Roku (NASDAQ:ROKU) Trading Down 2.9% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) shares fell 2.9% during mid-day trading on Monday . The company traded as low as $95.97 and last traded at $96.89. 2,461,539 shares traded hands during trading, a decline of 35% from the average session volume of 3,801,838 shares. The stock had previously closed at $99.77.

Wall Street Analysts Forecast Growth

ROKU has been the topic of several recent research reports. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Friday, October 31st. Morgan Stanley reaffirmed an “underweight” rating on shares of Roku in a report on Friday, October 31st. Raymond James Financial reaffirmed a “market perform” rating on shares of Roku in a research report on Friday, October 31st. Benchmark reissued a “buy” rating on shares of Roku in a report on Monday, October 27th. Finally, Susquehanna restated a “positive” rating and issued a $130.00 target price on shares of Roku in a research note on Friday, October 31st. Three equities research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $110.18.

Roku Trading Down 2.9%

The company has a market cap of $14.32 billion, a price-to-earnings ratio of -484.43 and a beta of 2.18. The business has a fifty day moving average of $99.61 and a two-hundred day moving average of $88.78.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. The business had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The business’s revenue was up 14.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.06) earnings per share. Roku has set its Q4 2025 guidance at EPS. On average, research analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In other news, Director Neil D. Hunt sold 2,000 shares of the business’s stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $106.61, for a total transaction of $213,220.00. Following the completion of the sale, the director owned 7,782 shares of the company’s stock, valued at $829,639.02. The trade was a 20.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Charles Collier sold 15,404 shares of the company’s stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $104.71, for a total transaction of $1,612,952.84. Following the transaction, the insider owned 200 shares of the company’s stock, valued at approximately $20,942. This trade represents a 98.72% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 507,463 shares of company stock worth $53,126,637 in the last quarter. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

Institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in shares of Roku by 2.5% during the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after acquiring an additional 322,858 shares during the last quarter. Acadian Asset Management LLC boosted its stake in shares of Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after acquiring an additional 785,864 shares during the last quarter. AQR Capital Management LLC increased its position in shares of Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Tableaux LLC acquired a new position in Roku in the 2nd quarter valued at $1,746,000. Finally, Holocene Advisors LP lifted its holdings in Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.