Roku (NASDAQ:ROKU) Stock Price Down 14.6% - Here's What Happened

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were down 14.6% during mid-day trading on Thursday . The company traded as low as $60.70 and last traded at $60.98. Approximately 2,450,382 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 3,706,637 shares. The stock had previously closed at $71.42.

Analyst Ratings Changes

A number of analysts have recently commented on the company. Redburn Atlantic raised Roku from a "neutral" rating to a "buy" rating and set a $100.00 price target on the stock in a research report on Monday. Benchmark upped their price target on shares of Roku from $100.00 to $130.00 and gave the stock a "buy" rating in a research note on Friday, February 14th. Citigroup raised shares of Roku from a "neutral" rating to an "outperform" rating in a research report on Sunday, March 23rd. FBN Securities started coverage on shares of Roku in a report on Friday, March 28th. They issued an "outperform" rating and a $93.00 target price for the company. Finally, Wedbush reiterated an "outperform" rating and set a $100.00 price target on shares of Roku in a report on Monday, February 10th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating, eighteen have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Roku presently has an average rating of "Moderate Buy" and a consensus target price of $96.70.

Roku Trading Up 3.3 %

The firm has a 50 day moving average price of $79.65 and a 200 day moving average price of $77.39. The stock has a market capitalization of $8.34 billion, a PE ratio of -64.19 and a beta of 2.17.

Remove Ads

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping analysts' consensus estimates of ($0.44) by $0.20. The business had revenue of $1.20 billion during the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. On average, equities research analysts expect that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In related news, CFO Dan Jedda sold 5,000 shares of the firm's stock in a transaction on Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the sale, the chief financial officer now directly owns 58,555 shares in the company, valued at $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Matthew C. Banks sold 1,906 shares of the business's stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the transaction, the chief accounting officer now owns 7,256 shares in the company, valued at $583,092.16. This trade represents a 20.80 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 97,905 shares of company stock valued at $8,632,306 over the last ninety days. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently made changes to their positions in ROKU. FMR LLC grew its stake in shares of Roku by 31.7% during the fourth quarter. FMR LLC now owns 19,183,942 shares of the company's stock valued at $1,426,134,000 after buying an additional 4,613,570 shares during the last quarter. Marshall Wace LLP boosted its holdings in Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock valued at $173,644,000 after acquiring an additional 2,030,036 shares during the period. Cadian Capital Management LP bought a new position in Roku in the 4th quarter valued at $87,632,000. Jacobs Levy Equity Management Inc. increased its stake in Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock worth $96,402,000 after purchasing an additional 1,082,548 shares during the period. Finally, Two Sigma Investments LP lifted its position in shares of Roku by 149.8% during the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock worth $90,017,000 after purchasing an additional 726,077 shares during 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.