Roku (NASDAQ:ROKU) Shares Down 4.6% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 4.6% during trading on Tuesday . The company traded as low as $66.52 and last traded at $66.46. 892,219 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 3,673,725 shares. The stock had previously closed at $69.65.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 price objective on the stock in a report on Tuesday, March 4th. JMP Securities boosted their price objective on shares of Roku from $95.00 to $115.00 and gave the stock a “market outperform” rating in a report on Friday, February 14th. Rosenblatt Securities reiterated a “neutral” rating and issued a $86.00 price objective on shares of Roku in a report on Thursday, February 13th. Citigroup boosted their target price on shares of Roku from $70.00 to $103.00 and gave the stock a “neutral” rating in a research report on Thursday, February 20th. Finally, Benchmark boosted their target price on shares of Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a research report on Friday, February 14th. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, fourteen have issued a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $96.71.

Roku Stock Performance

The business’s 50 day simple moving average is $81.09 and its 200-day simple moving average is $77.09. The stock has a market capitalization of $10.53 billion, a price-to-earnings ratio of -81.06 and a beta of 2.12.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.20. The firm had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. As a group, sell-side analysts expect that Roku, Inc. will post -0.3 EPS for the current year.

Insider Transactions at Roku

In related news, insider Charles Collier sold 7,181 shares of the stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total transaction of $561,913.25. Following the completion of the sale, the insider now directly owns 7,380 shares of the company’s stock, valued at $577,485. This represents a 49.32 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,116,936.26. This represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 92,308 shares of company stock valued at $8,213,436. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Large investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. raised its holdings in shares of Roku by 369.9% during the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after acquiring an additional 270 shares during the period. Vision Financial Markets LLC acquired a new position in Roku in the 4th quarter valued at approximately $30,000. Raelipskie Partnership acquired a new position in Roku in the 3rd quarter valued at approximately $32,000. Game Plan Financial Advisors LLC acquired a new position in Roku in the 4th quarter valued at approximately $37,000. Finally, Harvest Fund Management Co. Ltd increased its stake in Roku by 4,091.7% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after buying an additional 491 shares during the period. 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.