Roku (NASDAQ:ROKU) Shares Down 3.1% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 3.1% during trading on Wednesday . The company traded as low as $107.39 and last traded at $107.69. 2,900,294 shares were traded during trading, a decline of 22% from the average session volume of 3,739,823 shares. The stock had previously closed at $111.09.

Wall Street Analysts Forecast Growth

Several brokerages have commented on ROKU. Needham & Company LLC reissued a “buy” rating and issued a $110.00 price target on shares of Roku in a research report on Wednesday, October 1st. Citigroup lifted their target price on Roku from $85.00 to $100.00 and gave the stock a “neutral” rating in a research report on Thursday, September 18th. Raymond James Financial reiterated a “market perform” rating on shares of Roku in a research note on Friday, October 31st. JPMorgan Chase & Co. upped their price target on Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. Finally, Wall Street Zen raised Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $116.91.

Roku Stock Down 3.1%

The business’s fifty day moving average price is $99.45 and its 200 day moving average price is $93.36. The firm has a market capitalization of $15.91 billion, a PE ratio of -538.42 and a beta of 1.98.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, October 30th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The company had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the business earned ($0.06) EPS. The firm’s revenue was up 14.0% on a year-over-year basis. As a group, sell-side analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Charles Collier sold 118,088 shares of the company’s stock in a transaction on Friday, October 31st. The shares were sold at an average price of $115.00, for a total transaction of $13,580,120.00. Following the completion of the sale, the insider directly owned 200 shares of the company’s stock, valued at approximately $23,000. This represents a 99.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 50,000 shares of the business’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $103.86, for a total value of $5,193,000.00. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 493,918 shares of company stock worth $52,340,981. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently bought and sold shares of ROKU. Banque Transatlantique SA bought a new stake in shares of Roku in the first quarter worth $28,000. Beaird Harris Wealth Management LLC bought a new position in Roku during the 1st quarter worth $30,000. Westfuller Advisors LLC bought a new position in shares of Roku during the third quarter worth about $30,000. Root Financial Partners LLC acquired a new stake in shares of Roku in the third quarter valued at approximately $33,000. Finally, Rakuten Securities Inc. increased its position in Roku by 55.6% in the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after acquiring an additional 158 shares during the period. 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.