Roku (NASDAQ:ROKU) Trading Down 0.2% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s share price fell 0.2% during mid-day trading on Monday . The stock traded as low as $68.52 and last traded at $69.09. 695,984 shares traded hands during trading, a decline of 84% from the average session volume of 4,406,974 shares. The stock had previously closed at $69.20.

Analysts Set New Price Targets

ROKU has been the topic of a number of analyst reports. Piper Sandler increased their price target on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. UBS Group began coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price on the stock. Guggenheim raised shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a report on Friday, August 23rd. Bank of America raised their price objective on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research note on Monday, September 30th. Finally, Morgan Stanley boosted their target price on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $84.14.

Roku Stock Up 2.1 %

The stock has a market capitalization of $9.83 billion, a P/E ratio of -56.42 and a beta of 2.07. The stock has a 50 day simple moving average of $74.16 and a two-hundred day simple moving average of $65.25.

Roku (NASDAQ:ROKU) last released its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate 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 business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period last year, the business earned ($2.33) earnings per share. The firm’s revenue was up 16.5% on a year-over-year basis. Sell-side analysts predict that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Activity

In related news, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. This represents a 54.48 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the transaction, the insider now directly owns 38,602 shares of the company’s stock, valued at approximately $2,485,582.78. This trade represents a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 90,240 shares of company stock valued at $6,729,582. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Raelipskie Partnership bought a new stake in shares of Roku during the third quarter worth approximately $32,000. Future Financial Wealth Managment LLC bought a new stake in Roku in the 3rd quarter valued at $43,000. GS Investments Inc. grew its holdings in Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after buying an additional 147 shares in the last quarter. EverSource Wealth Advisors LLC increased its position in Roku by 123.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the period. Finally, Cedar Wealth Management LLC acquired a new stake in shares of Roku during the second quarter worth $48,000. 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.