Roku Insiders Get First Chance to Sell Since IPO as Shares Soar

(Bloomberg) -- As Roku Inc. shares rally, keep an eye on the calendar: Tuesday presents the first chance for directors, executive officers and some other large holders to sell their stakes in the video-streaming pioneer.

Six months after going public, Roku is trading at more than double its listing price, adding to those gains with a 7.9 percent advance on Monday. It’s the best-performing initial public offering to raise at least $250 million over the past year, according to Bloomberg data.

But a risk looms this week. The lockup expiration may create a short-term technical challenge for the stock, Oppenheimer analyst Jason Helfstein cautioned in a March 20 note. And selling activity has been picking up. Shares are down 32 percent since Feb. 21, when Roku’s first-quarter revenue forecast missed analyst estimates.

Roku Insiders Get First Chance to Sell Since IPO as Shares Soar

Still, it’s not all bad news. Roku bulls see upside in the growing popularity of streamed content and the shares trade at a steep discount to Netflix Inc., Needham analyst Laura Martin wrote in a note Monday.

Also on Tuesday, Roku Chief Financial Officer Steve Louden will be discussing the competitive landscape and drivers of the business, among other topics, in a conference call with Aliya Capital.

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