Roku (NASDAQ:ROKU) Stock Price Down 1.5% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) traded down 1.5% during mid-day trading on Thursday . The company traded as low as $156.15 and last traded at $156.25. 2,544,066 shares were traded during mid-day trading, a decline of 29% from the average session volume of 3,571,655 shares. The stock had previously closed at $158.60.

Wall Street Analyst Weigh In

Several research firms recently commented on ROKU. Seaport Research Partners downgraded shares of Roku from a “buy” rating to a “neutral” rating in a research report on Friday, August 7th. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. Wolfe Research lowered shares of Roku from an “outperform” rating to a “peer perform” rating in a report on Tuesday, June 16th. Wedbush cut shares of Roku from an “outperform” rating to a “neutral” rating and set a $155.00 price objective on the stock. in a research note on Tuesday, June 16th. Finally, Wells Fargo & Company restated an “equal weight” rating and issued a $165.00 price objective (down from $167.00) on shares of Roku in a report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Trading Down 1.5%

The firm has a market cap of $23.19 billion, a price-to-earnings ratio of 66.77 and a beta of 2.01. The business’s 50-day simple moving average is $145.66 and its two-hundred day simple moving average is $121.55.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company’s revenue was up 21.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.07 EPS. On average, analysts forecast that Roku, Inc. will post 2.82 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, CFO Dan Jedda sold 7,000 shares of Roku stock in a transaction on Monday, June 15th. The shares were sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the completion of the transaction, the chief financial officer owned 79,963 shares of the company’s stock, valued at $11,504,276.81. This trade represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Friday, June 12th. The shares were sold at an average price of $130.00, for a total transaction of $3,250,000.00. 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. Insiders have sold 162,452 shares of company stock valued at $22,052,982 over the last three months. 13.45% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several large investors have recently added to or reduced their stakes in the business. Jefferies Financial Group Inc. bought a new position in Roku in the 4th quarter valued at about $1,345,000. Moran Wealth Management LLC bought a new stake in Roku during the 1st quarter worth approximately $2,990,000. Bank of New York Mellon Corp purchased a new stake in shares of Roku in the second quarter worth approximately $105,216,000. Contravisory Investment Management Inc. purchased a new stake in shares of Roku in the second quarter worth approximately $1,184,000. Finally, California Public Employees Retirement System lifted its holdings in shares of Roku by 14.8% in the first quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock valued at $24,674,000 after purchasing an additional 33,593 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.