Roku (NASDAQ:ROKU) Shares Down 0.1% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price was down 0.1% on Thursday . The company traded as low as $77.55 and last traded at $78.39. Approximately 631,601 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 4,365,909 shares. The stock had previously closed at $78.49.

Wall Street Analysts Forecast Growth

ROKU has been the topic of several analyst reports. Rosenblatt Securities lifted their target price 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. Bank of America boosted their target price on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Benchmark reissued a “buy” rating and set a $105.00 price target on shares of Roku in a research report on Thursday, September 12th. Jefferies Financial Group dropped their target price on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research report on Friday, November 1st. Finally, Loop Capital upped their price objective on Roku from $70.00 to $80.00 and gave the stock a “hold” rating in a research note on Monday, December 9th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $83.81.

Roku Price Performance

The firm has a market capitalization of $11.70 billion, a PE ratio of -67.16 and a beta of 2.06. The firm has a fifty day moving average price of $75.32 and a 200 day moving average price of $67.71.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the prior year, the company posted ($2.33) earnings per share. Roku’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, sell-side analysts expect that Roku, Inc. will post -1.1 EPS for the current year.

Insiders Place Their Bets

In related news, insider Charles Collier sold 10,771 shares of Roku stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the sale, the insider now owns 3,790 shares of the company’s stock, valued at approximately $269,620.60. This trade represents a 73.97 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction that occurred on Monday, December 16th. The shares were sold at an average price of $82.73, for a total value of $82,730.00. Following the transaction, the chief financial officer now directly owns 64,555 shares of the company’s stock, valued at $5,340,635.15. This trade represents a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 73,096 shares of company stock valued at $5,661,223. 13.98% of the stock is currently owned by corporate insiders.

Institutional Trading of Roku

Institutional investors have recently modified their holdings of the stock. FMR LLC boosted its position in Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after buying an additional 244,793 shares in the last quarter. ARK Investment Management LLC boosted its position in shares of Roku by 1.3% during the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after purchasing an additional 159,785 shares in the last quarter. Holocene Advisors LP acquired a new position in shares of Roku during the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP raised 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. Finally, Charles Schwab Investment Management Inc. grew its position in Roku by 3.2% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 955,969 shares of the company’s stock worth $71,373,000 after purchasing an additional 30,038 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors.

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.