Roku (NASDAQ:ROKU) Trading Down 0.8% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s stock price was down 0.8% during trading on Wednesday . The company traded as low as $79.10 and last traded at $79.12. Approximately 872,372 shares changed hands during trading, a decline of 69% from the average daily volume of 2,841,934 shares. The stock had previously closed at $79.74.

Analyst Ratings Changes

Several brokerages recently issued reports on ROKU. Wedbush reissued an “outperform” rating and set a $100.00 target price on shares of Roku in a research note on Wednesday, January 8th. Loop Capital raised their target price on shares of Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. Jefferies Financial Group decreased their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Piper Sandler lifted their price objective on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Finally, UBS Group initiated coverage on shares of Roku in a report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price for the company. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $83.18.

Roku Stock Performance

The business’s 50 day moving average is $76.72 and its 200-day moving average is $70.88. The stock has a market cap of $11.65 billion, a price-to-earnings ratio of -66.82 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating 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 firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same period last year, the company posted ($2.33) EPS. Roku’s quarterly revenue was up 16.5% compared to the same quarter last year. Sell-side analysts anticipate that Roku, Inc. will post -1.09 EPS for the current fiscal year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the sale, the chief financial officer now directly owns 63,555 shares of the company’s stock, valued at approximately $4,905,174.90. This trade represents a 1.55 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the sale, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 73,095 shares of company stock valued at $5,726,218. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

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