Roku (NASDAQ:ROKU) Trading Down 0.4% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) fell 0.4% on Tuesday . The stock traded as low as $78.01 and last traded at $79.58. 1,505,220 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 2,099,451 shares. The stock had previously closed at $79.91.

Analysts Set New Price Targets

ROKU has been the topic of a number of recent research reports. Wells Fargo & Company raised their target price on Roku from $72.00 to $74.00 and gave the company an “equal weight” rating in a report on Thursday, October 31st. Citigroup increased 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. Loop Capital upped their target price on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a report on Monday, December 9th. Piper Sandler boosted their price objective on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Finally, Robert W. Baird upgraded Roku from a “neutral” rating to an “outperform” rating and upped their price objective for the company from $70.00 to $90.00 in a research note on Monday, November 18th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Stock Up 6.4 %

The company has a 50-day moving average price of $75.61 and a two-hundred day moving average price of $69.80. The stock has a market capitalization of $12.05 billion, a P/E ratio of -69.17 and a beta of 2.05.

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 return on equity of 7.22% and a negative net margin of 4.42%. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same quarter last year, the business posted ($2.33) earnings per share. The firm’s revenue was up 16.5% compared to the same quarter last year. On average, sell-side analysts expect that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Transactions at Roku

In other Roku news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total transaction of $76,250.00. Following the transaction, the chief financial officer now directly owns 53,267 shares in the company, valued at $4,061,608.75. This trade represents a 1.84 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 48,095 shares of company stock valued at $3,731,038 in the last quarter. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

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