Roku (NASDAQ:ROKU) Shares Down 2% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) dropped 2% during trading on Friday . The stock traded as low as $74.19 and last traded at $75.20. Approximately 790,534 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 3,822,249 shares. The stock had previously closed at $76.75.

Analyst Ratings Changes

ROKU has been the topic of several analyst reports. FBN Securities started coverage on shares of Roku in a research note on Friday, March 28th. They issued an “outperform” rating and a $93.00 price target on the stock. JPMorgan Chase & Co. lifted their target price on Roku from $75.00 to $85.00 and gave the company an “overweight” rating in a research note on Tuesday, June 3rd. JMP Securities reissued a “market outperform” rating and issued a $95.00 price target on shares of Roku in a research note on Monday, June 2nd. Redburn Atlantic raised Roku from a “neutral” rating to a “buy” rating and set a $100.00 price target on the stock in a report on Monday, April 7th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $88.50 price objective on shares of Roku in a report on Monday, May 12th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, Roku currently has a consensus rating of “Moderate Buy” and a consensus price target of $88.37.

Roku Price Performance

The firm’s fifty day simple moving average is $67.45 and its 200 day simple moving average is $74.83. The company has a market capitalization of $10.86 billion, a price-to-earnings ratio of -83.61 and a beta of 2.09.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping analysts’ consensus estimates of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the business posted ($0.35) EPS. The company’s revenue was up 15.8% on a year-over-year basis. Equities research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, May 29th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the sale, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This represents a 80.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the sale, the chief financial officer now directly owns 68,843 shares of the company’s stock, valued at $5,163,225. This trade represents a 1.43% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 64,737 shares of company stock worth $4,987,114. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently modified their holdings of the company. Garde Capital Inc. acquired a new position in Roku in the 1st quarter worth about $25,000. Vision Financial Markets LLC bought a new stake in shares of Roku in the 4th quarter valued at approximately $30,000. Beaird Harris Wealth Management LLC acquired a new position in Roku in the first quarter worth approximately $30,000. Banque Transatlantique SA bought a new position in Roku during the first quarter valued at approximately $28,000. Finally, Golden State Wealth Management LLC lifted its stake in Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock valued at $31,000 after acquiring an additional 247 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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.