Roku CEO Anthony Wood sells $2.51 million in stock

Anthony J. Wood, CEO and Chairman of Roku , Inc. (NASDAQ:ROKU), recently sold 25,000 shares of the company’s Class A Common Stock, according to an SEC filing. The shares were sold on February 14 at an average price of $100.40, totaling approximately $2.51 million. This transaction was conducted under Mr. Wood’s 10b5-1 trading plan. The sale comes as Roku’s stock has shown remarkable momentum, with a 69% surge over the past six months and trading near its 52-week high of $104.96.

The filing also detailed a conversion of 25,000 shares of Class B Common Stock into Class A Common Stock, which did not involve any financial transaction. Following these transactions, Wood’s trust, the Wood 2017 Revocable Trust, holds 26,538 shares of Class A Common Stock. Additionally, other trusts and direct holdings associated with Wood maintain various amounts of Roku shares, including the Wood 2020 Irrevocable Trust and multiple annuity trusts. According to InvestingPro data, Roku maintains a strong financial position with a current ratio of 2.62 and more cash than debt on its balance sheet.

Investors often scrutinize such insider transactions for insights into executive sentiment about the company’s future prospects. While the stock currently trades at a high EBITDA multiple, InvestingPro analysis reveals 13 additional key insights about Roku’s valuation and growth prospects, available exclusively to subscribers.

In other recent news, Roku Inc. has seen a flurry of positive attention from several analyst firms. Benchmark analysts raised their price target on Roku from $100 to $130, citing the company’s impressive 25% year-over-year growth in Platform revenue in the last quarter of 2024. They also noted the company’s EBITDA guidance of $350 million for the year, which aligns closely with investor expectations.

Morgan Stanley (NYSE:MS), on the other hand, increased its price target for Roku to $75 from $67, while maintaining an Underweight rating. The firm acknowledged Roku’s successful execution of growth initiatives but expressed caution about financial challenges ahead.

Needham analysts raised the price target for Roku shares to $120 from the previous $100, highlighting the company’s substantial increase in its installed base and robust financial health. They were particularly impressed with Roku’s guidance, which anticipates free cash flow to exceed EBITDA in the fiscal year 2025.

Meanwhile, Susquehanna raised its price target on Roku shares to $125 from $80, while maintaining a Negative rating. Despite the Negative rating, the firm acknowledged Roku’s potential for growth in the burgeoning connected TV (CTV) advertising market.

Lastly, Wolfe Research increased the price target for Roku shares to $108 from the previous $93, maintaining an Outperform rating on the stock. The firm highlighted Roku’s impressive platform revenue growth and positive operating profit guidance for 2026. These are recent developments that investors should consider.

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