Roku (NASDAQ:ROKU) Trading Down 3% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 3% on Wednesday . The stock traded as low as $78.61 and last traded at $79.28. 524,843 shares were traded during mid-day trading, a decline of 86% from the average session volume of 3,678,164 shares. The stock had previously closed at $81.73.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. Citizens Jmp raised shares of Roku to a “strong-buy” rating in a research note on Tuesday, January 21st. Loop Capital boosted their price objective on shares of Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a research note on Monday, December 9th. Citigroup upgraded Roku from a “neutral” rating to an “outperform” rating in a research note on Sunday. Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and increased their price objective for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. Finally, Wedbush reissued an “outperform” rating and set a $100.00 target price on shares of Roku in a research report on Monday, February 10th. One investment analyst has rated the stock with a sell rating, six have assigned a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $97.67.

Roku Price Performance

The firm has a market cap of $11.41 billion, a price-to-earnings ratio of -87.78 and a beta of 2.12. The business has a fifty day simple moving average of $81.12 and a 200 day simple moving average of $77.54.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. On average, research analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 4,600 shares of the stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $345,000.00. Following the sale, the chief executive officer now owns 6,243 shares of the company’s stock, valued at approximately $468,225. This represents a 42.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Dan Jedda sold 5,000 shares of the company’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the sale, the chief financial officer now owns 58,555 shares in the company, valued at approximately $5,878,922. This trade represents a 7.87 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 97,908 shares of company stock valued at $8,633,436 over the last ninety days. Company insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in ROKU. Farther Finance Advisors LLC raised its holdings in Roku by 23.9% during the fourth quarter. Farther Finance Advisors LLC now owns 627 shares of the company’s stock worth $47,000 after purchasing an additional 121 shares in the last quarter. United Advisor Group LLC lifted its stake in Roku by 0.9% in the 4th quarter. United Advisor Group LLC now owns 14,430 shares of the company’s stock valued at $1,073,000 after buying an additional 130 shares in the last quarter. Cerity Partners LLC boosted its stake in shares of Roku by 0.5% during the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company’s stock valued at $1,984,000 after acquiring an additional 145 shares during the last quarter. True Vision MN LLC grew its holdings in shares of Roku by 3.1% during the third quarter. True Vision MN LLC now owns 5,018 shares of the company’s stock worth $375,000 after buying an additional 152 shares in the last quarter. Finally, Richard W. Paul & Associates LLC raised its holdings in Roku by 1.1% in the 4th quarter. Richard W. Paul & Associates LLC now owns 15,997 shares of the company’s stock valued at $1,189,000 after acquiring an additional 177 shares during the last quarter. Hedge funds and other institutional investors 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.