Roku (NASDAQ:ROKU) Trading Down 1.7% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s share price traded down 1.7% on Tuesday . The stock traded as low as $92.82 and last traded at $95.27. 2,971,295 shares changed hands during mid-day trading, a decline of 22% from the average session volume of 3,798,156 shares. The stock had previously closed at $96.89.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on ROKU shares. Guggenheim raised their price target on Roku from $100.00 to $105.00 and gave the stock a “buy” rating in a research note on Friday, August 1st. Piper Sandler raised Roku from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $88.00 to $135.00 in a report on Monday, November 3rd. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 31st. KeyCorp reaffirmed an “overweight” rating and issued a $116.00 target price on shares of Roku in a report on Tuesday, October 28th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Roku in a research report on Wednesday, October 8th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $111.14.

Roku Trading Down 1.7%

The stock has a fifty day simple moving average of $99.61 and a two-hundred day simple moving average of $88.78. The company has a market cap of $14.08 billion, a PE ratio of -476.33 and a beta of 2.18.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.07 by $0.09. The business had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.21 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The company’s revenue for the quarter was up 14.0% on a year-over-year basis. During the same period in the prior year, the business posted ($0.06) EPS. Roku has set its Q4 2025 guidance at EPS. As a group, equities research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Anthony J. Wood sold 50,000 shares of the business’s stock in a transaction dated Monday, November 10th. The stock was sold at an average price of $103.86, for a total transaction of $5,193,000.00. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 507,463 shares of company stock worth $53,126,637. 13.98% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ROKU. Berkshire Capital Holdings Inc. increased its position in shares of Roku by 1,413,400.0% in the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company’s stock valued at $9,957,000 after buying an additional 141,340 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Roku in the 1st quarter worth about $6,026,000. Atika Capital Management LLC acquired a new stake in Roku in the 1st quarter valued at about $5,086,000. West Tower Group LLC grew its stake in Roku by 128.6% in the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock valued at $703,000 after acquiring an additional 4,500 shares during the last quarter. Finally, Blair William & Co. IL increased its holdings in Roku by 14.7% during the 1st quarter. Blair William & Co. IL now owns 45,727 shares of the company’s stock valued at $3,221,000 after acquiring an additional 5,869 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

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.