Roku (NASDAQ:ROKU) Trading Down 1.5% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 1.5% during trading on Tuesday . The stock traded as low as $126.97 and last traded at $127.1220. 1,901,217 shares were traded during trading, a decline of 7% from the average session volume of 2,036,718 shares. The stock had previously closed at $129.03.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku was highlighted in a Seeking Alpha piece that argued Wall Street may still be underestimating the company, noting that Roku has reached 100 million households worldwide and is expanding its live sports offering with FOX One ahead of major World Cup coverage. 100 Million Households Later And Wall Street Still Underestimates Roku
• Neutral Sentiment: Recent articles also pointed to broadly bullish analyst sentiment on Roku, though the pieces were more reflective than event-driven and did not cite a new rating change or catalyst. Is It Worth Investing in Roku (ROKU) Based on Wall Street’s Bullish Views?
• Neutral Sentiment: Zacks also published a similar analysis questioning whether Wall Street’s bullish views should drive investment decisions, but the article itself did not announce any new company-specific development. Is It Worth Investing in Roku (ROKU) Based on Wall Street’s Bullish Views?
• Negative Sentiment: Multiple Roku insiders sold shares in pre-arranged 10b5-1 transactions, including SVP Christopher T. Handman, CAO Matthew C. Banks, Director Neil D. Hunt, insider Gilbert Fuchsberg, and insider Charles Collier. While the sales were tied to equity vesting and tax withholding, the breadth of selling can still weigh on investor sentiment. SEC Filing: Christopher T. Handman

Wall Street Analyst Weigh In

Several analysts have commented on the stock. Oppenheimer increased their price target on shares of Roku from $105.00 to $120.00 and gave the company an “outperform” rating in a research report on Friday, February 13th. Wedbush increased their price target on shares of Roku from $140.00 to $155.00 and gave the company an “outperform” rating in a research report on Friday, May 1st. Citizens Jmp reissued a “market outperform” rating and set a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. Stifel Nicolaus set a $160.00 price target on shares of Roku in a research report on Monday, March 2nd. Finally, UBS Group set a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $144.46.

Roku Trading Down 3.9%

The stock has a market capitalization of $18.02 billion, a PE ratio of 91.88 and a beta of 2.06. The company’s 50-day moving average is $114.17 and its 200 day moving average is $104.85.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating the consensus estimate of $0.34 by $0.23. The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. Roku’s revenue was up 22.4% on a year-over-year basis. During the same period last year, the firm posted ($0.19) EPS. Sell-side analysts forecast that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, CAO Matthew C. Banks sold 546 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total transaction of $69,483.96. Following the sale, the chief accounting officer owned 7,725 shares in the company, valued at approximately $983,083.50. The trade was a 6.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Gilbert Fuchsberg sold 4,376 shares of the firm’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total transaction of $556,889.76. Following the transaction, the insider directly owned 51,099 shares of the company’s stock, valued at $6,502,858.74. This represents a 7.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 696,631 shares of company stock worth $77,636,680. 13.45% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently bought and sold shares of ROKU. Empowered Funds LLC raised its position in Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after buying an additional 515 shares during the last quarter. Focus Partners Wealth purchased a new position in Roku during the 1st quarter worth approximately $229,000. EverSource Wealth Advisors LLC raised its position in Roku by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $123,000 after buying an additional 826 shares during the last quarter. First Trust Advisors LP raised its position in Roku by 231.0% during the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after buying an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in Roku during the 2nd quarter worth approximately $326,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.