Roku (NASDAQ:ROKU) Trading Down 6.2% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) was down 6.2% on Thursday . The stock traded as low as $58.64 and last traded at $59.91. Approximately 1,732,119 shares were traded during trading, a decline of 54% from the average daily volume of 3,775,323 shares. The stock had previously closed at $63.86.

Wall Street Analyst Weigh In

ROKU has been the topic of several research reports. Citizens Jmp upgraded Roku to a “strong-buy” rating in a research note on Tuesday, January 21st. Pivotal Research raised Roku from a “hold” rating to a “buy” rating and raised their price target for the stock from $65.00 to $125.00 in a report on Friday, February 14th. Needham & Company LLC reiterated a “buy” rating and set a $120.00 price objective on shares of Roku in a research note on Monday, March 24th. Rosenblatt Securities restated a “neutral” rating and issued a $86.00 target price on shares of Roku in a research note on Thursday, February 13th. Finally, Moffett Nathanson raised shares of Roku from a “sell” rating to a “neutral” rating and set a $70.00 price target on the stock in a report on Tuesday, March 4th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, eighteen have given a buy rating and three have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $96.70.

Roku Price Performance

The stock has a market cap of $8.68 billion, a PE ratio of -67.23 and a beta of 2.17. The business has a 50 day moving average price of $77.29 and a two-hundred day moving average price of $76.79.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.44) by $0.20. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The firm had revenue of $1.20 billion for the quarter, compared to analysts’ expectations of $1.15 billion. On average, sell-side analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $87.93, for a total value of $2,198,250.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,333,486.34. The trade was a 48.51 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Dan Jedda sold 5,000 shares of the business’s stock in a transaction on Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the transaction, the chief financial officer now owns 58,555 shares of the company’s stock, valued at $5,878,922. This represents a 7.87 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 97,905 shares of company stock worth $8,632,306. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Merit Financial Group LLC boosted its stake in shares of Roku by 17.2% in the 1st quarter. Merit Financial Group LLC now owns 10,111 shares of the company’s stock worth $712,000 after buying an additional 1,487 shares during the last quarter. O Keefe Stevens Advisory Inc. boosted its holdings in Roku by 27.5% in the 1st quarter. O Keefe Stevens Advisory Inc. now owns 4,965 shares of the company’s stock worth $350,000 after buying an additional 1,072 shares during the period. Parallel Advisors LLC grew its position in shares of Roku by 140.0% during the first quarter. Parallel Advisors LLC now owns 2,141 shares of the company’s stock worth $151,000 after purchasing an additional 1,249 shares in the last quarter. GAMMA Investing LLC raised its position in shares of Roku by 14,242.3% during the first quarter. GAMMA Investing LLC now owns 67,552 shares of the company’s stock valued at $4,758,000 after buying an additional 67,081 shares during the last quarter. Finally, Versant Capital Management Inc boosted its holdings in shares of Roku by 283.2% during the 1st quarter. Versant Capital Management Inc now owns 3,644 shares of the company’s stock valued at $257,000 after purchasing an additional 2,693 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.