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Roku Inc. (NASDAQ:ROKU), currently valued at $11.44 billion and trading at $78.30 per share, saw its CEO and Chairman Anthony J. Wood recently sell a significant portion of his holdings in the company. According to InvestingPro analysis, the company appears slightly undervalued at current levels, with strong liquidity metrics supporting its financial position. According to a recent SEC filing, Wood executed sales of Class A Common Stock totaling approximately $1.88 million over two days.
On March 20, Wood sold 4,600 shares at a weighted average price of $75.00 per share. The following day, March 21, he sold an additional 20,400 shares at a weighted average price of $75.25 per share. Both transactions were carried out under Mr. Wood’s 10b5-1 trading plan. The stock has shown significant momentum recently, posting a 15.51% return over the past week.
These sales were part of a series of transactions involving the conversion of Class B Common Stock into Class A Common Stock, which Wood then disposed of. The transactions were conducted through the Wood 2017 Revocable Trust, reflecting his indirect ownership.
While Wood continues to hold a substantial stake in Roku, these recent sales are part of his ongoing financial strategy. Investors often keep a close eye on such transactions for insights into executive confidence in the company.
In other recent news, Roku Inc. has reported significant developments that have caught the attention of analysts and investors alike. Benchmark analysts raised their price target for Roku shares from $100 to $130, citing a 25% year-over-year growth in platform revenue for the last quarter of 2024, which surpassed expectations. Jefferies also upgraded Roku’s stock rating from Underperform to Hold, increasing the price target to $100, driven by impressive platform growth and improved fill rates. Meanwhile, Citi analysts raised their price target to $103 from $70, maintaining a Neutral stance, acknowledging Roku’s strategic initiatives in enhancing fill rates and subscription revenue.
Guggenheim analyst Michael Morris maintained a buy rating on Roku, expressing confidence in the company’s momentum and platform monetization efforts, though he adjusted the price target to $100 from $115. Citizens JMP analyst Matthew Condon reiterated a Market Outperform rating with a $115 price target, highlighting Roku’s strong market position in the budget TV segment and the rising popularity of The Roku Channel. Analysts have noted the company’s strategic focus on third-party partnerships and operational discipline as key drivers for future profitability.
Roku’s management has projected continued growth into fiscal year 2025, with expectations for a 15% year-over-year increase in platform growth, excluding political advertising, according to Jefferies. The company’s EBITDA guidance of $350 million for the year is above consensus estimates, reinforcing investor confidence. Despite some concerns about valuation, the positive outlook from multiple analyst firms suggests that Roku is well-positioned for continued success in the streaming platform market.
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