Roku (NASDAQ:ROKU) Shares Down 0.3% – Here’s Why

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 0.3% on Wednesday . The stock traded as low as $84.40 and last traded at $85.48. Approximately 848,918 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 3,672,946 shares. The stock had previously closed at $85.76.

Analysts Set New Price Targets

ROKU has been the subject of a number of research analyst reports. Bank of America lifted their target price on Roku from $90.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, February 14th. Citizens Jmp upgraded shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Macquarie reaffirmed an “outperform” rating and set a $90.00 target price on shares of Roku in a research report on Thursday, October 31st. Wedbush restated an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Monday, February 10th. Finally, Needham & Company LLC restated a “buy” rating and set a $100.00 target price on shares of Roku in a research report on Tuesday, January 7th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $96.00.

Roku Stock Performance

The firm has a market capitalization of $12.39 billion, a price-to-earnings ratio of -95.75 and a beta of 2.05. The business has a fifty day moving average price of $81.88 and a 200 day moving average price of $75.77.

Roku (NASDAQ:ROKU) last released its 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. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. On average, analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief executive officer now owns 26,538 shares in the company, valued at $2,116,936.26. This represents a 48.51 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Dan Jedda sold 2,000 shares of Roku stock in a transaction dated Tuesday, February 18th. The shares were sold at an average price of $99.95, for a total transaction of $199,900.00. Following the sale, the chief financial officer now owns 56,555 shares in the company, valued at approximately $5,652,672.25. This trade represents a 3.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 109,421 shares of company stock valued at $9,660,786. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Geneos Wealth Management Inc. grew its stake in shares of Roku by 369.9% during the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock worth $25,000 after purchasing an additional 270 shares during the period. Vision Financial Markets LLC bought a new position in Roku during the fourth quarter worth about $30,000. Raelipskie Partnership acquired a new stake in Roku during the 3rd quarter valued at $32,000. Game Plan Financial Advisors LLC bought a new stake in Roku in the 4th quarter valued at $37,000. Finally, Harvest Fund Management Co. Ltd boosted its stake in shares of Roku by 4,091.7% in the fourth quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after buying an additional 491 shares during the period. 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.