Roku (NASDAQ:ROKU) Stock Price Down 3% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shares were down 3% 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 Analysts Forecast Growth

ROKU has been the topic of a number of research reports. Rosenblatt Securities reduced their price target on shares of Roku from $89.00 to $61.00 and set a “neutral” rating on the stock in a report on Friday, August 2nd. Moffett Nathanson upgraded Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a research report on Tuesday, October 1st. Guggenheim upgraded Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a report on Friday, August 23rd. Citigroup upped their price objective on Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Finally, Bank of America raised their target price on shares of 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 assigned a hold rating and twelve have assigned a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $81.24.

Roku Price Performance

The stock has a market capitalization of $11.10 billion, a P/E ratio of -19.47 and a beta of 2.08. The stock’s fifty day moving average price is $70.53 and its 200 day moving average price is $62.84.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, August 1st. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.21. Roku had a negative net margin of 13.16% and a negative return on equity of 21.03%. The business had revenue of $968.18 million for the quarter, compared to the consensus estimate of $937.78 million. During the same period in the prior year, the firm earned ($0.76) EPS. The company’s revenue for the quarter was up 14.3% compared to the same quarter last year. On average, sell-side analysts expect that Roku, Inc. will post -1.44 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Charles Collier sold 15,454 shares of the stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the transaction, the insider now owns 200 shares of the company’s stock, valued at approximately $15,000. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total transaction of $109,012.27. Following the transaction, the insider now directly owns 38,602 shares of the company’s stock, valued at $2,485,582.78. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Charles Collier sold 15,454 shares of the business’s stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now directly owns 200 shares of the company’s stock, valued at $15,000. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 69,566 shares of company stock worth $5,254,000 in the last ninety days. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently added to or reduced their stakes in the company. ARK Investment Management LLC grew its position in shares of Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after buying an additional 159,785 shares during the last quarter. Vanguard Group Inc. increased its position in Roku by 0.8% during the 1st quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock valued at $778,560,000 after buying an additional 92,658 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its stake in Roku by 24.7% in the first quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock valued at $478,939,000 after buying an additional 1,457,925 shares during the last quarter. Nikko Asset Management Americas Inc. boosted its holdings in Roku by 25.8% in the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after acquiring an additional 1,455,408 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in shares of Roku by 5.2% during the second quarter. Bank of New York Mellon Corp now owns 500,794 shares of the company’s stock worth $30,013,000 after acquiring an additional 24,926 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

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.