Roku (NASDAQ:ROKU) Trading Down 14.6% - What's Next?

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

Analyst Ratings Changes

ROKU has been the subject of a number of research analyst reports. Compass Point assumed coverage on shares of Roku in a research report on Sunday, March 23rd. They set a "buy" rating for the company. JMP Securities boosted their price target on Roku from $95.00 to $115.00 and gave the company a "market outperform" rating in a research note on Friday, February 14th. Needham & Company LLC reissued a "buy" rating and set a $120.00 price target on shares of Roku in a report on Monday, March 24th. FBN Securities assumed coverage on shares of Roku in a research note on Friday, March 28th. They issued an "outperform" rating and a $93.00 target price for the company. Finally, Bank of America began coverage on shares of Roku in a report on Thursday, March 27th. They issued a "buy" rating and a $100.00 price target for the company. One investment analyst has rated the stock with a sell rating, five have given a hold rating, eighteen have issued a buy rating and three have assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $96.70.

Roku Trading Up 17.1 %

The stock's 50-day moving average is $78.09 and its 200-day moving average is $76.95. The company has a market cap of $9.41 billion, a price-to-earnings ratio of -72.83 and a beta of 2.17.

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Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating analysts' consensus estimates of ($0.44) by $0.20. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. As a group, analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Activity at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Friday, January 10th. The stock was sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,116,936.26. This represents a 48.51 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Dan Jedda sold 1,000 shares of the firm's stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total value of $77,180.00. Following the transaction, the chief financial officer now directly owns 63,555 shares in the company, valued at $4,905,174.90. This trade represents a 1.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 97,905 shares of company stock valued at $8,632,306. Company insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Parallel Advisors LLC boosted its stake in shares of Roku by 140.0% in the 1st quarter. Parallel Advisors LLC now owns 2,141 shares of the company's stock worth $151,000 after buying an additional 1,249 shares during the last quarter. GAMMA Investing LLC grew its holdings in Roku by 14,242.3% during the first quarter. GAMMA Investing LLC now owns 67,552 shares of the company's stock valued at $4,758,000 after purchasing an additional 67,081 shares during the period. Versant Capital Management Inc lifted its position in shares of Roku by 283.2% during the 1st quarter. Versant Capital Management Inc now owns 3,644 shares of the company's stock valued at $257,000 after buying an additional 2,693 shares in the last quarter. Central Pacific Bank Trust Division purchased a new stake in Roku in the 1st quarter worth approximately $469,000. Finally, Wealth Enhancement Advisory Services LLC raised its stake in Roku by 19.7% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 6,225 shares of the company's stock worth $463,000 after acquiring an additional 1,024 shares during the period. Institutional investors own 86.30% of the company's stock.

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.