Roku (NASDAQ:ROKU) Shares Down 0.3% - Should You Sell?

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares dropped 0.3% on Wednesday . The company traded as low as $84.40 and last traded at $85.48. Approximately 848,918 shares changed hands during trading, a decline of 77% from the average daily volume of 3,672,946 shares. The stock had previously closed at $85.76.

Wall Street Analysts Forecast Growth

ROKU has been the subject of a number of recent research reports. JPMorgan Chase & Co. boosted their price target on shares of Roku from $92.00 to $115.00 and gave the stock an "overweight" rating in a research note on Friday, February 14th. Wedbush reissued an "outperform" rating and set a $100.00 price target on shares of Roku in a research note on Monday, February 10th. UBS Group boosted their price target on shares of Roku from $73.00 to $90.00 and gave the stock a "neutral" rating in a research note on Friday, February 14th. Loop Capital boosted their price target on shares of Roku from $70.00 to $80.00 and gave the stock a "hold" rating in a research note on Monday, December 9th. Finally, Robert W. Baird raised shares of Roku from a "neutral" rating to an "outperform" rating and boosted their price target for the stock from $70.00 to $90.00 in a research note on Monday, November 18th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $96.00.

Roku Price Performance

The company's 50-day moving average price is $82.14 and its 200-day moving average price is $76.08. The company has a market cap of $12.19 billion, a P/E ratio of -93.83 and a beta of 2.05.

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

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Friday, January 10th. The shares were sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares in the company, valued at approximately $2,116,936.26. This represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the transaction, the chief financial officer now owns 64,555 shares of the company's stock, valued at $5,340,635.15. The trade was a 1.53 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 109,432 shares of company stock valued at $9,661,783 over the last quarter. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the business. FMR LLC lifted its stake in Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company's stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares during the last quarter. Vanguard Group Inc. lifted its stake in Roku by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company's stock valued at $910,597,000 after acquiring an additional 185,676 shares during the last quarter. Marshall Wace LLP lifted its stake in 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 acquiring an additional 2,030,036 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its stake in Roku by 10.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company's stock valued at $168,734,000 after acquiring an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock valued at $159,353,000 after acquiring an additional 56,820 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

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.