Roku (NASDAQ:ROKU) Shares Down 2.5% Following Insider Selling

Roku, Inc. (NASDAQ:ROKU) traded down 2.5% on Monday after an insider sold shares in the company. The stock traded as low as $72.80 and last traded at $72.80. 547,844 shares were traded during trading, a decline of 88% from the average session volume of 4,584,099 shares. The stock had previously closed at $74.69.

Specifically, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the transaction, the chief executive officer now owns 5,020 shares of the company’s stock, valued at approximately $376,500. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Charles Collier sold 15,454 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now directly owns 200 shares of the company’s stock, valued at $15,000. The disclosure for this sale can be found here.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on ROKU shares. Guggenheim upgraded shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective on the stock in a research note on Friday, August 23rd. Rosenblatt Securities reduced their price target on shares of Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a research report on Friday, August 2nd. Benchmark reaffirmed a “buy” rating and set a $105.00 target price on shares of Roku in a report on Thursday. Macquarie reduced their price objective on Roku from $88.00 to $72.00 and set an “outperform” rating on the stock in a research report on Friday, August 2nd. Finally, Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of Roku in a research note on Friday. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and twelve have issued a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $78.25.

Roku Stock Performance

The stock has a market capitalization of $10.53 billion, a price-to-earnings ratio of -18.25 and a beta of 2.06. The business’s 50 day simple moving average is $61.88 and its 200-day simple moving average is $60.69.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.21. The business had revenue of $968.18 million during the quarter, compared to analyst estimates of $937.78 million. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The company’s revenue was up 14.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.76) earnings per share. As a group, sell-side analysts expect that Roku, Inc. will post -1.45 EPS for the current year.

Institutional Investors Weigh In On Roku

Several hedge funds have recently bought and sold shares of the business. Sumitomo Mitsui Trust Holdings Inc. increased its position in Roku by 24.7% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock worth $478,939,000 after purchasing an additional 1,457,925 shares during the last quarter. Nikko Asset Management Americas Inc. increased its holdings in shares of Roku by 25.8% during the 1st quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after purchasing an additional 1,455,408 shares during the period. Norges Bank acquired a new position in Roku in the 4th quarter valued at approximately $90,386,000. Quadrature Capital Ltd bought a new position in Roku in the fourth quarter worth $35,856,000. Finally, Vanguard Group Inc. boosted its position in shares of Roku by 3.3% during the 4th quarter. Vanguard Group Inc. now owns 11,853,947 shares of the company’s stock valued at $1,086,533,000 after acquiring an additional 380,409 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.