Roku (NASDAQ:ROKU) Stock Price Down 6.1% – Should You Sell?

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

Wall Street Analyst Weigh In

A number of analysts have issued reports on ROKU shares. JPMorgan Chase & Co. upped their price objective on Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a report on Friday, February 14th. Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and upped their price target for the company from $55.00 to $100.00 in a research note on Thursday, February 20th. FBN Securities began coverage on shares of Roku in a research report on Friday, March 28th. They set an “outperform” rating and a $93.00 price objective for the company. Benchmark boosted their target price on shares of Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a report on Friday, February 14th. Finally, Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 price target for the company in a report on Tuesday, March 4th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating, seventeen have assigned a buy rating and three have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $96.55.

Roku Stock Performance

The company has a market cap of $8.07 billion, a P/E ratio of -62.11 and a beta of 2.17. The business’s fifty day moving average is $79.65 and its two-hundred day moving average is $77.39.

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

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Friday, January 10th. The stock was sold at an average price of $79.77, for a total value of $1,994,250.00. Following the completion of the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,116,936.26. The trade was a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction dated Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the transaction, the chief financial officer now owns 63,555 shares in the company, valued at approximately $4,905,174.90. The trade was a 1.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 97,905 shares of company stock worth $8,632,306. 13.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. Geneos Wealth Management Inc. grew its holdings in Roku by 369.9% in 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 Roku during the 4th quarter worth $30,000. Raelipskie Partnership acquired a new position in Roku during the 3rd quarter valued at about $32,000. Game Plan Financial Advisors LLC acquired a new position in Roku during the 4th quarter valued at about $37,000. Finally, Harvest Fund Management Co. Ltd boosted its holdings in Roku by 4,091.7% in the fourth quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock worth $37,000 after acquiring an additional 491 shares in the last quarter. 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.