Roku (NASDAQ:ROKU) Trading Down 2.3% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) dropped 2.3% during trading on Tuesday . The company traded as low as $102.57 and last traded at $106.10. Approximately 3,364,554 shares changed hands during trading, a decline of 12% from the average daily volume of 3,835,706 shares. The stock had previously closed at $108.63.

Wall Street Analyst Weigh In

A number of brokerages have weighed in on ROKU. JMP Securities reissued a “market outperform” rating and set a $145.00 price target on shares of Roku in a research note on Thursday, October 2nd. Raymond James Financial reiterated a “market perform” rating on shares of Roku in a research note on Friday. Wall Street Zen upgraded Roku from a “hold” rating to a “buy” rating in a research report on Sunday, October 19th. Susquehanna restated a “positive” rating and issued a $130.00 price target on shares of Roku in a report on Friday. Finally, JPMorgan Chase & Co. upped their price objective on shares of Roku from $105.00 to $115.00 and gave the company an “overweight” rating in a research note on Friday. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $110.18.

Roku Stock Performance

The stock has a fifty day moving average price of $98.31 and a 200-day moving average price of $86.03. The firm has a market cap of $15.63 billion, a PE ratio of -530.47, a PEG ratio of 9.21 and a beta of 2.18.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.09%. The firm had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same period in the previous year, the company posted ($0.06) earnings per share. Roku’s revenue was up 14.0% compared to the same quarter last year. Roku has set its Q4 2025 guidance at EPS. As a group, equities analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity at Roku

In related news, CFO Dan Jedda sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $95.82, for a total transaction of $287,460.00. Following the sale, the chief financial officer directly owned 80,420 shares in the company, valued at approximately $7,705,844.40. This trade represents a 3.60% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Anthony J. Wood sold 18,700 shares of the company’s stock in a transaction that occurred on Thursday, October 30th. The stock was sold at an average price of $100.00, for a total value of $1,870,000.00. The SEC filing for this sale provides additional information. In the last three months, insiders sold 349,971 shares of company stock worth $34,855,055. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Banque Transatlantique SA acquired a new stake in Roku during the 1st quarter valued at $28,000. Beaird Harris Wealth Management LLC purchased a new position in Roku in the 1st quarter valued at about $30,000. Westfuller Advisors LLC purchased a new position in Roku in the 3rd quarter valued at about $30,000. Root Financial Partners LLC acquired a new stake in shares of Roku during the third quarter valued at about $33,000. Finally, Rakuten Securities Inc. increased its position in shares of Roku by 55.6% during the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after acquiring an additional 158 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Company Profile

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.