Roku (NASDAQ:ROKU) Stock Price Down 0.5% - Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were down 0.5% on Tuesday . The stock traded as low as $72.34 and last traded at $73.67. Approximately 452,506 shares were traded during mid-day trading, a decline of 90% from the average daily volume of 4,402,710 shares. The stock had previously closed at $74.03.

Wall Street Analyst Weigh In

Several research 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 research report on Thursday, September 12th. Jefferies Financial Group dropped their target price on shares of Roku from $60.00 to $55.00 and set an "underperform" rating for the company in a report on Friday, November 1st. Robert W. Baird upgraded Roku from a "neutral" rating to an "outperform" rating and boosted their target price for the stock from $70.00 to $90.00 in a research report on Monday. Wells Fargo & Company raised their price target on Roku from $72.00 to $74.00 and gave the company an "equal weight" rating in a research report on Thursday, October 31st. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 price target on shares of Roku in a research note on Thursday, October 31st. Two analysts have rated the stock with a sell rating, eight have issued a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Roku has a consensus rating of "Moderate Buy" and a consensus price target of $84.67.

Roku Stock Performance

The firm has a market capitalization of $10.73 billion, a P/E ratio of -61.39 and a beta of 2.07. The stock has a 50 day moving average of $74.36 and a two-hundred day moving average of $64.74.

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, beating the consensus estimate of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. During the same period last year, the business posted ($2.33) earnings per share. The firm's revenue was up 16.5% compared to the same quarter last year. Sell-side analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Thursday, September 12th. The stock was 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 of the company's stock, valued at approximately $376,500. The trade was a 83.28 % decrease in their ownership of the stock. The transaction 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 that occurred on Tuesday, September 17th. The stock was sold at an average price of $75.33, for a total value of $75,330.00. Following the transaction, the chief financial officer now owns 54,267 shares of the company's stock, valued at $4,087,933.11. This trade represents a 1.81 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 69,776 shares of company stock worth $5,267,305. Insiders own 13.98% of the company's stock.

Institutional Trading of Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raelipskie Partnership acquired a new stake in shares of Roku during the third quarter worth $32,000. EverSource Wealth Advisors LLC grew its position in shares of Roku by 123.4% during the 2nd 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. Future Financial Wealth Managment LLC bought a new stake in shares of Roku in the 3rd quarter valued at about $43,000. GS Investments Inc. raised its position in shares of Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company's stock valued at $44,000 after acquiring an additional 147 shares during the period. Finally, Cedar Wealth Management LLC bought a new position in Roku during the 2nd quarter worth approximately $48,000. 86.30% of the stock is owned by institutional investors.

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.

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