Roku (NASDAQ:ROKU) Stock Price Down 0.4% - Should You Sell?

Roku, Inc. (NASDAQ:ROKU - Get Free Report) was down 0.4% on Thursday . The stock traded as low as $74.40 and last traded at $74.89. Approximately 380,062 shares were traded during trading, a decline of 91% from the average daily volume of 4,404,980 shares. The stock had previously closed at $75.21.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ROKU. Moffett Nathanson upgraded Roku from a "sell" rating to a "neutral" rating and set a $80.00 target price for the company in a research report on Tuesday, October 1st. Robert W. Baird lifted their target price on Roku from $56.00 to $75.00 and gave the stock a "neutral" rating in a research report on Monday, September 30th. JPMorgan Chase & Co. lifted their price objective on shares of Roku from $90.00 to $92.00 and gave the company an "overweight" rating in a report on Thursday, October 10th. Wedbush increased their price objective on Roku from $75.00 to $85.00 and gave the stock an "outperform" rating in a research note on Friday, October 25th. Finally, Jefferies Financial Group dropped their price target on Roku from $60.00 to $55.00 and set an "underperform" rating on the stock in a research report on Friday, November 1st. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have issued a buy rating to the stock. According to data from MarketBeat.com, Roku currently has a consensus rating of "Hold" and a consensus price target of $83.95.

Roku Price Performance

The company has a market capitalization of $10.92 billion, a PE ratio of -62.41 and a beta of 2.07. The business's 50 day simple moving average is $74.12 and its 200 day simple moving average is $64.51.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company's revenue for the quarter was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the business earned ($2.33) earnings per share. As a group, analysts anticipate that Roku, Inc. will post -1.1 EPS for the current year.

Insider Activity at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at $376,500. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the completion of the transaction, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charles Collier sold 15,454 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now owns 200 shares in the company, valued at $15,000. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 69,776 shares of company stock worth $5,267,305. 13.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC lifted its holdings in shares of Roku by 243.1% during the first quarter. Allspring Global Investments Holdings LLC now owns 2,045 shares of the company's stock worth $133,000 after purchasing an additional 1,449 shares during the period. Empowered Funds LLC lifted its holdings in Roku by 25.5% in the first quarter. Empowered Funds LLC now owns 5,088 shares of the company's stock valued at $332,000 after acquiring an additional 1,033 shares during the period. Russell Investments Group Ltd. boosted its holdings in Roku by 131.1% during the first quarter. Russell Investments Group Ltd. now owns 66,046 shares of the company's stock worth $4,305,000 after buying an additional 37,464 shares in the last quarter. Avantax Advisory Services Inc. increased its holdings in Roku by 45.5% in the first quarter. Avantax Advisory Services Inc. now owns 18,847 shares of the company's stock valued at $1,228,000 after buying an additional 5,898 shares in the last quarter. Finally, BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new stake in shares of Roku during the 1st quarter worth approximately $1,536,000. 86.30% of the stock is owned by hedge funds and other 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.

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