Roku (NASDAQ:ROKU) Shares Down 0.7% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 0.7% during mid-day trading on Wednesday . The stock traded as low as $73.46 and last traded at $74.34. Approximately 1,683,982 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 4,310,560 shares. The stock had previously closed at $74.89.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on ROKU shares. Needham & Company LLC reissued a “buy” rating and set a $100.00 target price on shares of Roku in a research report on Wednesday, December 4th. Citigroup raised their target price on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Loop Capital upped their price target on shares of Roku from $70.00 to $80.00 and gave the company a “hold” rating in a report on Monday, December 9th. 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. Finally, JPMorgan Chase & Co. upped their target price on Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a research note on Thursday, October 10th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Stock Up 0.2 %

The company has a market cap of $10.82 billion, a PE ratio of -62.07 and a beta of 2.06. The firm has a 50 day simple moving average of $75.35 and a 200-day simple moving average of $68.96.

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

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the 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 transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at approximately $387,544. This represents a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. This trade represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 72,885 shares of company stock valued at $5,645,259. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently modified their holdings of the stock. Holocene Advisors LP purchased a new position in Roku in the third quarter valued at $129,015,000. Kessler Investment Group LLC increased its stake in shares of Roku by 21.8% in the 3rd quarter. Kessler Investment Group LLC now owns 75,968 shares of the company’s stock valued at $5,672,000 after purchasing an additional 13,590 shares in the last quarter. National Bank of Canada FI raised its holdings in Roku by 11,626.3% in the 3rd quarter. National Bank of Canada FI now owns 150,800 shares of the company’s stock worth $11,259,000 after purchasing an additional 149,514 shares during the period. EULAV Asset Management raised its holdings in Roku by 59.1% in the 3rd quarter. EULAV Asset Management now owns 183,000 shares of the company’s stock worth $13,663,000 after purchasing an additional 68,000 shares during the period. Finally, Granite Bay Wealth Management LLC purchased a new position in Roku during the second quarter worth approximately $1,142,000. 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.