Roku (NASDAQ:ROKU) Shares Gap Down on Insider Selling

Roku, Inc. (NASDAQ:ROKU) shares gapped down before the market opened on Wednesday following insider selling activity. The stock had previously closed at $73.61, but opened at $67.99. Roku shares last traded at $69.41, with a volume of 2,268,725 shares changing hands.

Specifically, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charles Collier sold 10,771 shares of Roku stock in a transaction dated Monday, November 18th. The stock was 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 in the company, valued at approximately $269,620.60. This represents a 73.97 % decrease in their position. The disclosure for this sale can be found here. In related news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction dated Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the sale, the chief financial officer now directly owns 65,555 shares in the company, valued at $4,916,625. This represents a 1.50 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Wall Street Analysts Forecast Growth

ROKU has been the subject of several recent research reports. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price objective on shares of Roku in a research report on Thursday, October 31st. Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Monday. Benchmark reissued a “buy” rating and issued a $105.00 price target on shares of Roku in a report on Thursday, September 12th. Morgan Stanley upped their price objective on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Finally, Loop Capital raised their target price on Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a research note on Thursday, October 31st. Two analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $84.67.

Roku Stock Down 6.7 %

The firm has a market capitalization of $9.98 billion, a P/E ratio of -56.64 and a beta of 2.07. The company has a fifty day simple moving average of $74.69 and a 200 day simple moving average of $64.94.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. Roku’s revenue was up 16.5% compared to the same quarter last year. During the same period last year, the business earned ($2.33) EPS. As a group, equities analysts expect that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Roku

Several institutional investors have recently modified their holdings of ROKU. Sender Co & Partners Inc. purchased a new position in Roku in the third quarter worth about $827,000. M&T Bank Corp grew its position in shares of Roku by 19.1% during the third quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock valued at $525,000 after purchasing an additional 1,126 shares in the last quarter. Raelipskie Partnership bought a new stake in Roku in the third quarter worth $32,000. Nomura Asset Management Co. Ltd. lifted its holdings in shares of Roku by 14.1% in the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 36,420 shares of the company’s stock valued at $2,719,000 after acquiring an additional 4,500 shares during the last quarter. Finally, MML Investors Services LLC boosted its stake in Roku by 9.8% during the third quarter. MML Investors Services LLC now owns 10,592 shares of the company’s stock worth $791,000 after buying an additional 948 shares during the period. 86.30% of the stock is owned by hedge funds and other 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.