Roku (NASDAQ:ROKU) Trading Down 4.4% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s share price fell 4.4% during mid-day trading on Wednesday . The stock traded as low as $94.24 and last traded at $93.8890. 1,386,452 shares traded hands during trading, a decline of 63% from the average session volume of 3,730,675 shares. The stock had previously closed at $98.26.

Analyst Upgrades and Downgrades

ROKU has been the topic of a number of analyst reports. JMP Securities reiterated a “market outperform” rating and set a $145.00 target price on shares of Roku in a report on Thursday, October 2nd. Zacks Research upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 31st. Needham & Company LLC restated a “buy” rating and issued a $110.00 target price on shares of Roku in a report on Wednesday, October 1st. UBS Group lifted their price target on shares of Roku from $95.00 to $103.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Finally, Raymond James Financial reissued a “market perform” rating on shares of Roku in a research note on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Roku currently has an average rating of “Moderate Buy” and an average price target of $112.68.

Roku Stock Performance

The company’s fifty day moving average is $99.04 and its two-hundred day moving average is $91.08. The firm has a market cap of $13.71 billion, a price-to-earnings ratio of -463.20 and a beta of 1.98.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, October 30th. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. The firm’s quarterly revenue was up 14.0% on a year-over-year basis. As a group, analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, insider Charles Collier sold 118,088 shares of Roku stock in a transaction on Friday, October 31st. The shares were sold at an average price of $115.00, for a total value of $13,580,120.00. Following the completion of the sale, the insider owned 200 shares in the company, valued at approximately $23,000. The trade was a 99.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Anthony J. Wood sold 50,000 shares of the company’s stock in a transaction on Monday, November 10th. The shares were sold at an average price of $103.86, for a total transaction of $5,193,000.00. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 498,733 shares of company stock valued at $52,273,682. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently bought and sold shares of the company. Allworth Financial LP lifted its holdings in Roku by 77.9% during the 3rd quarter. Allworth Financial LP now owns 3,796 shares of the company’s stock worth $380,000 after buying an additional 1,662 shares during the last quarter. IFP Advisors Inc raised its position in shares of Roku by 110.9% during the 3rd quarter. IFP Advisors Inc now owns 3,824 shares of the company’s stock valued at $383,000 after acquiring an additional 2,011 shares in the last quarter. Caerus Investment Advisors LLC bought a new position in Roku during the third quarter worth $615,000. Captrust Financial Advisors boosted its holdings in Roku by 253.3% in the third quarter. Captrust Financial Advisors now owns 15,755 shares of the company’s stock worth $1,578,000 after purchasing an additional 11,296 shares during the period. Finally, Danske Bank A S acquired a new position in Roku in the third quarter worth $456,000. 86.30% of the stock is owned by 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.