Roku (NASDAQ:ROKU) Shares Gap Down on Insider Selling

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $73.61, but opened at $67.99. Roku shares last traded at $69.41, with a volume of 2,268,725 shares trading hands.

Specifically, CAO Matthew C. Banks sold 8,693 shares of the company's stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. This represents a 54.48 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Charles Collier sold 10,771 shares of the company's stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the transaction, the insider now directly owns 3,790 shares of the company's stock, valued at $269,620.60. The trade was a 73.97 % decrease in their position. The disclosure for this sale can be found here. In other news, CFO Dan Jedda sold 1,000 shares of the business's stock in a transaction that occurred on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the sale, the chief financial officer now directly owns 65,555 shares in the company, valued at $4,916,625. The trade was a 1.50 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on ROKU shares. Wolfe Research raised shares of Roku from a "peer perform" rating to an "outperform" rating and set a $93.00 price objective on the stock in a report on Thursday, September 12th. Robert W. Baird upgraded Roku from a "neutral" rating to an "outperform" rating and lifted their price objective for the stock from $70.00 to $90.00 in a report on Monday. Bank of America increased their target price on Roku from $75.00 to $90.00 and gave the company a "buy" rating in a report on Monday, September 30th. Wells Fargo & Company increased their price objective on Roku from $72.00 to $74.00 and gave the company an "equal weight" rating in a research note on Thursday, October 31st. Finally, Citigroup upped their target price on shares of Roku from $60.00 to $77.00 and gave the stock a "neutral" rating in a report on Wednesday, September 25th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Roku presently has an average rating of "Moderate Buy" and an average price target of $84.67.

Roku Trading Down 6.7 %

The company's fifty day moving average is $74.69 and its two-hundred day moving average is $64.94. The stock has a market cap of $9.98 billion, a price-to-earnings ratio of -56.64 and a beta of 2.07.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results 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. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business's revenue for the quarter was up 16.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($2.33) earnings per share. Analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Hedge Funds Weigh In On Roku

Institutional investors have recently modified their holdings of the business. Raelipskie Partnership purchased a new position in Roku in the third quarter valued at $32,000. Future Financial Wealth Managment LLC purchased a new position in shares of Roku in the 3rd quarter valued at about $43,000. GS Investments Inc. grew its position in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company's stock worth $44,000 after buying an additional 147 shares in the last quarter. EverSource Wealth Advisors LLC increased 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 worth $40,000 after buying an additional 375 shares during the period. Finally, Cedar Wealth Management LLC acquired a new stake in Roku in the second quarter valued at approximately $48,000. Institutional investors and hedge funds 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.