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

Roku, Inc. (NASDAQ:ROKU) gapped down prior to trading on Thursday . The stock had previously closed at $77.51, but opened at $68.00. Roku shares last traded at $63.15, with a volume of 2,740,257 shares changing hands.

Analyst Upgrades and Downgrades

Several research analysts recently commented on ROKU shares. Morgan Stanley raised their price target on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a report on Tuesday. Rosenblatt Securities lifted their price objective on shares of Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research note on Thursday. Citigroup lifted their price objective on shares of Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective on the stock in a research note on Tuesday, October 1st. Finally, Robert W. Baird lifted their price objective on shares of Roku from $56.00 to $75.00 and gave the company a “neutral” rating in a research note on Monday, September 30th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and twelve have given a buy rating to the company’s stock. Based on data from MarketBeat, Roku has an average rating of “Hold” and an average target price of $83.80.

Roku Price Performance

The stock has a market cap of $8.77 billion, a price-to-earnings ratio of -15.37 and a beta of 2.08. The business’s fifty day simple moving average is $73.24 and its 200 day simple moving average is $63.66.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative net margin of 13.16% and a negative return on equity of 21.03%. The firm’s revenue was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the company posted ($2.33) earnings per share. As a group, equities analysts forecast that Roku, Inc. will post -1.43 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the sale, the chief financial officer now directly owns 53,267 shares in the company, valued at approximately $4,061,608.75. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction on 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 sale, the chief executive officer now directly owns 5,020 shares in the company, valued at approximately $387,544. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction on Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total value of $76,250.00. Following the completion of the sale, the chief financial officer now owns 53,267 shares in the company, valued at $4,061,608.75. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 69,566 shares of company stock worth $5,254,000. 13.98% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

Hedge funds have recently added to or reduced their stakes in the stock. Future Financial Wealth Managment LLC bought a new stake in shares of Roku during the third quarter valued at about $43,000. EverSource Wealth Advisors LLC raised its stake in shares of Roku by 123.4% during 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. Geneos Wealth Management Inc. raised its stake in shares of Roku by 835.6% during the first quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock valued at $45,000 after purchasing an additional 610 shares in the last quarter. Cedar Wealth Management LLC bought a new stake in shares of Roku during the second quarter valued at about $48,000. Finally, Natixis bought a new stake in shares of Roku during the first quarter valued at about $53,000. 86.30% of the stock is currently owned by 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.