Roku (NASDAQ:ROKU) Trading Down 3% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shares fell 3% on Monday . The company traded as low as $77.67 and last traded at $77.67. 520,318 shares changed hands during mid-day trading, a decline of 88% from the average session volume of 4,373,567 shares. The stock had previously closed at $80.07.

Analyst Ratings Changes

A number of brokerages have recently commented on ROKU. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price target on shares of Roku in a report on Tuesday. Macquarie upped their price objective on Roku from $72.00 to $90.00 and gave the stock an “outperform” rating in a report on Thursday, October 3rd. JPMorgan Chase & Co. raised their price objective on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a report on Thursday, October 10th. Wells Fargo & Company raised shares of Roku from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $50.00 to $72.00 in a research note on Thursday, September 5th. Finally, Citigroup lifted their target price on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $81.24.

Roku Trading Down 4.3 %

The company has a market cap of $10.63 billion, a PE ratio of -21.61 and a beta of 2.08. The stock has a 50 day moving average price of $71.40 and a 200 day moving average price of $63.08.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.21. Roku had a negative net margin of 13.16% and a negative return on equity of 21.03%. The firm had revenue of $968.18 million for the quarter, compared to the consensus estimate of $937.78 million. During the same period in the prior year, the firm earned ($0.76) EPS. The company’s revenue was up 14.3% compared to the same quarter last year. Equities analysts expect that Roku, Inc. will post -1.44 EPS for the current fiscal year.

Insider Activity

In related news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total value of $1,930,000.00. Following the sale, the chief executive officer now owns 5,020 shares in the company, valued at $387,544. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at approximately $387,544. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charles Collier sold 15,454 shares of the company’s stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now owns 200 shares in the company, valued at approximately $15,000. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 69,566 shares of company stock worth $5,254,000. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Future Financial Wealth Managment LLC bought a new position in Roku during the 3rd quarter valued at about $43,000. EverSource Wealth Advisors LLC boosted its holdings in Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after purchasing an additional 375 shares during the last quarter. Geneos Wealth Management Inc. grew its position in Roku by 835.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock worth $45,000 after purchasing an additional 610 shares during the period. Cedar Wealth Management LLC purchased a new position in shares of Roku in the 2nd quarter worth $48,000. Finally, Natixis bought a new stake in shares of Roku in the first quarter worth $53,000. 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.