Roku (NASDAQ:ROKU) Stock Price Down 3% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) dropped 3% during trading on Monday . The stock traded as low as $77.67 and last traded at $77.67. Approximately 520,318 shares were traded during trading, a decline of 88% from the average daily volume of 4,373,567 shares. The stock had previously closed at $80.07.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ROKU. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price objective on shares of Roku in a research note on Friday, September 13th. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a research report on Thursday, September 12th. Guggenheim raised Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a report on Friday, August 23rd. Benchmark restated a “buy” rating and issued a $105.00 target price on shares of Roku in a research note on Thursday, September 12th. Finally, Bank of America boosted their price target on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a report on Monday, September 30th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and twelve have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $81.24.

Roku Stock Down 3.8 %

The firm has a 50-day moving average price of $70.53 and a two-hundred day moving average price of $62.84. The firm has a market cap of $11.10 billion, a PE ratio of -19.47 and a beta of 2.08.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.45) by $0.21. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The company had revenue of $968.18 million for the quarter, compared to analyst estimates of $937.78 million. During the same quarter last year, the firm posted ($0.76) EPS. The firm’s revenue for the quarter was up 14.3% on a year-over-year basis. Research analysts forecast that Roku, Inc. will post -1.44 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total value of $76,250.00. Following the transaction, the chief financial officer now directly owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the completion of the sale, the chief financial officer now directly owns 53,267 shares of the company’s stock, valued at $4,061,608.75. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Charles Collier sold 15,454 shares of the business’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the transaction, the insider now directly owns 200 shares in the company, valued at approximately $15,000. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 69,566 shares of company stock worth $5,254,000. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently made changes to their positions in ROKU. EverSource Wealth Advisors LLC lifted its holdings in Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after acquiring an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC acquired a new position in shares of Roku in the 3rd quarter valued at $43,000. Geneos Wealth Management Inc. grew its holdings in shares of Roku by 835.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock worth $45,000 after purchasing an additional 610 shares during the period. Cedar Wealth Management LLC purchased a new stake in Roku in the 2nd quarter valued at about $48,000. Finally, Natixis acquired a new position in Roku in the first quarter valued at about $53,000. 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.