Roku (NASDAQ:ROKU) Stock Price Down 5% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) dropped 5% on Friday . The stock traded as low as $74.77 and last traded at $75.53. Approximately 669,683 shares were traded during trading, a decline of 85% from the average daily volume of 4,322,592 shares. The stock had previously closed at $79.48.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ROKU. Macquarie reaffirmed an “outperform” rating and issued a $90.00 price target on shares of Roku in a report on Thursday, October 31st. Wedbush reaffirmed an “outperform” rating and issued a $100.00 target price (up from $85.00) on shares of Roku in a research report on Friday, December 6th. Wells Fargo & Company boosted their price target on shares of Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a research report on Thursday, October 31st. Benchmark reaffirmed a “buy” rating and set a $105.00 price objective on shares of Roku in a report on Thursday, September 12th. Finally, Piper Sandler boosted their target price on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a report on Thursday, October 31st. 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 issued a strong buy rating to the company. According to data from MarketBeat, Roku presently has a consensus rating of “Moderate Buy” and an average price target of $83.81.

Roku Stock Down 5.7 %

The stock has a fifty day moving average of $75.48 and a two-hundred day moving average of $68.31. The stock has a market cap of $10.89 billion, a price-to-earnings ratio of -62.48 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share 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 business had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same period in the prior year, the company posted ($2.33) EPS. The business’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, research analysts expect that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total transaction of $76,250.00. Following the completion of the transaction, the chief financial officer now directly owns 53,267 shares in the company, valued at approximately $4,061,608.75. This trade represents a 1.84 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 73,096 shares of company stock worth $5,661,223. Company insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of ROKU. 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 valued at $1,087,824,000 after buying an additional 244,793 shares during the last quarter. Holocene Advisors LP acquired a new stake in shares of Roku during the third quarter valued at $129,015,000. Westfield Capital Management Co. LP increased its position in Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Roku by 3.2% during 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. Finally, Point72 Asset Management L.P. lifted its holdings in Roku by 352.5% in the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after purchasing an additional 507,643 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

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.