Roku (NASDAQ:ROKU) Trading Down 0.3% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) fell 0.3% during trading on Monday . The company traded as low as $86.81 and last traded at $88.57. 567,161 shares changed hands during trading, a decline of 85% from the average session volume of 3,672,259 shares. The stock had previously closed at $88.86.

Analyst Ratings Changes

Several research firms have weighed in on ROKU. JPMorgan Chase & Co. lifted their target price on Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a research note on Friday, February 14th. Bank of America boosted their price target on shares of Roku from $90.00 to $120.00 and gave the company a “buy” rating in a report on Friday, February 14th. Loop Capital lifted their price objective on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Monday, December 9th. UBS Group raised their price target on Roku from $73.00 to $90.00 and gave the stock a “neutral” rating in a research note on Friday, February 14th. Finally, Rosenblatt Securities restated a “neutral” rating and issued a $86.00 price objective on shares of Roku in a report on Thursday, February 13th. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $96.00.

Roku Stock Performance

The firm’s 50-day simple moving average is $81.67 and its 200-day simple moving average is $75.30. The company has a market capitalization of $13.29 billion, a price-to-earnings ratio of -102.45 and a beta of 2.05.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share 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 the consensus estimate of $1.15 billion. Equities research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,193,100.32. The trade was a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the transaction, the chief financial officer now owns 63,555 shares of the company’s stock, valued at approximately $4,905,174.90. This represents a 1.55 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 109,421 shares of company stock worth $9,660,786. Company insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Allspring Global Investments Holdings LLC lifted its position in shares of Roku by 11.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 2,207 shares of the company’s stock worth $165,000 after buying an additional 222 shares during the period. Sequoia Financial Advisors LLC lifted its holdings in shares of Roku by 4.5% during the third quarter. Sequoia Financial Advisors LLC now owns 4,721 shares of the company’s stock valued at $352,000 after acquiring an additional 202 shares during the period. International Assets Investment Management LLC lifted its holdings in shares of Roku by 8,030.0% during the third quarter. International Assets Investment Management LLC now owns 108,780 shares of the company’s stock valued at $8,122,000 after acquiring an additional 107,442 shares during the period. PFG Investments LLC boosted its position in Roku by 3.7% in the third quarter. PFG Investments LLC now owns 4,157 shares of the company’s stock valued at $310,000 after buying an additional 150 shares in the last quarter. Finally, Smith Group Asset Management LLC bought a new stake in Roku during the third quarter worth about $547,000. 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.