Roku (NASDAQ:ROKU) Trading Down 0.4% – Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 0.4% during trading on Tuesday . The stock traded as low as $78.01 and last traded at $79.58. Approximately 1,505,220 shares were traded during trading, a decline of 28% from the average daily volume of 2,099,451 shares. The stock had previously closed at $79.91.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Benchmark reissued a “buy” rating and issued a $105.00 price target on shares of Roku in a report on Thursday, September 12th. Bank of America lifted their price target on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Citigroup upped their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Baird R W raised Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Finally, Wells Fargo & Company boosted their target price on shares of Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a research report on Thursday, October 31st. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Roku has a consensus rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Stock Up 6.4 %

The stock has a market cap of $12.05 billion, a price-to-earnings ratio of -69.17 and a beta of 2.05. The company has a 50 day simple moving average of $75.61 and a 200 day simple moving average of $69.80.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm’s revenue was up 16.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($2.33) EPS. As a group, analysts predict that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other news, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction dated Monday, November 18th. The stock was 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 of the company’s stock, valued at approximately $518,940.16. This represents a 54.48 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the transaction, the chief financial officer now directly owns 65,555 shares in the company, valued at approximately $4,916,625. This represents a 1.50 % 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. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently bought and sold shares of the company. Holocene Advisors LP acquired a new stake in Roku during the 3rd quarter worth about $129,015,000. Westfield Capital Management Co. LP raised its holdings in shares of Roku by 126.1% during the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after purchasing an additional 856,401 shares during the period. Point72 Asset Management L.P. boosted its position in shares of Roku by 352.5% during the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP grew its stake in shares of Roku by 470.2% in 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 period. Finally, FMR LLC increased its position in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after buying an additional 244,793 shares in 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.