Roku (NASDAQ:ROKU) Trading Down 2.1% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price was down 2.1% during mid-day trading on Friday . The company traded as low as $74.29 and last traded at $74.42. Approximately 584,102 shares traded hands during trading, a decline of 84% from the average daily volume of 3,673,171 shares. The stock had previously closed at $76.05.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on ROKU shares. Needham & Company LLC restated a “buy” rating and set a $120.00 price objective on shares of Roku in a research note on Monday, March 24th. JPMorgan Chase & Co. increased their price objective on shares of Roku from $92.00 to $115.00 and gave the stock an “overweight” rating in a report on Friday, February 14th. FBN Securities began coverage on shares of Roku in a research note on Friday. They set an “outperform” rating and a $93.00 target price for the company. Loop Capital raised their price target on shares of Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. Finally, Compass Point assumed coverage on Roku in a research report on Sunday, March 23rd. They set a “buy” rating for the company. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, seventeen have issued a buy rating and three have given a strong buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $96.55.

Roku Stock Performance

The firm has a market capitalization of $10.58 billion, a P/E ratio of -81.45 and a beta of 2.12. The firm has a 50 day moving average price of $81.10 and a two-hundred day moving average price of $77.67.

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

Insider Activity

In related news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the transaction, the chief financial officer now directly owns 63,555 shares of the company’s stock, valued at approximately $4,905,174.90. The trade was a 1.55 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of Roku stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the transaction, the chief accounting officer now directly owns 7,256 shares in the company, valued at approximately $583,092.16. This trade represents a 20.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 97,908 shares of company stock worth $8,633,436 over the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Citigroup Inc. grew its holdings in shares of Roku by 73.0% during the 3rd quarter. Citigroup Inc. now owns 101,529 shares of the company’s stock valued at $7,580,000 after acquiring an additional 42,837 shares in the last quarter. Cerity Partners LLC boosted its position in Roku by 11.1% during the third quarter. Cerity Partners LLC now owns 26,534 shares of the company’s stock valued at $1,981,000 after purchasing an additional 2,644 shares during the last quarter. Rockefeller Capital Management L.P. grew its stake in Roku by 37.3% in the third quarter. Rockefeller Capital Management L.P. now owns 505,429 shares of the company’s stock valued at $37,735,000 after purchasing an additional 137,259 shares in the last quarter. PDT Partners LLC increased its position in Roku by 152.4% in the 3rd quarter. PDT Partners LLC now owns 79,008 shares of the company’s stock worth $5,899,000 after purchasing an additional 47,700 shares during the last quarter. Finally, JAT Capital Mgmt LP lifted its holdings in shares of Roku by 470.2% during the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after buying an additional 445,777 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

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.