Roku (NASDAQ:ROKU) Shares Down 14.6% – Here’s What Happened

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 14.6% during trading on Thursday . The stock traded as low as $60.70 and last traded at $60.98. 2,450,382 shares traded hands during trading, a decline of 34% from the average session volume of 3,706,637 shares. The stock had previously closed at $71.42.

Analysts Set New Price Targets

ROKU has been the subject of a number of research reports. Benchmark increased their target price on Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a report on Friday, February 14th. Wells Fargo & Company upgraded shares of Roku from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $74.00 to $129.00 in a research note on Friday, February 14th. Rosenblatt Securities reaffirmed a “neutral” rating and set a $86.00 price target on shares of Roku in a report on Thursday, February 13th. Pivotal Research upgraded Roku from a “hold” rating to a “buy” rating and increased their price objective for the stock from $65.00 to $125.00 in a research report on Friday, February 14th. Finally, Jefferies Financial Group raised Roku from an “underperform” rating to a “hold” rating and increased their price target for the stock from $55.00 to $100.00 in a research report on Thursday, February 20th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating, seventeen have assigned a buy rating and three have given a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $96.55.

Roku Price Performance

The company has a fifty day moving average of $80.64 and a two-hundred day moving average of $77.62. The stock has a market capitalization of $8.79 billion, a P/E ratio of -67.71 and a beta of 2.17.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. As a group, equities research analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Matthew C. Banks sold 1,906 shares of the firm’s stock in a transaction on 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 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the transaction, the chief financial officer now directly owns 63,555 shares in the company, valued at approximately $4,905,174.90. This represents a 1.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 97,905 shares of company stock valued at $8,632,306. 13.98% of the stock is currently owned by insiders.

Institutional Trading of Roku

Hedge funds have recently made changes to their positions in the company. Paloma Partners Management Co purchased a new position in shares of Roku in the 3rd quarter worth about $394,000. Benjamin Edwards Inc. grew its holdings in shares of Roku by 13,111.3% in the third quarter. Benjamin Edwards Inc. now owns 59,451 shares of the company’s stock worth $4,438,000 after acquiring an additional 59,001 shares during the period. Investment Management Corp of Ontario purchased a new stake in Roku in the third quarter worth about $318,000. Integrated Wealth Concepts LLC raised its holdings in Roku by 26.9% during the third quarter. Integrated Wealth Concepts LLC now owns 20,890 shares of the company’s stock valued at $1,560,000 after acquiring an additional 4,427 shares during the period. Finally, IHT Wealth Management LLC boosted its position in shares of Roku by 762.3% during the third quarter. IHT Wealth Management LLC now owns 29,819 shares of the company’s stock worth $2,226,000 after acquiring an additional 26,361 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

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.