Roku (NASDAQ:ROKU) Trading Down 2.1% Following Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 2.1% on Tuesday following insider selling activity. The stock traded as low as $96.84 and last traded at $97.01. Approximately 2,248,689 shares were traded during trading, a decline of 38% from the average daily volume of 3,647,681 shares. The stock had previously closed at $99.07.

Specifically, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $2,510,000.00. Following the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,664,415.20. The trade was a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 2,000 shares of Roku stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $99.95, for a total transaction of $199,900.00. Following the completion of the transaction, the chief financial officer now owns 56,555 shares in the company, valued at approximately $5,652,672.25. This represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other Roku news, CFO Dan Jedda sold 5,000 shares of Roku stock in a transaction on Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $502,000.00. Following the transaction, the chief financial officer now directly owns 58,555 shares in the company, valued at approximately $5,878,922. The trade was a 7.87 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

ROKU has been the topic of several analyst reports. Morgan Stanley lifted their target price on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Tuesday, October 29th. Citizens Jmp raised shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Jefferies Financial Group lowered their target price on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a report on Friday, November 1st. Wedbush reaffirmed an “outperform” rating and issued a $100.00 target price on shares of Roku in a report on Monday, February 10th. Finally, Wells Fargo & Company raised shares of Roku from an “equal weight” rating to an “overweight” rating and lifted their target price for the company from $74.00 to $129.00 in a report on Friday. Three equities research analysts have rated the stock with a sell rating, five have assigned a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $92.62.

Roku Price Performance

The company has a market cap of $13.91 billion, a price-to-earnings ratio of -79.83 and a beta of 2.05. The business’s 50-day simple moving average is $80.86 and its 200-day simple moving average is $74.18.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. The company had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. As a group, sell-side analysts forecast that Roku, Inc. will post -1.09 EPS for the current year.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently modified their holdings of the company. FMR LLC raised its position in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after buying an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. raised its position in shares of Roku by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock valued at $910,597,000 after buying an additional 185,676 shares during the last quarter. Marshall Wace LLP raised its position in shares of Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after buying an additional 2,030,036 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its position in shares of Roku by 10.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock valued at $168,734,000 after buying an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock valued at $159,353,000 after buying an additional 56,820 shares during the last quarter. 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.