Roku (NASDAQ:ROKU) Shares Down 2% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 2% during trading on Friday . The stock traded as low as $89.90 and last traded at $90.91. 611,108 shares were traded during trading, a decline of 83% from the average session volume of 3,680,575 shares. The stock had previously closed at $92.79.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent research reports. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Piper Sandler upped their target price on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of Roku in a research note on Tuesday, January 7th. Jefferies Financial Group upgraded Roku from an “underperform” rating to a “hold” rating and raised their price target for the stock from $55.00 to $100.00 in a research report on Thursday. Finally, JMP Securities upped their price objective on Roku from $95.00 to $115.00 and gave the company a “market outperform” rating in a report on Friday, February 14th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $96.00.

Roku Stock Down 4.4 %

The firm has a market capitalization of $12.88 billion, a price-to-earnings ratio of -99.43 and a beta of 2.05. The business’s fifty day moving average is $81.56 and its 200 day moving average is $74.73.

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

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction 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 completion of the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Dan Jedda sold 2,000 shares of the business’s stock in a transaction dated Tuesday, February 18th. The stock was sold at an average price of $99.95, for a total transaction of $199,900.00. Following the sale, the chief financial officer now directly owns 56,555 shares in the company, valued at $5,652,672.25. This trade represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 109,421 shares of company stock valued at $9,660,786. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Geneos Wealth Management Inc. lifted its stake in Roku by 369.9% in the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after acquiring an additional 270 shares during the last quarter. Vision Financial Markets LLC bought a new stake in shares of Roku in the 4th quarter valued at about $30,000. Raelipskie Partnership bought a new stake in shares of Roku in the 3rd quarter valued at about $32,000. Game Plan Financial Advisors LLC acquired a new stake in Roku in the 4th quarter valued at about $37,000. Finally, Harvest Fund Management Co. Ltd grew its holdings in Roku by 4,091.7% during the fourth quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock worth $37,000 after purchasing an additional 491 shares during the period. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

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.