Roku (NASDAQ:ROKU) Shares Down 2.7% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 2.7% during trading on Friday . The company traded as low as $91.68 and last traded at $93.27. 2,892,735 shares changed hands during mid-day trading, a decline of 20% from the average session volume of 3,629,229 shares. The stock had previously closed at $95.86.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Needham & Company LLC restated a “buy” rating and issued a $110.00 price target on shares of Roku in a research note on Friday, February 13th. Bank of America increased their target price on Roku from $115.00 to $140.00 and gave the company a “buy” rating in a report on Monday, January 12th. Evercore reissued an “outperform” rating and issued a $150.00 target price on shares of Roku in a research report on Friday, February 13th. Wells Fargo & Company boosted their price target on Roku from $116.00 to $137.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. Finally, Moffett Nathanson reaffirmed a “neutral” rating and set a $100.00 price target on shares of Roku in a research report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $125.40.

Roku Stock Performance

The stock has a market cap of $13.75 billion, a P/E ratio of 163.63 and a beta of 1.98. The business’s 50-day moving average price is $96.76 and its 200-day moving average price is $99.69.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The company had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.35 billion. During the same period last year, the firm earned ($0.24) EPS. Roku’s revenue for the quarter was up 16.1% compared to the same quarter last year. As a group, equities research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In other news, SVP Christopher T. Handman sold 2,999 shares of Roku stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $286,614.43. Following the transaction, the senior vice president directly owned 2,999 shares of the company’s stock, valued at $286,614.43. The trade was a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total value of $192,960.00. Following the transaction, the director owned 7,782 shares of the company’s stock, valued at approximately $750,807.36. This trade represents a 20.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 213,124 shares of company stock valued at $21,433,878. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently modified their holdings of ROKU. Blue Trust Inc. lifted its stake in shares of Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares in the last quarter. Aventura Private Wealth LLC purchased a new stake in Roku in the 4th quarter worth $26,000. Westfuller Advisors LLC purchased a new stake in Roku in the 3rd quarter worth $30,000. WPG Advisers LLC bought a new stake in Roku during the fourth quarter valued at about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new stake in Roku during the fourth quarter valued at about $31,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

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.