Roku (NASDAQ:ROKU) Stock Price Down 4.6% - Here's Why

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded down 4.6% during trading on Friday . The stock traded as low as $70.76 and last traded at $70.90. 799,276 shares changed hands during trading, a decline of 82% from the average session volume of 4,397,249 shares. The stock had previously closed at $74.32.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. JPMorgan Chase & Co. boosted their price target on Roku from $90.00 to $92.00 and gave the stock an "overweight" rating in a research report on Thursday, October 10th. Macquarie restated an "outperform" rating and issued a $90.00 target price on shares of Roku in a report on Thursday, October 31st. Citigroup upped their target price on Roku from $60.00 to $77.00 and gave the company a "neutral" rating in a report on Wednesday, September 25th. Benchmark restated a "buy" rating and issued a $105.00 target price on shares of Roku in a report on Thursday, September 12th. Finally, Wedbush upped their target price on Roku from $75.00 to $85.00 and gave the company an "outperform" rating in a report on Friday, October 25th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and twelve have given a buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $83.95.

Roku Stock Performance

The company has a 50 day moving average of $74.12 and a 200-day moving average of $64.51. The stock has a market cap of $10.09 billion, a price-to-earnings ratio of -59.08 and a beta of 2.07.

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

Insider Buying and Selling at Roku

In related news, insider Gilbert Fuchsberg sold 1,693 shares of the firm's stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the transaction, the insider now owns 38,602 shares in the company, valued at $2,485,582.78. This trade represents a 4.20 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Dan Jedda sold 1,000 shares of the firm's stock in a transaction that occurred on Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total value of $76,250.00. Following the transaction, the chief financial officer now owns 53,267 shares in the company, valued at $4,061,608.75. This represents a 1.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 69,776 shares of company stock valued at $5,267,305 in the last quarter. Corporate insiders own 13.98% of the company's stock.

Institutional Trading of Roku

A number of institutional investors have recently modified their holdings of the business. Holocene Advisors LP acquired a new position in Roku during the third quarter worth $129,015,000. Westfield Capital Management Co. LP raised its holdings in shares of Roku by 126.1% in the third quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company's stock worth $114,646,000 after acquiring an additional 856,401 shares during the last quarter. Point72 Asset Management L.P. raised its holdings in shares of Roku by 352.5% in the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company's stock worth $48,653,000 after acquiring an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP raised its holdings in shares of Roku by 470.2% in the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company's stock worth $40,359,000 after acquiring an additional 445,777 shares during the last quarter. Finally, FMR LLC raised its holdings in shares of Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company's stock worth $1,087,824,000 after acquiring an additional 244,793 shares during the last quarter. 86.30% of the stock is currently 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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