Roku (NASDAQ:ROKU) Shares Down 4.4% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 4.4% during mid-day trading on Friday . The company traded as low as $78.80 and last traded at $79.35. 1,263,902 shares changed hands during trading, a decline of 56% from the average session volume of 2,893,622 shares. The stock had previously closed at $83.00.

Analysts Set New Price Targets

A number of research firms have commented on ROKU. Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. UBS Group initiated coverage on Roku in a report on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective on the stock. Needham & Company LLC reissued a “buy” rating and set a $100.00 price objective on shares of Roku in a research note on Tuesday, January 7th. Wedbush reaffirmed an “outperform” rating and set a $100.00 price target on shares of Roku in a research note on Wednesday. Finally, Jefferies Financial Group cut their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research report on Friday, November 1st. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $82.62.

Roku Price Performance

The firm’s fifty day moving average is $76.26 and its 200-day moving average is $70.06. The stock has a market capitalization of $11.50 billion, a price-to-earnings ratio of -65.99 and a beta of 2.05.

Roku (NASDAQ:ROKU) last posted its earnings results 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. The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. Roku’s revenue was up 16.5% on a year-over-year basis. During the same period in the previous year, the business posted ($2.33) EPS. On average, sell-side analysts expect that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In related news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the transaction, the insider now owns 3,790 shares in the company, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total value of $2,066,000.00. Following the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,193,100.32. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 48,095 shares of company stock worth $3,731,038 in the last 90 days. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Everence Capital Management Inc. acquired a new stake in Roku during the fourth quarter worth about $350,000. Franklin Resources Inc. grew its holdings in shares of Roku by 14.5% during the 3rd quarter. Franklin Resources Inc. now owns 82,170 shares of the company’s stock worth $6,275,000 after purchasing an additional 10,416 shares in the last quarter. Sender Co & Partners Inc. bought a new stake in shares of Roku during the third quarter valued at approximately $827,000. M&T Bank Corp raised its stake in shares of Roku by 19.1% in the third quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock valued at $525,000 after purchasing an additional 1,126 shares in the last quarter. Finally, Raelipskie Partnership bought a new position in Roku in the third quarter worth $32,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.