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

Roku, Inc. (NASDAQ:ROKU)’s share price fell 2% during trading on Tuesday . The company traded as low as $81.54 and last traded at $82.87. 1,233,304 shares traded hands during trading, a decline of 57% from the average session volume of 2,840,788 shares. The stock had previously closed at $84.60.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on ROKU shares. Macquarie restated an “outperform” rating and set a $90.00 target price on shares of Roku in a report on Thursday, October 31st. Wedbush reaffirmed an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Monday. Jefferies Financial Group reduced their price target on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research report on Friday, November 1st. Piper Sandler upped their price objective 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. Finally, Moffett Nathanson lowered Roku from a “neutral” rating to a “sell” rating and set a $55.00 target price on the stock. in a report on Friday, January 10th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating, thirteen have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $83.18.

Roku Price Performance

The firm has a 50-day moving average of $79.84 and a 200 day moving average of $72.84. The stock has a market capitalization of $12.06 billion, a price-to-earnings ratio of -69.39 and a beta of 2.05.

Insider Buying and Selling

In related news, insider Charles Collier sold 10,771 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the sale, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. This represents a 73.97 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the transaction, the chief financial officer now directly owns 65,555 shares of the company’s stock, valued at approximately $4,916,625. This trade represents a 1.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 72,885 shares of company stock worth $5,712,912. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds have recently added to or reduced their stakes in the company. Holocene Advisors LP acquired a new position in shares of Roku in the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP boosted its holdings in Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after purchasing an additional 856,401 shares during the period. Point72 Asset Management L.P. grew its position in shares of 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 in the last quarter. JAT Capital Mgmt LP increased its holdings in shares of Roku by 470.2% during the third 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, Jupiter Asset Management Ltd. raised its position in shares of Roku by 164.5% in the fourth quarter. Jupiter Asset Management Ltd. now owns 506,351 shares of the company’s stock valued at $37,642,000 after buying an additional 314,931 shares in the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

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.