Roku (NASDAQ:ROKU) Shares Down 1.4% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 1.4% during mid-day trading on Tuesday . The stock traded as low as $68.14 and last traded at $68.22. 3,993,721 shares changed hands during mid-day trading, a decline of 10% from the average session volume of 4,421,414 shares. The stock had previously closed at $69.20.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent analyst reports. Benchmark restated a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Wells Fargo & Company raised their price target on shares of Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a research note on Thursday, October 31st. Rosenblatt Securities upped their target price on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. UBS Group assumed coverage on shares of Roku in a research report on Friday. They issued a “neutral” rating and a $73.00 price target on the stock. Finally, Jefferies Financial Group cut their target price on shares of Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Two equities research analysts have rated the stock with a sell rating, nine 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.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $84.14.

Roku Stock Down 1.4 %

The company has a fifty day moving average of $74.33 and a 200 day moving average of $65.19. The company has a market cap of $9.91 billion, a P/E ratio of -56.85 and a beta of 2.07.

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

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the completion of the transaction, the chief financial officer now directly owns 65,555 shares of the company’s stock, valued at approximately $4,916,625. The trade was a 1.50 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of the business’s stock in a transaction dated Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the sale, the insider now directly owns 38,602 shares of the company’s stock, valued at approximately $2,485,582.78. This trade represents a 4.20 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 90,240 shares of company stock worth $6,729,582 in the last quarter. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several hedge funds have recently bought and sold shares of ROKU. Raelipskie Partnership acquired a new position in Roku in the third quarter worth about $32,000. EverSource Wealth Advisors LLC grew its position in Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after purchasing an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new position in shares of Roku during the 3rd quarter worth approximately $43,000. GS Investments Inc. grew its position in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new position in Roku in the 2nd quarter valued at approximately $48,000. 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.