Roku (NASDAQ:ROKU) Trading Down 4.4% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU) shares fell 4.4% during trading on Friday . The stock traded as low as $78.80 and last traded at $79.35. 1,263,902 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 2,893,622 shares. The stock had previously closed at $83.00.

Wall Street Analyst Weigh In

ROKU has been the subject of several recent research reports. UBS Group began coverage on shares of Roku in a research report on Friday, November 22nd. They issued a “neutral” rating and a $73.00 price objective for the company. Morgan Stanley boosted their target price on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Benchmark reissued a “buy” rating and issued a $105.00 price target on shares of Roku in a report on Thursday, September 12th. Macquarie reaffirmed an “outperform” rating and set a $90.00 price target on shares of Roku in a report on Thursday, October 31st. Finally, JPMorgan Chase & Co. increased their target price on shares of Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, October 10th. Three analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $82.62.

Roku Stock Down 2.7 %

The stock has a market capitalization of $11.72 billion, a P/E ratio of -67.28 and a beta of 2.05. The firm has a 50-day moving average of $75.99 and a 200 day moving average of $69.89.

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

Insider Activity

In other Roku news, CAO Matthew C. Banks sold 8,693 shares of the business’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total transaction of $76,250.00. Following the completion of the transaction, the chief financial officer now directly owns 53,267 shares in the company, valued at $4,061,608.75. This trade represents a 1.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 48,095 shares of company stock valued at $3,731,038 over the last three months. 13.98% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Choreo LLC bought a new position in Roku during the second quarter worth about $324,000. American Century Companies Inc. raised its position in shares of Roku by 3.5% in the 2nd quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock valued at $1,549,000 after acquiring an additional 877 shares during the period. Jupiter Asset Management Ltd. boosted its stake in Roku by 279.5% during the 2nd quarter. Jupiter Asset Management Ltd. now owns 175,645 shares of the company’s stock worth $10,526,000 after acquiring an additional 129,360 shares during the last quarter. DekaBank Deutsche Girozentrale grew its holdings in Roku by 6.6% during the second quarter. DekaBank Deutsche Girozentrale now owns 16,430 shares of the company’s stock valued at $982,000 after purchasing an additional 1,022 shares during the period. Finally, Federated Hermes Inc. increased its stake in Roku by 32.6% in the second quarter. Federated Hermes Inc. now owns 1,695 shares of the company’s stock valued at $102,000 after purchasing an additional 417 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.