Roku (NASDAQ:ROKU) Shares Down 4.4% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 4.4% during mid-day trading on Friday . The company traded as low as $78.80 and last traded at $79.35. 1,263,902 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 2,893,622 shares. The stock had previously closed at $83.00.

Analysts Set New Price Targets

A number of research firms have recently commented on ROKU. JPMorgan Chase & Co. raised their price target on Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research report on Thursday, October 10th. Macquarie restated an “outperform” rating and set a $90.00 target price on shares of Roku in a report on Thursday, October 31st. Citigroup upped their price target on shares of Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a report on Wednesday, September 25th. Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Finally, Piper Sandler upped their target price on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $82.62.

Roku Stock Performance

The business’s 50-day moving average price is $75.99 and its 200 day moving average price is $69.89. The company has a market cap of $11.72 billion, a P/E ratio of -67.28 and a beta of 2.05.

Roku (NASDAQ:ROKU) last announced 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 return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter in the previous year, the business earned ($2.33) earnings per share. The business’s revenue was up 16.5% compared to the same quarter last year. Equities research analysts forecast that Roku, Inc. will post -1.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, insider Charles Collier sold 10,771 shares of the business’s stock in a transaction 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 completion of the sale, the insider now directly owns 3,790 shares in the company, valued at $269,620.60. The trade was a 73.97 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total value of $82,730.00. Following the transaction, the chief financial officer now owns 64,555 shares in the company, valued at $5,340,635.15. The trade was a 1.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 48,095 shares of company stock valued at $3,731,038 over the last ninety days. 13.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

A number of large investors have recently bought and sold shares of ROKU. Holocene Advisors LP bought a new position in Roku in the third quarter valued at about $129,015,000. Westfield Capital Management Co. LP boosted 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 buying an additional 856,401 shares during the period. Point72 Asset Management L.P. grew its holdings in Roku by 352.5% during the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after acquiring an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP lifted its holdings in shares of Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after purchasing an additional 445,777 shares during the period. Finally, FMR LLC lifted its holdings in Roku by 1.7% during the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after buying an additional 244,793 shares during the period. 86.30% of the stock is currently 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.