Roku (NASDAQ:ROKU) Share Price Crosses Below 50 Day Moving Average – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s share price passed below its fifty day moving average during trading on Friday. The stock has a fifty day moving average of $155.15 and traded as low as $154.43. Roku shares last traded at $155.12, with a volume of 3,977,128 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on ROKU shares. JPMorgan Chase & Co. initiated coverage on shares of Roku in a research note on Monday, August 24th. They issued a “neutral” rating and a $160.00 target price for the company. Weiss Ratings raised Roku from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, October 8th. Zacks Research upgraded Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. UBS Group upped their price objective on Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Finally, Needham & Company LLC reaffirmed a “buy” rating on shares of Roku in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and eighteen have assigned a Hold rating to the company. Based on data from MarketBeat, Roku presently has a consensus rating of “Hold” and an average price target of $156.17.

Roku Stock Performance

The stock has a market capitalization of $23.02 billion, a P/E ratio of 66.29 and a beta of 2.05. The company’s fifty day simple moving average is $155.15 and its two-hundred day simple moving average is $127.57.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%. The company had revenue of $1.35 billion during the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the company posted $0.07 earnings per share. The business’s revenue was up 21.9% on a year-over-year basis. On average, research analysts predict that Roku, Inc. will post 2.97 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In related news, Director Neil Hunt sold 2,000 shares of the business’s stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $151.09, for a total value of $302,180.00. Following the completion of the sale, the director directly owned 9,629 shares in the company, valued at $1,454,845.61. The trade was a 17.20% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 4,824 shares of the company’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total value of $750,807.36. Following the completion of the transaction, the insider directly owned 40,168 shares in the company, valued at approximately $6,251,747.52. This represents a 10.72% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 119,285 shares of company stock worth $18,224,865 in the last 90 days. Company insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently modified their holdings of ROKU. Moran Wealth Management LLC acquired a new position in Roku during the first quarter worth about $2,990,000. Bank of New York Mellon Corp bought a new position in shares of Roku in the second quarter worth about $105,216,000. Contravisory Investment Management Inc. acquired a new stake in shares of Roku in the 2nd quarter valued at approximately $1,184,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Roku in the 2nd quarter valued at approximately $4,474,000. Finally, California Public Employees Retirement System boosted its stake in shares of Roku by 14.8% in the 1st quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock valued at $24,674,000 after purchasing an additional 33,593 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.