Roku (NASDAQ:ROKU) Trading Down 0.8% – Time to Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 0.8% during trading on Wednesday . The company traded as low as $79.10 and last traded at $79.12. Approximately 872,372 shares traded hands during mid-day trading, a decline of 69% from the average daily volume of 2,841,934 shares. The stock had previously closed at $79.74.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Citizens Jmp upgraded shares of Roku to a “strong-buy” rating in a research report on Tuesday. Bank of America increased their price objective on shares of Roku from $75.00 to $90.00 and gave the company a “buy” rating in a report on Monday, September 30th. Macquarie reaffirmed an “outperform” rating and set a $90.00 target price on shares of Roku in a report on Thursday, October 31st. Baird R W raised Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Finally, UBS Group assumed coverage on Roku in a research note on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective for the company. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and a consensus price target of $83.18.

Roku Price Performance

The company has a market capitalization of $11.80 billion, a price-to-earnings ratio of -67.74 and a beta of 2.05. The firm has a 50-day moving average price of $76.87 and a two-hundred day moving average price of $71.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the prior year, the firm posted ($2.33) EPS. The business’s revenue was up 16.5% on a year-over-year basis. On average, equities analysts predict that Roku, Inc. will post -1.09 EPS for the current year.

Insider Activity at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the sale, the chief financial officer now owns 64,555 shares in the company, valued at approximately $5,340,635.15. This represents a 1.53 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Charles Collier sold 10,771 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the insider now owns 3,790 shares of the company’s stock, valued at approximately $269,620.60. This represents a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 73,095 shares of company stock valued at $5,726,218. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently added to or reduced their stakes in the company. American Century Companies Inc. raised its stake in Roku by 3.5% in the second quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock valued at $1,549,000 after buying an additional 877 shares during the period. Federated Hermes Inc. raised its stake in Roku by 32.6% in the 2nd quarter. Federated Hermes Inc. now owns 1,695 shares of the company’s stock valued at $102,000 after acquiring an additional 417 shares during the period. Envestnet Asset Management Inc. lifted its holdings in Roku by 20.7% during the 2nd quarter. Envestnet Asset Management Inc. now owns 110,616 shares of the company’s stock valued at $6,629,000 after purchasing an additional 19,002 shares during the last quarter. Vanguard Personalized Indexing Management LLC lifted its holdings in Roku by 6.6% during the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 11,271 shares of the company’s stock valued at $675,000 after purchasing an additional 698 shares during the last quarter. Finally, Thrivent Financial for Lutherans boosted its position in Roku by 8.4% during the second quarter. Thrivent Financial for Lutherans now owns 61,808 shares of the company’s stock worth $3,704,000 after purchasing an additional 4,768 shares during the period. 86.30% of the stock is currently 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.