Roku (NASDAQ:ROKU) Shares Down 1.6% – Here’s What Happened

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

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the company. Benchmark restated a “buy” rating and set a $105.00 price target on shares of Roku in a report on Thursday, September 12th. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target for the company in a research note on Thursday, September 12th. Rosenblatt Securities cut their price objective on shares of Roku from $89.00 to $61.00 and set a “neutral” rating on the stock in a research report on Friday, August 2nd. Bank of America boosted their target price on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Finally, Wells Fargo & Company raised Roku from an “underweight” rating to an “equal weight” rating and raised their price objective for the company from $50.00 to $72.00 in a research note on Thursday, September 5th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $81.24.

Roku Trading Down 2.7 %

The firm has a market capitalization of $11.11 billion, a P/E ratio of -22.39 and a beta of 2.08. The stock’s 50-day simple moving average is $69.11 and its 200-day simple moving average is $62.52.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.21. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The firm had revenue of $968.18 million for the quarter, compared to the consensus estimate of $937.78 million. During the same quarter in the previous year, the business earned ($0.76) EPS. The company’s revenue was up 14.3% compared to the same quarter last year. On average, equities research analysts expect that Roku, Inc. will post -1.44 EPS for the current year.

Insider Transactions at Roku

In other news, insider Gilbert Fuchsberg sold 1,693 shares of the business’s stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total value of $109,012.27. Following the transaction, the insider now owns 38,602 shares in the company, valued at $2,485,582.78. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the completion of the transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $376,500. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the completion of the sale, the insider now directly owns 38,602 shares in the company, valued at $2,485,582.78. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 68,566 shares of company stock worth $5,177,750 in the last 90 days. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently bought and sold shares of the company. ARK Investment Management LLC raised its stake in shares of 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 buying an additional 159,785 shares during the period. Vanguard Group Inc. lifted its holdings in Roku by 0.8% during the first quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock valued at $778,560,000 after purchasing an additional 92,658 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in Roku by 24.7% during the first 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 during the last quarter. Nikko Asset Management Americas Inc. boosted its position in Roku by 25.8% during the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after purchasing an additional 1,455,408 shares during the period. Finally, Bank of New York Mellon Corp increased its stake in shares of Roku by 5.2% in the second quarter. Bank of New York Mellon Corp now owns 500,794 shares of the company’s stock worth $30,013,000 after purchasing an additional 24,926 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

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.