Roku (NASDAQ:ROKU) Trading Down 1.9% on Insider Selling

Roku, Inc. (NASDAQ:ROKU) shares fell 1.9% during trading on Monday following insider selling activity. The stock traded as low as $139.64 and last traded at $140.90. 27,024,642 shares traded hands during mid-day trading, an increase of 705% from the average session volume of 3,356,796 shares. The stock had previously closed at $143.66.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $130.00, for a total transaction of $3,250,000.00. The transaction was disclosed in a document filed 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. Also, insider Mustafa Ozgen sold 10,194 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $144.00, for a total value of $1,467,936.00. Following the transaction, the insider directly owned 19,185 shares of the company’s stock, valued at approximately $2,762,640. This trade represents a 34.70% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Roku news, Director Mai Fyfield sold 832 shares of Roku stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $119.64, for a total value of $99,540.48. Following the completion of the sale, the director owned 5,389 shares of the company’s stock, valued at approximately $644,739.96. This trade represents a 13.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. KeyCorp downgraded Roku from an “overweight” rating to a “sector weight” rating in a research report on Monday. Robert W. Baird reiterated a “neutral” rating and set a $160.00 target price on shares of Roku in a research report on Monday. Citizens Jmp lifted their target price on Roku from $170.00 to $175.00 and gave the company a “market outperform” rating in a research report on Monday. Wells Fargo & Company lifted their target price on Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a research report on Friday, May 1st. Finally, Morgan Stanley lifted their target price on Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Eighteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat.com, Roku presently has an average rating of “Moderate Buy” and a consensus target price of $149.25.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox agreed to buy Roku for about $22 billion, paying $160 per share in cash and stock. The deal gives Roku shareholders a major takeover premium and explains the stock’s surge. Reuters: Fox to buy Roku in $22 billion deal
• Positive Sentiment: Multiple reports say the acquisition could create a larger streaming and TV-viewership platform by combining Fox’s content with Roku’s connected-TV operating system and ad network, which supports the strategic case for the deal. CNBC: Fox to buy streaming device maker Roku for $22 billion
• Neutral Sentiment: Analysts and commentary note that the takeover premium may be viewed as modest by some shareholders, which could limit additional upside unless a competing bidder emerges or deal terms change. Barron’s: Roku Stock Rises. Why $22 Billion Fox Sale May Disappoint.
• Negative Sentiment: Law firms have launched shareholder investigations into whether Roku obtained a fair price in the transaction, creating potential legal overhang and deal uncertainty. PR Newswire: Ademi LLP investigation
• Negative Sentiment: Another shareholder alert from Monteverde & Associates is also probing the sale to Fox, reinforcing concerns that investors may challenge the merger terms. PR Newswire: Monteverde & Associates investigation

Roku Price Performance

The company has a 50-day moving average price of $118.73 and a 200 day moving average price of $106.32. The firm has a market capitalization of $20.77 billion, a PE ratio of 105.94 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the business earned ($0.19) earnings per share. The business’s revenue was up 22.4% on a year-over-year basis. As a group, research analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current year.

Institutional Investors Weigh In On Roku

Several large investors have recently made changes to their positions in ROKU. Blue Trust Inc. increased its holdings in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after purchasing an additional 204 shares during the last quarter. Aventura Private Wealth LLC bought a new stake in shares of Roku in the fourth quarter worth about $26,000. Bayban increased its holdings in shares of Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after purchasing an additional 260 shares during the last quarter. WPG Advisers LLC bought a new stake in shares of Roku in the fourth quarter worth about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new stake in shares of Roku in the fourth quarter worth about $31,000. 86.30% of the stock is owned by 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.