Roku (NASDAQ:ROKU) Trading Down 3.4% - Here's What Happened

Roku, Inc. (NASDAQ:ROKU - Get Free Report) dropped 3.4% during trading on Tuesday . The company traded as low as $76.68 and last traded at $77.51. Approximately 1,170,372 shares changed hands during trading, a decline of 68% from the average daily volume of 3,608,945 shares. The stock had previously closed at $80.26.

Wall Street Analysts Forecast Growth

ROKU has been the topic of a number of analyst reports. Benchmark increased their price objective on Roku from $100.00 to $130.00 and gave the company a "buy" rating in a report on Friday, February 14th. Pivotal Research upgraded Roku from a "hold" rating to a "buy" rating and increased their target price for the company from $65.00 to $125.00 in a research note on Friday, February 14th. Moffett Nathanson upgraded Roku from a "sell" rating to a "neutral" rating and set a $70.00 target price for the company in a research note on Tuesday. Wedbush restated an "outperform" rating and set a $100.00 target price on shares of Roku in a research note on Monday, February 10th. Finally, Loop Capital increased their target price on Roku from $70.00 to $80.00 and gave the company a "hold" rating in a research note on Monday, December 9th. One research analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have assigned a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $96.71.

Roku Trading Up 5.8 %

The stock has a fifty day moving average of $82.19 and a two-hundred day moving average of $76.66. The stock has a market capitalization of $12.42 billion, a price-to-earnings ratio of -95.58 and a beta of 2.12.

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

Insider Activity at Roku

In other news, insider Charles Collier sold 7,181 shares of Roku stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $78.25, for a total value of $561,913.25. Following the completion of the sale, the insider now directly owns 7,380 shares of the company's stock, valued at approximately $577,485. This trade represents a 49.32 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Matthew C. Banks sold 1,906 shares of Roku stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the completion of the sale, the chief accounting officer now directly owns 7,256 shares of the company's stock, valued at $583,092.16. This trade represents a 20.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 118,308 shares of company stock valued at $10,362,166 in the last three months. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. FMR LLC lifted its holdings in Roku by 31.7% during the fourth quarter. FMR LLC now owns 19,183,942 shares of the company's stock worth $1,426,134,000 after acquiring an additional 4,613,570 shares in the last quarter. Marshall Wace LLP lifted its holdings in shares of Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock valued at $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. Holocene Advisors LP bought a new stake in shares of Roku in the third quarter valued at about $129,015,000. Cadian Capital Management LP bought a new stake in shares of Roku in the fourth quarter valued at about $87,632,000. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in shares of Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after purchasing an additional 1,082,548 shares in the last quarter. 86.30% of the stock is currently 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.