Roku (NASDAQ:ROKU) Trading Down 2.4% – Time to Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) were down 2.4% during trading on Thursday . The stock traded as low as $80.43 and last traded at $80.96. Approximately 1,148,463 shares were traded during trading, a decline of 74% from the average daily volume of 4,431,877 shares. The stock had previously closed at $82.94.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on the stock. UBS Group initiated coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a research note on Thursday, September 12th. JPMorgan Chase & Co. boosted their price target on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Morgan Stanley raised their price objective on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Finally, Moffett Nathanson upgraded Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a research report on Tuesday, October 1st. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $83.33.

Roku Stock Performance

The firm has a 50-day moving average price of $74.22 and a two-hundred day moving average price of $66.00.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm’s revenue was up 16.5% compared to the same quarter last year. During the same quarter last year, the firm posted ($2.33) EPS. On average, equities research analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In related news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $75.33, for a total value of $75,330.00. Following the completion of the sale, the chief financial officer now directly owns 54,267 shares of the company’s stock, valued at $4,087,933.11. This represents a 1.81 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 88,550 shares of company stock valued at $6,621,873. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently modified their holdings of the business. FMR LLC raised its stake in Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after buying an additional 244,793 shares in the last quarter. ARK Investment Management LLC raised its position in shares of Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after acquiring an additional 159,785 shares in the last quarter. Holocene Advisors LP bought a new position in shares of Roku in the 3rd quarter worth $129,015,000. Westfield Capital Management Co. LP lifted its stake in shares of Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in Roku by 3.2% during the third quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock valued at $71,373,000 after purchasing an additional 30,038 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.