Roku (NASDAQ:ROKU) Stock Price Down 3.3% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) shares traded down 3.3% on Wednesday . The stock traded as low as $116.53 and last traded at $116.94. 2,339,312 shares changed hands during mid-day trading, a decline of 23% from the average session volume of 3,043,875 shares. The stock had previously closed at $120.91.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is reportedly in sale talks, including a possible media tie-up, which could signal a strategic transaction or premium valuation if a deal materializes. Roku said to be in sale talks, including likely media tie-up, Bloomberg News reports
• Positive Sentiment: Evercore ISI raised its price target to $185 from $160 and kept a bullish rating, reinforcing optimism around Roku’s monetization efforts in its home screen and advertising-tech initiatives. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
• Positive Sentiment: Additional recent price-target hikes from firms like Morgan Stanley have added to the bullish analyst narrative, suggesting Wall Street sees more upside in Roku’s ad and platform strategy. Roku shares jump as fresh bullish analyst notes extend recent price-target hikes
• Neutral Sentiment: Several media stories highlighted Roku’s expanding free channels and consumer product discounts, but these appear more promotional than material fundamental catalysts. Roku Quietly Added Four New Free Channels For The Month Of June
• Negative Sentiment: CEO Anthony Wood sold 18,000 shares in a pre-arranged trading plan, which may add some caution, although the sale was not necessarily a bearish signal. Roku (NASDAQ:ROKU) CEO Anthony Wood Sells 18,000 Shares

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Robert W. Baird lifted their price objective on Roku from $130.00 to $160.00 and gave the stock an “outperform” rating in a report on Monday, May 11th. Evercore reissued an “outperform” rating and issued a $185.00 price objective on shares of Roku in a report on Friday. Benchmark lifted their price objective on Roku from $130.00 to $160.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Moffett Nathanson reissued a “neutral” rating and issued a $100.00 price objective on shares of Roku in a report on Friday, February 13th. Finally, Zacks Research lowered Roku from a “strong-buy” rating to a “hold” rating in a report on Tuesday, April 14th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $146.96.

Roku Stock Performance

The firm has a 50 day simple moving average of $117.76 and a 200 day simple moving average of $105.97. The firm has a market cap of $21.18 billion, a P/E ratio of 108.02 and a beta of 2.06.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter last year, the company earned ($0.19) EPS. The firm’s revenue was up 22.4% compared to the same quarter last year. Sell-side analysts predict that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Charles Collier sold 205,821 shares of Roku stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the sale, the insider owned 11,131 shares in the company, valued at approximately $1,168,755. This trade represents a 94.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 9,593 shares of Roku stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $125.52, for a total value of $1,204,113.36. Following the sale, the insider owned 50,863 shares of the company’s stock, valued at approximately $6,384,323.76. This trade represents a 15.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 685,168 shares of company stock worth $77,352,473 in the last 90 days. 13.45% of the stock is owned by company insiders.

Institutional Trading of Roku

A number of large investors have recently modified their holdings of ROKU. Empowered Funds LLC boosted its position in shares of Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after acquiring an additional 515 shares during the last quarter. Focus Partners Wealth bought a new stake in shares of Roku during the 1st quarter valued at about $229,000. EverSource Wealth Advisors LLC boosted its position in shares of Roku by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock valued at $123,000 after acquiring an additional 826 shares during the last quarter. First Trust Advisors LP lifted its position in Roku by 231.0% in the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after buying an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. bought a new stake in Roku in the 2nd quarter worth approximately $326,000. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.