Roku (NASDAQ:ROKU) Shares Down 3.9% After Insider Selling

Roku, Inc. (NASDAQ:ROKU) traded down 3.9% on Wednesday after an insider sold shares in the company. The company traded as low as $119.49 and last traded at $122.20. 2,355,785 shares changed hands during trading, a decline of 23% from the average session volume of 3,062,911 shares. The stock had previously closed at $127.12.

Specifically, SVP Christopher T. Handman sold 2,999 shares of Roku stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total transaction of $381,652.74. Following the sale, the senior vice president owned 5,998 shares of the company’s stock, valued at approximately $763,305.48. This trade represents a 33.33% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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. Also, CAO Matthew C. Banks sold 546 shares of Roku stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total transaction of $69,483.96. Following the sale, the chief accounting officer owned 7,725 shares in the company, valued at approximately $983,083.50. This trade represents a 6.60% 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 news, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $129.09, for a total transaction of $258,180.00. Following the sale, the director directly owned 7,782 shares in the company, valued at approximately $1,004,578.38. The trade was a 20.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ROKU. Jefferies Financial Group boosted their price target on Roku from $135.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Oppenheimer boosted their price target on shares of Roku from $105.00 to $120.00 and gave the company an “outperform” rating in a research report on Friday, February 13th. UBS Group set a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. Stifel Nicolaus set a $160.00 price target on shares of Roku in a research report on Monday, March 2nd. Finally, Piper Sandler restated an “overweight” rating on shares of Roku in a research report on Friday. Twenty-two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $145.29.

Roku Stock Down 2.7%

The company’s fifty day moving average is $114.77 and its two-hundred day moving average is $105.03. The firm has a market capitalization of $18.02 billion, a price-to-earnings ratio of 91.93 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.The company’s quarterly revenue was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.19) earnings per share. On average, equities research analysts expect that Roku, Inc. will post 2.41 EPS for the current year.

Institutional Investors Weigh In On Roku

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. increased its position in shares of Roku by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock worth $1,301,557,000 after purchasing an additional 322,858 shares during the last quarter. AQR Capital Management LLC raised its stake in shares of Roku by 10.6% during the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after purchasing an additional 274,024 shares in the last quarter. Geode Capital Management LLC raised its stake in shares of Roku by 7.3% during the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after purchasing an additional 168,214 shares in the last quarter. Arrowstreet Capital Limited Partnership raised its stake in shares of Roku by 229.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after purchasing an additional 1,419,772 shares in the last quarter. Finally, Holocene Advisors LP raised its stake in shares of Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Institutional investors and hedge funds 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.