Roku (NASDAQ:ROKU) Trading Down 0.5% – Time to Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) were down 0.5% during mid-day trading on Tuesday . The stock traded as low as $72.34 and last traded at $73.67. Approximately 452,506 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 4,402,710 shares. The stock had previously closed at $74.03.

Wall Street Analyst Weigh In

Several analysts recently commented on ROKU shares. Citigroup raised their price objective on Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 25th. Piper Sandler raised their price target on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and boosted their price objective for the company from $70.00 to $90.00 in a research report on Monday. Rosenblatt Securities lifted their price target on shares of Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research note on Thursday, October 31st. Finally, Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Roku presently has an average rating of “Moderate Buy” and a consensus target price of $84.67.

Roku Stock Performance

The firm has a fifty day simple moving average of $74.36 and a 200-day simple moving average of $64.74. The firm has a market cap of $10.73 billion, a price-to-earnings ratio of -61.39 and a beta of 2.07.

Roku (NASDAQ:ROKU) last posted its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter last year, the company posted ($2.33) EPS. Roku’s quarterly revenue was up 16.5% compared to the same quarter last year. Analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, September 17th. The stock was sold at an average price of $75.33, for a total transaction of $75,330.00. Following the transaction, the chief financial officer now owns 54,267 shares of the company’s stock, valued at $4,087,933.11. The trade was a 1.81 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total value of $1,875,000.00. Following the sale, the chief executive officer now owns 5,020 shares of the company’s stock, valued at $376,500. This trade represents a 83.28 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 69,776 shares of company stock worth $5,267,305 in the last quarter. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Hedge funds have recently bought and sold shares of the company. Holocene Advisors LP bought a new position in shares of Roku during the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP boosted its stake in shares of Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after buying an additional 856,401 shares during the last quarter. Point72 Asset Management L.P. grew its holdings in shares of Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after acquiring an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP increased its position in shares of Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after acquiring an additional 445,777 shares during the last quarter. Finally, FMR LLC lifted its holdings in Roku by 1.7% during the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after acquiring an additional 244,793 shares during the period. 86.30% of the stock is 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.