock” coverage from Zacks, which mainly suggests increased investor interest rather than a clear new fundamental catalyst. Article Title
- Negative Sentiment: CEO Anthony Wood sold 75,000 shares in a pre-arranged Rule 10b5-1 transaction, which can weigh on sentiment even though the sale was planned in advance. Article Title
Roku Price Performance
The firm’s 50 day moving average is $106.50 and its 200 day moving average is $102.74. The firm has a market cap of $18.28 billion, a P/E ratio of 93.25 and a beta of 2.04.
Roku (NASDAQ:ROKU – Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS 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 for the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the previous year, the firm posted ($0.19) earnings per share. Roku’s quarterly revenue was up 22.4% on a year-over-year basis. As a group, analysts expect that Roku, Inc. will post 2.41 EPS for the current year.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently made changes to their positions in the company. Weiss Asset Management LP bought a new position in shares of Roku in the first quarter worth approximately $447,000. OMERS ADMINISTRATION Corp lifted its stake in shares of Roku by 62.8% in the first quarter. OMERS ADMINISTRATION Corp now owns 26,439 shares of the company’s stock worth $2,502,000 after buying an additional 10,200 shares in the last quarter. Alua Capital Management LP bought a new position in shares of Roku in the first quarter worth approximately $44,869,000. Entropy Technologies LP lifted its stake in shares of Roku by 56.3% in the first quarter. Entropy Technologies LP now owns 29,103 shares of the company’s stock worth $2,754,000 after buying an additional 10,488 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund lifted its stake in shares of Roku by 25.7% in the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 42,000 shares of the company’s stock worth $3,974,000 after buying an additional 8,600 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.
About Roku
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.
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