Roku (NASDAQ:ROKU) Stock Price Down 1.6% After Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 1.6% on Wednesday after an insider sold shares in the company. The stock traded as low as $77.21 and last traded at $77.69. 699,602 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 4,400,586 shares. The stock had previously closed at $78.93.

Specifically, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total transaction of $76,250.00. Following the transaction, the chief financial officer now owns 53,267 shares in the company, valued at $4,061,608.75. The trade was a 0.00 % decrease in their ownership of the stock. 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 stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total value of $1,930,000.00. Following the completion of the sale, the chief executive officer now owns 5,020 shares of the company’s stock, valued at approximately $387,544. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on ROKU. Rosenblatt Securities decreased their price target on Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. 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. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price objective on shares of Roku in a report on Friday, September 13th. Wedbush reaffirmed an “outperform” rating and set a $75.00 target price on shares of Roku in a research report on Friday, August 2nd. Finally, Citigroup raised their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $81.24.

Roku Stock Performance

The stock has a market cap of $11.59 billion, a P/E ratio of -22.90 and a beta of 2.08. The firm’s 50 day moving average is $70.03 and its 200 day moving average is $62.72.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.45) by $0.21. The business had revenue of $968.18 million during the quarter, compared to analysts’ expectations of $937.78 million. Roku had a negative net margin of 13.16% and a negative return on equity of 21.03%. The company’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same period in the previous year, the company earned ($0.76) EPS. As a group, analysts expect that Roku, Inc. will post -1.44 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. ARK Investment Management LLC grew its stake in Roku by 1.3% in the second quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock valued at $762,096,000 after purchasing an additional 159,785 shares in the last quarter. Vanguard Group Inc. boosted its stake in Roku by 0.8% in the first quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock valued at $778,560,000 after acquiring an additional 92,658 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock valued at $478,939,000 after purchasing an additional 1,457,925 shares in the last quarter. Nikko Asset Management Americas Inc. grew its position in Roku by 25.8% in the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock valued at $462,108,000 after purchasing an additional 1,455,408 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its holdings in shares of Roku by 5.2% during the 2nd quarter. Bank of New York Mellon Corp now owns 500,794 shares of the company’s stock worth $30,013,000 after acquiring an additional 24,926 shares during the last quarter. Institutional investors and hedge funds 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.