Roku (NASDAQ:ROKU) Trading Down 4.6% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 4.6% on Tuesday . The company traded as low as $66.52 and last traded at $66.46. Approximately 892,219 shares were traded during trading, a decline of 76% from the average daily volume of 3,673,725 shares. The stock had previously closed at $69.65.

Analysts Set New Price Targets

ROKU has been the topic of a number of recent research reports. Wedbush reaffirmed an “outperform” rating and set a $100.00 price objective on shares of Roku in a research report on Monday, February 10th. Robert W. Baird raised Roku from a “neutral” rating to an “outperform” rating and upped their price objective for the stock from $70.00 to $90.00 in a research report on Monday, November 18th. Needham & Company LLC reiterated a “buy” rating and set a $100.00 target price on shares of Roku in a research note on Tuesday, January 7th. Bank of America boosted their target price on shares of Roku from $90.00 to $120.00 and gave the stock a “buy” rating in a research note on Friday, February 14th. Finally, Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 target price for the company in a research note on Tuesday, March 4th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $96.71.

Roku Price Performance

The firm has a market cap of $9.81 billion, a price-to-earnings ratio of -75.35 and a beta of 2.12. The firm’s 50 day moving average price is $81.52 and its two-hundred day moving average price is $77.13.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.20. The business had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. On average, analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Friday, January 10th. The shares were sold at an average price of $79.77, for a total value of $1,994,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at approximately $2,116,936.26. This trade represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at approximately $583,092.16. This trade represents a 20.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 92,308 shares of company stock valued at $8,213,436 over the last ninety days. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ROKU. Geneos Wealth Management Inc. grew its position in shares of Roku by 369.9% in the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares during the last quarter. Vision Financial Markets LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $30,000. Raelipskie Partnership acquired a new stake in shares of Roku in the third quarter valued at approximately $32,000. Game Plan Financial Advisors LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $37,000. Finally, Harvest Fund Management Co. Ltd grew its position in shares of Roku by 4,091.7% in the fourth quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after purchasing an additional 491 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

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.