Roku (NASDAQ:ROKU) Stock Price Down 5.6% After Insider Selling

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 5.6% during trading on Thursday after an insider sold shares in the company. The company traded as low as $78.53 and last traded at $82.93. Approximately 10,814,627 shares changed hands during mid-day trading, an increase of 213% from the average daily volume of 3,452,884 shares. The stock had previously closed at $87.89.

Specifically, CEO Anthony J. Wood sold 50,000 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $90.79, for a total transaction of $4,539,500.00. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on ROKU shares. Benchmark restated a “buy” rating on shares of Roku in a research note on Wednesday, February 4th. Wells Fargo & Company reiterated an “overweight” rating on shares of Roku in a research report on Monday, January 5th. Jefferies Financial Group raised shares of Roku from a “hold” rating to a “buy” rating and lifted their price target for the company from $100.00 to $135.00 in a report on Thursday, December 11th. Susquehanna reaffirmed a “positive” rating and set a $130.00 price target on shares of Roku in a report on Friday, October 31st. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Roku in a report on Thursday, January 22nd. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Roku has an average rating of “Moderate Buy” and an average price target of $118.72.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q4 EPS and revenue beat street expectations — Roku reported $0.53 EPS vs. a $0.28 consensus and revenue of $1.39B vs. $1.35B expected, indicating improving profitability and top‑line strength. Roku Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raising FY revenue guide above consensus — Roku issued FY‑2026 revenue guidance (~$5.5B) above Street estimates and flagged a rebound in the digital ad market, supporting upside to ad‑revenue growth assumptions. Roku forecasts annual revenue above estimates
• Positive Sentiment: Product/monetization initiatives — Management signaled plans for premium subscription bundles and highlighted ad‑growth drivers (including an Amazon partnership), which could diversify ARPU and margins over time. Roku Breezes Past Wall Street’s Q4 Earnings Outlook, Signals Plan For Premium Subscription Bundles
• Neutral Sentiment: Analyst sentiment shifted positive — Zacks upgraded Roku to a “Strong Buy”, reflecting improving earnings momentum; upgrades can support sentiment but don’t guarantee continued price gains. Roku Upgraded to Strong Buy
• Neutral Sentiment: Investor materials and call — Roku released its Q4 and full‑year 2025 results and hosted a webcast (useful for detail but neutral until guidance/remarks change view). Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider selling — CEO Anthony Wood disclosed a sale of 50,000 shares (~$4.54M), which can prompt cautious investor reaction and add to near‑term selling pressure. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability/forward estimates still mixed — Despite the beat, Roku reported a small negative net margin and negative ROE; some sell‑side models still expect negative FY EPS, keeping valuation and path‑to‑consistent profitability in focus. MarketBeat Roku Summary

Roku Stock Down 5.6%

The stock has a market capitalization of $12.25 billion, a P/E ratio of -414.63 and a beta of 1.99. The firm’s 50 day simple moving average is $104.38 and its two-hundred day simple moving average is $98.99.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. As a group, equities research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. AQR Capital Management LLC boosted its stake in Roku by 275.5% in the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after acquiring an additional 1,897,407 shares during the last quarter. Tableaux LLC purchased a new stake in shares of Roku in the second quarter worth $1,746,000. Holocene Advisors LP grew its holdings in shares of Roku by 352.3% during the third 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. Norges Bank bought a new stake in Roku during the fourth quarter valued at approximately $92,808,000. Finally, Acadian Asset Management LLC boosted its holdings in shares of Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after purchasing an additional 785,864 shares in the last quarter. 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.