Roku (NASDAQ:ROKU) Trading Down 6.1% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) shares dropped 6.1% on Friday . The company traded as low as $53.24 and last traded at $56.59. Approximately 2,073,810 shares traded hands during trading, a decline of 44% from the average daily volume of 3,722,235 shares. The stock had previously closed at $60.26.

Wall Street Analyst Weigh In

ROKU has been the subject of a number of research analyst reports. Benchmark raised their target price on Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a research note on Friday, February 14th. FBN Securities assumed coverage on Roku in a research note on Friday, March 28th. They issued an “outperform” rating and a $93.00 price objective for the company. Jefferies Financial Group upgraded Roku from an “underperform” rating to a “hold” rating and upped their target price for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. Pivotal Research upgraded shares of Roku from a “hold” rating to a “buy” rating and increased their price target for the stock from $65.00 to $125.00 in a report on Friday, February 14th. Finally, UBS Group raised shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Thursday, March 27th. One analyst has rated the stock with a sell rating, five have assigned a hold rating, seventeen have assigned a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $96.55.

Roku Stock Down 8.3 %

The firm has a market capitalization of $8.07 billion, a PE ratio of -62.11 and a beta of 2.17. The stock has a 50-day moving average price of $79.65 and a 200 day moving average price of $77.39.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, topping the consensus estimate of ($0.44) by $0.20. The company had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. As a group, equities analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity at Roku

In other Roku news, insider Charles Collier sold 7,181 shares of the firm’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $78.25, for a total value of $561,913.25. Following the transaction, the insider now owns 7,380 shares in the company, valued at approximately $577,485. This trade represents a 49.32 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Friday, January 10th. The stock was sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,116,936.26. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 97,905 shares of company stock valued at $8,632,306. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently modified their holdings of the business. Versant Capital Management Inc grew its stake in Roku by 283.2% during the 1st quarter. Versant Capital Management Inc now owns 3,644 shares of the company’s stock valued at $257,000 after acquiring an additional 2,693 shares in the last quarter. Central Pacific Bank Trust Division purchased a new stake in shares of Roku in the first quarter valued at approximately $469,000. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Roku by 19.7% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 6,225 shares of the company’s stock valued at $463,000 after purchasing an additional 1,024 shares during the last quarter. Audent Global Asset Management LLC lifted its position in Roku by 222.9% during the fourth quarter. Audent Global Asset Management LLC now owns 21,127 shares of the company’s stock worth $1,571,000 after buying an additional 14,584 shares in the last quarter. Finally, Siemens Fonds Invest GmbH acquired a new position in Roku during the fourth quarter worth $1,681,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

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.