Roku (NASDAQ:ROKU) Trading Down 1.8% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) dropped 1.8% on Monday . The stock traded as low as $77.01 and last traded at $77.75. Approximately 565,804 shares changed hands during trading, a decline of 81% from the average daily volume of 2,904,740 shares. The stock had previously closed at $79.19.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on the stock. Wells Fargo & Company upped their price target on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 31st. Robert W. Baird raised Roku from a “neutral” rating to an “outperform” rating and lifted their target price for the stock from $70.00 to $90.00 in a research report on Monday, November 18th. Loop Capital raised their price objective on shares of Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a report on Monday, December 9th. Moffett Nathanson cut shares of Roku from a “neutral” rating to a “sell” rating and set a $55.00 target price on the stock. in a report on Friday. Finally, Rosenblatt Securities upped their price objective on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $82.62.

Roku Stock Down 2.7 %

The stock’s 50-day simple moving average is $76.26 and its 200 day simple moving average is $70.26. The stock has a market capitalization of $11.19 billion, a price-to-earnings ratio of -64.23 and a beta of 2.05.

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

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $82.73, for a total value of $82,730.00. Following the completion of the transaction, the chief financial officer now owns 64,555 shares in the company, valued at $5,340,635.15. This represents a 1.53 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the business’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 completion of the sale, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $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. Over the last three months, insiders have sold 48,095 shares of company stock worth $3,731,038. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently bought and sold shares of the business. Choreo LLC acquired a new stake in Roku during the 2nd quarter valued at $324,000. American Century Companies Inc. raised its position in shares of Roku by 3.5% in the second quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock valued at $1,549,000 after purchasing an additional 877 shares during the period. DekaBank Deutsche Girozentrale lifted its stake in shares of Roku by 6.6% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 16,430 shares of the company’s stock worth $982,000 after buying an additional 1,022 shares during the last quarter. Federated Hermes Inc. boosted its holdings in shares of Roku by 32.6% during the 2nd quarter. Federated Hermes Inc. now owns 1,695 shares of the company’s stock worth $102,000 after buying an additional 417 shares during the period. Finally, Thoroughbred Financial Services LLC grew its stake in Roku by 13.9% in the 2nd quarter. Thoroughbred Financial Services LLC now owns 11,705 shares of the company’s stock valued at $701,000 after buying an additional 1,425 shares during the last quarter. 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.