Roku (NASDAQ:ROKU) Trading Down 2% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s share price fell 2% during mid-day trading on Friday . The company traded as low as $89.90 and last traded at $90.91. 611,108 shares traded hands during trading, a decline of 83% from the average session volume of 3,680,575 shares. The stock had previously closed at $92.79.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on ROKU. Wells Fargo & Company upgraded shares of Roku from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $74.00 to $129.00 in a research note on Friday, February 14th. Loop Capital raised their price target 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 lowered shares of Roku from a “neutral” rating to a “sell” rating and set a $55.00 price objective on the stock. in a report on Friday, January 10th. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and increased their price objective for the stock from $65.00 to $125.00 in a research report on Friday, February 14th. Finally, Bank of America boosted their target price on Roku from $90.00 to $120.00 and gave the company a “buy” rating in a research report on Friday, February 14th. Two research analysts have rated the stock with a sell rating, six have given a hold rating, fourteen have given a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $96.00.

Roku Trading Down 4.2 %

The stock has a market capitalization of $12.97 billion, a PE ratio of -99.84 and a beta of 2.05. The stock’s fifty day simple moving average is $81.67 and its 200-day simple moving average is $75.14.

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

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of the business’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total value 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction dated Friday, January 10th. The stock was sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,116,936.26. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 109,421 shares of company stock worth $9,660,786 in the last 90 days. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently modified their holdings of ROKU. FMR LLC increased its position in Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after buying an additional 4,613,570 shares during the last quarter. Marshall Wace LLP lifted its position in shares of Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after buying an additional 2,030,036 shares during the last quarter. Holocene Advisors LP bought a new position in shares of Roku during the 3rd quarter worth $129,015,000. Cadian Capital Management LP purchased a new stake in Roku in the 4th quarter worth about $87,632,000. Finally, Jacobs Levy Equity Management Inc. raised its stake in Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock valued at $96,402,000 after acquiring an additional 1,082,548 shares during the period. Institutional investors own 86.30% of the company’s stock.

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.