Roku (NASDAQ:ROKU) Trading Down 2.4% – Time to Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 2.4% on Wednesday . The stock traded as low as $74.47 and last traded at $74.98. 887,504 shares traded hands during mid-day trading, a decline of 80% from the average session volume of 4,355,405 shares. The stock had previously closed at $76.79.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Wedbush reissued an “outperform” rating and set a $75.00 price objective on shares of Roku in a research report on Friday, August 2nd. Macquarie lifted their price target on shares of Roku from $72.00 to $90.00 and gave the company an “outperform” rating in a research report on Thursday, October 3rd. Bank of America upped their price objective on shares of Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Needham & Company LLC restated a “buy” rating and issued a $100.00 price target on shares of Roku in a research note on Tuesday. Finally, JPMorgan Chase & Co. increased their target price on Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 10th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and twelve have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $81.24.

Roku Trading Down 4.8 %

The stock has a market capitalization of $10.57 billion, a PE ratio of -21.61 and a beta of 2.08. The stock has a 50 day moving average price of $71.40 and a 200-day moving average price of $63.08.

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

Insider Buying and Selling at Roku

In other news, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction 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 owns 38,602 shares in the company, valued at $2,485,582.78. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction on Wednesday, September 4th. The stock was 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 in the company, valued at approximately $2,485,582.78. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Thursday, October 10th. The stock was sold at an average price of $77.20, for a total value of $1,930,000.00. Following the completion of the sale, the chief executive officer now owns 5,020 shares of the company’s stock, valued at approximately $387,544. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 69,566 shares of company stock valued at $5,254,000. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several large investors have recently added to or reduced their stakes in ROKU. Sumitomo Mitsui Trust Holdings Inc. raised its position in shares of Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock valued at $478,939,000 after purchasing an additional 1,457,925 shares during the period. Nikko Asset Management Americas Inc. lifted its position in shares of Roku by 25.8% in the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock valued at $462,108,000 after acquiring an additional 1,455,408 shares in the last quarter. Canada Pension Plan Investment Board boosted its stake in shares of Roku by 138.1% in the first quarter. Canada Pension Plan Investment Board now owns 342,400 shares of the company’s stock worth $22,314,000 after acquiring an additional 198,600 shares during the period. AQR Capital Management LLC grew its position in shares of Roku by 645.3% during the second quarter. AQR Capital Management LLC now owns 221,557 shares of the company’s stock worth $13,278,000 after purchasing an additional 191,831 shares in the last quarter. Finally, ARK Investment Management LLC raised its stake in Roku by 1.3% during the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock valued at $762,096,000 after purchasing an additional 159,785 shares during the period. Hedge funds and other 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.