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

Roku, Inc. (NASDAQ:ROKU) shares were down 5.6% on Thursday following insider selling activity. The company traded as low as $78.53 and last traded at $82.93. 10,814,627 shares were traded during mid-day trading, an increase of 213% from the average session 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 stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $90.79, for a total value of $4,539,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ROKU. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Roku in a research note on Thursday, January 22nd. Guggenheim raised their price objective on shares of Roku from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Thursday, December 4th. Benchmark reissued a “buy” rating on shares of Roku in a research note on Wednesday, February 4th. Citigroup reaffirmed an “outperform” rating on shares of Roku in a report on Friday, January 9th. Finally, Pivotal Research lifted their target price on Roku from $120.00 to $135.00 and gave the stock a “buy” rating in a report on Monday, November 3rd. One research 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 company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $118.72.

Key Stories Impacting Roku

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’s 50-day moving average is $104.38 and its 200 day moving average is $98.99. The stock has a market capitalization of $12.25 billion, a PE ratio of -414.63 and a beta of 1.99.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping the consensus estimate 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 company had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.35 billion. As a group, equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the stock. Blue Trust Inc. lifted its stake 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 buying an additional 204 shares during the last quarter. Aventura Private Wealth LLC acquired a new stake in Roku in the 4th quarter valued at approximately $26,000. Westfuller Advisors LLC acquired a new position in shares of Roku during the third quarter worth approximately $30,000. WPG Advisers LLC bought a new position in Roku during the fourth quarter worth $31,000. Finally, Root Financial Partners LLC bought a new position in shares of Roku during the 3rd quarter worth about $33,000. 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.