Roku (NASDAQ:ROKU) Stock Price Down 5% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 5% on Friday . The company traded as low as $74.77 and last traded at $75.53. Approximately 669,683 shares changed hands during mid-day trading, a decline of 85% from the average daily volume of 4,322,592 shares. The stock had previously closed at $79.48.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on ROKU. Citigroup increased their target price on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a research note on Wednesday, September 25th. Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and increased their price target for the stock from $70.00 to $90.00 in a research report on Monday, November 18th. Benchmark restated a “buy” rating and issued a $105.00 price objective on shares of Roku in a research report on Thursday, September 12th. Bank of America increased 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, Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Trading Down 5.7 %

The firm has a market cap of $10.89 billion, a price-to-earnings ratio of -62.48 and a beta of 2.06. The stock’s fifty day moving average price is $75.48 and its 200-day moving average price is $68.31.

Roku (NASDAQ:ROKU) last posted its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company’s revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the business earned ($2.33) earnings per share. Analysts predict that Roku, Inc. will post -1.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Charles Collier sold 10,771 shares of the business’s stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the sale, the insider now owns 3,790 shares in the company, valued at approximately $269,620.60. The trade was a 73.97 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 73,096 shares of company stock valued at $5,661,223 over the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roku

Several large investors have recently added to or reduced their stakes in ROKU. Raelipskie Partnership acquired a new position in shares of Roku in the third quarter worth $32,000. Future Financial Wealth Managment LLC acquired a new position in Roku during the 3rd quarter worth $43,000. GS Investments Inc. increased its holdings in Roku by 33.4% during the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after purchasing an additional 147 shares during the period. EverSource Wealth Advisors LLC raised its position in Roku by 123.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares in the last quarter. Finally, Cedar Wealth Management LLC purchased a new position in shares of Roku in the 2nd quarter valued at about $48,000. 86.30% of the stock is owned by hedge funds and other 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.