Roku (NASDAQ:ROKU) Trading Down 6.1% - What's Next?

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares dropped 6.1% during mid-day trading on Friday . The company traded as low as $53.24 and last traded at $56.59. Approximately 2,073,810 shares were traded during mid-day trading, a decline of 44% from the average daily volume of 3,722,235 shares. The stock had previously closed at $60.26.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of analyst reports. Redburn Atlantic upgraded shares of Roku from a "neutral" rating to a "buy" rating and set a $100.00 price objective on the stock in a research report on Monday. Citigroup raised shares of Roku from a "neutral" rating to an "outperform" rating in a research report on Sunday, March 23rd. FBN Securities initiated coverage on shares of Roku in a research note on Friday, March 28th. They issued an "outperform" rating and a $93.00 price objective for the company. Needham & Company LLC reaffirmed a "buy" rating and set a $120.00 target price on shares of Roku in a research note on Monday, March 24th. Finally, JMP Securities raised their price target on Roku from $95.00 to $115.00 and gave the stock a "market outperform" rating in a research note on Friday, February 14th. One investment analyst has rated the stock with a sell rating, five have issued a hold rating, eighteen have given a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $96.70.

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Roku Price Performance

The company's fifty day moving average price is $79.19 and its 200-day moving average price is $77.25. The stock has a market cap of $8.04 billion, a price-to-earnings ratio of -61.91 and a beta of 2.17.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, beating analysts' consensus estimates of ($0.44) by $0.20. The firm had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. On average, sell-side analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other news, CEO Anthony J. Wood sold 4,600 shares of the business's stock in a transaction that occurred on Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the sale, the chief executive officer now directly owns 6,243 shares in the company, valued at $468,225. The trade was a 42.42 % 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. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total transaction of $77,180.00. Following the completion of the sale, the chief financial officer now directly owns 63,555 shares in the company, valued at $4,905,174.90. This represents a 1.55 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 97,905 shares of company stock valued at $8,632,306 in the last 90 days. 13.98% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Farther Finance Advisors LLC lifted its stake in Roku by 23.9% in the 4th quarter. Farther Finance Advisors LLC now owns 627 shares of the company's stock valued at $47,000 after buying an additional 121 shares in the last quarter. United Advisor Group LLC boosted its stake in shares of Roku by 0.9% in the fourth quarter. United Advisor Group LLC now owns 14,430 shares of the company's stock worth $1,073,000 after acquiring an additional 130 shares during the last quarter. Cerity Partners LLC increased its position in shares of Roku by 0.5% during the fourth quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock worth $1,984,000 after purchasing an additional 145 shares in the last quarter. Richard W. Paul & Associates LLC raised its stake in Roku by 1.1% in the 4th quarter. Richard W. Paul & Associates LLC now owns 15,997 shares of the company's stock valued at $1,189,000 after purchasing an additional 177 shares during the last quarter. Finally, CIBC Asset Management Inc lifted its stake in shares of Roku by 5.2% in the fourth quarter. CIBC Asset Management Inc now owns 3,859 shares of the company's stock worth $287,000 after buying an additional 191 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other 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.