Roku (NASDAQ:ROKU) Stock Price Down 4.6% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) were down 4.6% during mid-day trading on Monday . The company traded as low as $67.50 and last traded at $69.18. Approximately 871,632 shares changed hands during mid-day trading, a decline of 76% from the average daily volume of 3,701,781 shares. The stock had previously closed at $72.49.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ROKU. JPMorgan Chase & Co. raised their price target on Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a research report on Friday, February 14th. Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 price target on the stock in a research note on Tuesday, March 4th. Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $74.00 to $129.00 in a research note on Friday, February 14th. Citizens Jmp upgraded Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Finally, Bank of America assumed coverage on Roku in a research note on Thursday, March 27th. They issued a “buy” rating and a $100.00 target price for the company. One research analyst has rated the stock with a sell rating, five have issued a hold rating, seventeen have assigned a buy rating and three have issued a strong buy rating to the company’s stock. According to MarketBeat, Roku presently has an average rating of “Moderate Buy” and an average target price of $96.55.

Roku Stock Performance

The business’s fifty day simple moving average is $80.80 and its 200 day simple moving average is $77.67. The stock has a market cap of $10.30 billion, a price-to-earnings ratio of -79.33 and a beta of 2.12.

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

Insider Buying and Selling

In related news, CFO Dan Jedda sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $100.40, for a total transaction of $502,000.00. Following the sale, the chief financial officer now directly owns 58,555 shares of the company’s stock, valued at approximately $5,878,922. This represents a 7.87 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 4,600 shares of Roku stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total transaction of $345,000.00. Following the completion of the transaction, the chief executive officer now directly owns 6,243 shares of the company’s stock, valued at approximately $468,225. This represents a 42.42 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 97,908 shares of company stock worth $8,633,436. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of the business. Entropy Technologies LP boosted its stake in Roku by 264.4% in the fourth quarter. Entropy Technologies LP now owns 25,525 shares of the company’s stock valued at $1,898,000 after acquiring an additional 18,520 shares during the period. National Bank of Canada FI lifted its stake in Roku by 11,626.3% in the third quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock valued at $11,259,000 after buying an additional 149,514 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its holdings in shares of Roku by 3.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company’s stock valued at $73,661,000 after acquiring an additional 34,898 shares during the period. Achmea Investment Management B.V. grew its position in shares of Roku by 146.4% during the fourth quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company’s stock worth $756,000 after acquiring an additional 6,042 shares during the last quarter. Finally, Oak Thistle LLC acquired a new stake in shares of Roku in the 4th quarter worth about $823,000. Institutional investors 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.