Roku (NASDAQ:ROKU) Shares Down 5.2% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 5.2% during trading on Friday . The company traded as low as $94.56 and last traded at $95.20. 4,308,811 shares were traded during mid-day trading, an increase of 49% from the average session volume of 2,899,690 shares. The stock had previously closed at $100.46.

Analyst Upgrades and Downgrades

ROKU has been the topic of a number of research analyst reports. Susquehanna reissued a “positive” rating and set a $130.00 price objective on shares of Roku in a research report on Friday, October 31st. Jefferies Financial Group raised Roku from a “hold” rating to a “buy” rating and upped their price target for the stock from $100.00 to $135.00 in a research note on Thursday, December 11th. Bank of America raised their price objective on Roku from $115.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, January 12th. Wedbush upped their target price on Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a research report on Thursday, December 11th. Finally, Citigroup reiterated an “outperform” rating on shares of Roku in a report on Friday, January 9th. Twenty-two equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Roku has an average rating of “Moderate Buy” and an average target price of $118.79.

Roku Trading Down 5.2%

The stock has a market capitalization of $14.07 billion, a PE ratio of -475.98 and a beta of 1.95. The stock’s fifty day simple moving average is $105.20 and its 200-day simple moving average is $98.93.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.21 billion. During the same period last year, the firm earned ($0.06) earnings per share. The firm’s revenue was up 14.0% on a year-over-year basis. As a group, analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Anthony J. Wood sold 75,000 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $109.61, for a total value of $8,220,750.00. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the sale, the insider directly owned 59,094 shares of the company’s stock, valued at $6,428,245.32. The trade was a 5.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 250,194 shares of company stock worth $26,511,472 in the last quarter. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC lifted its position in shares of Roku by 275.5% during the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after buying an additional 1,897,407 shares during the last quarter. Tableaux LLC bought a new stake in Roku in the 2nd quarter valued at about $1,746,000. Holocene Advisors LP lifted its holdings in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after purchasing an additional 1,285,585 shares during the last quarter. Acadian Asset Management LLC lifted its holdings in Roku by 41.2% during the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock valued at $236,545,000 after purchasing an additional 785,864 shares during the last quarter. Finally, Duquesne Family Office LLC boosted its position in Roku by 123.0% during the second quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company’s stock worth $96,723,000 after purchasing an additional 606,900 shares during the period. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.