Roku (NASDAQ:ROKU) Trading Down 20.9% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) shares were down 20.9% on Thursday . The stock traded as low as $61.15 and last traded at $61.34. Approximately 7,287,286 shares were traded during trading, an increase of 67% from the average daily volume of 4,354,477 shares. The stock had previously closed at $77.51.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on ROKU. Citigroup raised their price target on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a research note on Tuesday, October 1st. Robert W. Baird boosted their price target on Roku from $56.00 to $75.00 and gave the company a “neutral” rating in a report on Monday, September 30th. Rosenblatt Securities increased their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a report on Thursday. Finally, Macquarie reissued an “outperform” rating and set a $90.00 target price on shares of Roku in a research note on Thursday. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and twelve have issued a buy rating to the company. According to MarketBeat.com, Roku currently has an average rating of “Hold” and an average target price of $83.80.

Roku Stock Down 21.6 %

The company’s fifty day moving average price is $73.24 and its 200-day moving average price is $63.66. The stock has a market capitalization of $8.76 billion, a PE ratio of -15.37 and a beta of 2.08.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The business had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the previous year, the business earned ($2.33) earnings per share. The firm’s quarterly revenue was up 16.5% compared to the same quarter last year. Equities research analysts anticipate that Roku, Inc. will post -1.43 earnings per share for the current year.

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated Tuesday, September 17th. The shares were sold at an average price of $75.33, for a total value of $75,330.00. Following the completion of the transaction, the chief financial officer now directly owns 54,267 shares of the company’s stock, valued at approximately $4,087,933.11. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other Roku news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Tuesday, September 17th. The stock was sold at an average price of $75.33, for a total value of $75,330.00. Following the completion of the sale, the chief financial officer now owns 54,267 shares of the company’s stock, valued at approximately $4,087,933.11. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of the company’s stock in a transaction on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the transaction, the insider now directly owns 38,602 shares in the company, valued at approximately $2,485,582.78. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 69,566 shares of company stock valued at $5,254,000. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

A number of institutional investors have recently made changes to their positions in ROKU. EverSource Wealth Advisors LLC lifted its position in Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares during the period. Future Financial Wealth Managment LLC bought a new position in shares of Roku during the 3rd quarter valued at $43,000. Geneos Wealth Management Inc. boosted its stake in shares of Roku by 835.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock worth $45,000 after buying an additional 610 shares during the last quarter. Cedar Wealth Management LLC bought a new stake in shares of Roku in the second quarter worth $48,000. Finally, Natixis purchased a new stake in Roku during the first quarter valued at $53,000. Hedge funds and other 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.