Roku (NASDAQ:ROKU) Shares Gap Down on Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price gapped down prior to trading on Wednesday after an insider sold shares in the company. The stock had previously closed at $73.61, but opened at $67.99. Roku shares last traded at $69.41, with a volume of 2,268,725 shares traded.

Specifically, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 10,771 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.14, for a total transaction of $766,248.94. Following the completion of the transaction, the insider now owns 3,790 shares in the company, valued at $269,620.60. The trade was a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total value of $75,000.00. Following the transaction, the chief financial officer now owns 65,555 shares in the company, valued at $4,916,625. This trade represents a 1.50 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. Piper Sandler lifted their price objective on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. JPMorgan Chase & Co. increased their price objective on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, October 10th. Rosenblatt Securities boosted their target price on shares of Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Macquarie restated an “outperform” rating and set a $90.00 price objective on shares of Roku in a report on Thursday, October 31st. Finally, Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price for the company in a research note on Tuesday, October 1st. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Roku has an average rating of “Moderate Buy” and a consensus target price of $84.67.

Roku Stock Up 0.3 %

The stock has a market capitalization of $10.01 billion, a price-to-earnings ratio of -57.55 and a beta of 2.07. The stock’s 50-day simple moving average is $74.66 and its 200 day simple moving average is $64.97.

Roku (NASDAQ:ROKU) last announced its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The business had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same period in the previous year, the business earned ($2.33) EPS. Roku’s revenue was up 16.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Roku, Inc. will post -1.1 earnings per share for the current year.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently made changes to their positions in the business. FMR LLC grew its holdings in Roku by 1.7% during the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after acquiring an additional 244,793 shares during the last quarter. ARK Investment Management LLC increased its holdings in shares of Roku by 1.3% in the second 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 in the last quarter. Vanguard Group Inc. raised its position in Roku by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock worth $778,560,000 after purchasing an additional 92,658 shares during the last quarter. Holocene Advisors LP acquired a new position in Roku during the 3rd quarter worth $129,015,000. Finally, Westfield Capital Management Co. LP boosted its position in Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after buying an additional 856,401 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.