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

Roku, Inc. (NASDAQ:ROKU) shares were down 3% during mid-day trading on Wednesday . The stock traded as low as $78.61 and last traded at $79.28. Approximately 524,843 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 3,678,164 shares. The stock had previously closed at $81.73.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Pivotal Research upgraded shares of Roku from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $65.00 to $125.00 in a research report on Friday, February 14th. Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 target price for the company in a research report on Tuesday, March 4th. Citizens Jmp upgraded Roku to a “strong-buy” rating in a research note on Tuesday, January 21st. JMP Securities upped their price objective on Roku from $95.00 to $115.00 and gave the stock a “market outperform” rating in a research note on Friday, February 14th. Finally, FBN Securities started coverage on shares of Roku in a research note on Friday. They issued an “outperform” rating and a $93.00 target price for the company. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, seventeen have issued a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $96.55.

Roku Stock Performance

The company’s 50 day simple moving average is $81.16 and its 200 day simple moving average is $77.54. The stock has a market cap of $10.58 billion, a PE ratio of -81.45 and a beta of 2.12.

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

Insider Buying and Selling

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Friday, January 10th. The shares were sold at an average price of $79.77, for a total value of $1,994,250.00. Following the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,116,936.26. The trade was a 48.51 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 7,181 shares of the stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total value of $561,913.25. Following the transaction, the insider now directly owns 7,380 shares of the company’s stock, valued at approximately $577,485. This trade represents a 49.32 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 97,908 shares of company stock valued at $8,633,436. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

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

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.