Roku (NASDAQ:ROKU) Shares Down 6.6% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 6.6% during mid-day trading on Thursday following insider selling activity. 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 business’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $96.48, for a total transaction of $192,960.00. Following the completion of the sale, the director owned 7,782 shares in the company, valued at approximately $750,807.36. The trade was a 20.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on ROKU shares. Bank of America raised their target price on shares of Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Evercore ISI reiterated a “positive” rating on shares of Roku in a research note on Friday, October 31st. Morgan Stanley set a $135.00 price target on Roku and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Zacks Research lowered shares of Roku from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 30th. Finally, Arete Research set a $132.00 target price on shares of Roku and gave the company a “buy” rating in a research note on Monday, January 5th. Twenty-two research 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’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus 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 Stock Performance

The firm has a market capitalization of $12.71 billion, a P/E ratio of -430.23 and a beta of 1.99. The stock has a fifty day moving average price of $105.20 and a two-hundred day moving average price of $99.08.

Hedge Funds Weigh In On Roku

Large investors have recently bought and sold shares of the business. Qsemble Capital Management LP acquired a new stake in Roku in the fourth quarter worth $3,894,000. AlphaCore Capital LLC acquired a new stake in Roku in the fourth quarter worth about $256,000. DNB Asset Management AS bought a new stake in shares of Roku in the 4th quarter worth $209,000. ANTIPODES PARTNERS Ltd lifted its stake in Roku by 75.9% during the fourth quarter. ANTIPODES PARTNERS Ltd now owns 13,801 shares of the company’s stock valued at $1,497,000 after purchasing an additional 5,957 shares during the last quarter. Finally, Convergence Investment Partners LLC grew its position in Roku by 91.0% in the fourth quarter. Convergence Investment Partners LLC now owns 47,527 shares of the company’s stock worth $5,156,000 after buying an additional 22,640 shares during 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.