Roku (NASDAQ:ROKU) Trading Down 2.7% – Here’s What Happened

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 2.7% during mid-day trading on Friday . The company traded as low as $120.66 and last traded at $122.26. 1,966,640 shares changed hands during trading, a decline of 35% from the average session volume of 3,042,151 shares. The stock had previously closed at $125.59.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to expand its free ad-supported streaming lineup, adding new channels including Sports Illustrated and FIFA Plus, plus four more free channels in June. That supports engagement on The Roku Channel and could improve ad inventory and viewing time. Article Title
• Positive Sentiment: The company also launched a $25 bundle pairing the Streaming Stick Plus with Fox One, which may help drive device sales and keep Roku’s ecosystem competitive. Article Title
• Positive Sentiment: Roku has been benefiting from a bullish narrative around its growing household reach and stronger live-sports positioning, which investors may see as supportive of future ad and platform revenue. Article Title

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on ROKU shares. Wedbush raised their price objective on Roku from $140.00 to $155.00 and gave the company an “outperform” rating in a research note on Friday, May 1st. Needham & Company LLC upped their target price on Roku from $110.00 to $140.00 and gave the company a “buy” rating in a report on Friday, May 1st. Pivotal Research restated a “buy” rating and issued a $160.00 price target (up from $140.00) on shares of Roku in a research report on Friday, May 1st. KeyCorp lifted their price target on Roku from $140.00 to $150.00 and gave the stock an “overweight” rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company boosted their price objective on shares of Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Twenty-two investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and a consensus target price of $145.29.

Roku Trading Down 2.7%

The business has a 50 day moving average of $115.32 and a 200-day moving average of $105.15. The stock has a market cap of $18.02 billion, a PE ratio of 91.93 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share 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 company 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 business posted ($0.19) earnings per share. Roku’s revenue was up 22.4% compared to the same quarter last year. On average, equities research analysts anticipate that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $128.79, for a total transaction of $9,659,250.00. The transaction 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 the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the completion of the transaction, the insider directly owned 50,863 shares of the company’s stock, valued at approximately $6,384,323.76. This represents a 15.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 696,631 shares of company stock valued at $77,636,680 in the last 90 days. Company insiders own 13.45% of the company’s stock.

Hedge Funds Weigh In On Roku

Institutional investors have recently added to or reduced their stakes in the business. Blue Trust Inc. grew its holdings in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new position in shares of Roku during the 4th quarter worth about $26,000. Bayban boosted its position in shares of Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after acquiring an additional 260 shares during the last quarter. WPG Advisers LLC acquired a new stake in shares of Roku in the fourth quarter worth approximately $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new stake in Roku in the fourth quarter valued at approximately $31,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.