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

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 6.6% during mid-day 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 were traded 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 stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total transaction of $192,960.00. Following the sale, the director directly owned 7,782 shares in the company, valued at $750,807.36. This represents a 20.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

Wall Street Analysts Forecast Growth

ROKU has been the topic of a number of analyst reports. Citigroup restated an “outperform” rating on shares of Roku in a report on Friday, January 9th. Guggenheim increased their target price on Roku from $110.00 to $115.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Wells Fargo & Company reaffirmed an “overweight” rating on shares of Roku in a report on Monday, January 5th. Zacks Research downgraded shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 30th. Finally, Pivotal Research boosted their price target on shares of Roku from $120.00 to $135.00 and gave the company a “buy” rating in a research report on Monday, November 3rd. Twenty-two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $119.29.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Large, time‑limited hardware discounts ahead of the Super Bowl should boost device activations and expand Roku’s ad reach in the near term, supporting ad‑revenue upside even if hardware ASPs fall. Kotaku: Roku Goes Big for the Super Bowl
• Positive Sentiment: Retail promotions on Roku TVs (example: a 65″ Roku TV ~24% off at Target) may increase unit sales and household penetration, supporting long‑term ad inventory growth. SI Live: 65-inch Roku TV 24% off at Target
• Positive Sentiment: Roku quietly added nine free channels to its lineup — incremental content can raise engagement and ad impressions without material cost, a positive for ad revenue scaling. Yahoo: Roku Adds 9 Free Channels
• Positive Sentiment: Wall‑street coverage remains constructive overall (consensus around “Moderate Buy” with multiple price‑target raises), which can underpin investor confidence. MarketBeat: Analyst Coverage and Targets
• Neutral Sentiment: Roku is testing a refreshed home‑screen experience — product improvements could lift engagement but are still in testing and not an immediate revenue driver. Pocket-lint: Roku Home Screen Refresh
• Neutral Sentiment: Consumer guides and accessory roundups (best remotes, warnings about discontinued devices) are routine coverage that can affect short‑term purchase behavior but are not a directional fundamental development. MSN: Best Roku Remotes
• Negative Sentiment: Insider selling — Director Neil D. Hunt sold 2,000 shares (~20% reduction in his holdings) at an average price near $96.48. While single insider sales can be benign (liquidity/diversification), the disclosure can pressure sentiment short term. InsiderTrades: Insider Selling Alert

Roku Price Performance

The company has a market cap of $12.71 billion, a PE ratio of -430.23 and a beta of 1.99. The firm has a 50-day simple moving average of $105.20 and a two-hundred day simple moving average of $99.08.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. Empowered Funds LLC grew its stake in Roku by 18.6% in the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after acquiring an additional 515 shares during the period. Focus Partners Wealth purchased a new stake in Roku in the 1st quarter valued at about $229,000. QRG Capital Management Inc. increased its stake in shares of Roku by 62.5% during the 2nd quarter. QRG Capital Management Inc. now owns 5,800 shares of the company’s stock valued at $510,000 after acquiring an additional 2,231 shares during the last quarter. Prime Capital Investment Advisors LLC increased its position in Roku by 12.5% during the second quarter. Prime Capital Investment Advisors LLC now owns 3,794 shares of the company’s stock worth $333,000 after purchasing an additional 422 shares during the last quarter. Finally, JFS Wealth Advisors LLC increased its holdings in shares of Roku by 327.1% during the 2nd quarter. JFS Wealth Advisors LLC now owns 457 shares of the company’s stock worth $40,000 after buying an additional 350 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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.