Roku (NASDAQ:ROKU) Stock Price Down 4.3% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) fell 4.3% on Monday . The company traded as low as $73.31 and last traded at $73.74. 549,688 shares traded hands during trading, a decline of 87% from the average session volume of 4,313,999 shares. The stock had previously closed at $77.03.

Analysts Set New Price Targets

A number of brokerages have recently commented on ROKU. Benchmark reaffirmed a “buy” rating and set a $105.00 target price on shares of Roku in a report on Thursday, September 12th. Rosenblatt Securities raised their price objective on shares of Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Macquarie reaffirmed an “outperform” rating and set a $90.00 target price on shares of Roku in a report on Thursday, October 31st. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a report on Thursday, September 12th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $100.00 price objective (up previously from $85.00) on shares of Roku in a report on Friday, December 6th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $83.81.

Roku Stock Down 2.5 %

The stock has a 50-day moving average of $75.42 and a 200 day moving average of $68.60. The stock has a market cap of $10.91 billion, a PE ratio of -62.60 and a beta of 2.06.

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

Insider Activity

In other news, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction on Monday, November 18th. The stock was 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 represents a 54.48 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the sale, the chief financial officer now directly owns 53,267 shares of the company’s stock, valued at $4,061,608.75. The trade was a 1.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 73,096 shares of company stock valued at $5,661,223 in the last 90 days. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors have recently bought and sold shares of ROKU. Bank of New York Mellon Corp grew its holdings in shares of Roku by 5.2% in the second quarter. Bank of New York Mellon Corp now owns 500,794 shares of the company’s stock valued at $30,013,000 after purchasing an additional 24,926 shares in the last quarter. Panagora Asset Management Inc. increased its position in shares of Roku by 25.5% during the second quarter. Panagora Asset Management Inc. now owns 14,456 shares of the company’s stock worth $866,000 after acquiring an additional 2,940 shares during the period. International Assets Investment Management LLC acquired a new stake in shares of Roku in the second quarter valued at $80,000. nVerses Capital LLC boosted its holdings in Roku by 100.0% in the second quarter. nVerses Capital LLC now owns 3,200 shares of the company’s stock valued at $192,000 after purchasing an additional 1,600 shares during the period. Finally, AM Squared Ltd acquired a new position in Roku during the 2nd quarter worth $66,000. 86.30% of the stock is 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.