Roku (NASDAQ:ROKU) Shares Down 1.5% After Insider Selling

Roku, Inc. (NASDAQ:ROKU) fell 1.5% during trading on Tuesday following insider selling activity. The company traded as low as $81.63 and last traded at $82.23. 620,950 shares were traded during mid-day trading, a decline of 86% from the average session volume of 4,378,192 shares. The stock had previously closed at $83.44.

Specifically, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $82.73, for a total value of $82,730.00. Following the sale, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. This trade represents a 1.53 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total value of $2,066,000.00. Following the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of recent analyst reports. Jefferies Financial Group cut their price objective on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. JPMorgan Chase & Co. upped 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 shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Loop Capital boosted their target price on Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Finally, Wells Fargo & Company increased their price target on Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a research note on Thursday, October 31st. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Price Performance

The stock has a market capitalization of $11.39 billion, a P/E ratio of -65.36 and a beta of 2.06. The stock’s fifty day moving average is $75.26 and its 200-day moving average is $67.48.

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

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raelipskie Partnership acquired a new stake in shares of Roku in the third quarter valued at about $32,000. Future Financial Wealth Managment LLC bought a new stake in Roku during the 3rd quarter valued at approximately $43,000. GS Investments Inc. grew its holdings in Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after buying an additional 147 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Roku by 123.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the period. Finally, Cedar Wealth Management LLC acquired a new position in shares of Roku during the second quarter worth approximately $48,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.