Roku (NASDAQ:ROKU) Stock Price Down 5% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 5% during mid-day trading on Friday . The stock traded as low as $74.77 and last traded at $75.53. 669,683 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 4,322,592 shares. The stock had previously closed at $79.48.

Analysts Set New Price Targets

A number of equities research analysts recently commented on ROKU shares. Benchmark reaffirmed a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Jefferies Financial Group lowered their price target on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research note on Friday, November 1st. Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective on the stock in a research note on Tuesday, October 1st. JPMorgan Chase & Co. upped their target price on shares of Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Finally, Loop Capital lifted their price target on shares of Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a research report on Monday, December 9th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $83.81.

Roku Price Performance

The firm has a 50-day moving average of $75.42 and a 200 day moving average of $68.51. The stock has a market capitalization of $11.18 billion, a price-to-earnings ratio of -64.19 and a beta of 2.06.

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

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total transaction of $76,250.00. Following the completion of the sale, the chief financial officer now owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This trade represents a 1.84 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction on 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 transaction, the chief executive officer now owns 5,020 shares in the company, valued at approximately $387,544. This represents a 83.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 73,096 shares of company stock worth $5,661,223. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several hedge funds and other institutional investors have recently modified their holdings of ROKU. Raelipskie Partnership acquired a new stake in Roku during the third quarter worth approximately $32,000. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% during 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 period. Future Financial Wealth Managment LLC acquired a new stake in Roku during the 3rd quarter worth approximately $43,000. GS Investments Inc. boosted its stake in Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after purchasing an additional 147 shares during the period. Finally, Cedar Wealth Management LLC acquired a new position in Roku in the 2nd quarter valued at $48,000. 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.