Roku (NASDAQ:ROKU) Shares Down 4.4% - Here's Why

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price fell 4.4% on Friday . The stock traded as low as $78.80 and last traded at $79.35. 1,263,902 shares traded hands during trading, a decline of 56% from the average session volume of 2,893,622 shares. The stock had previously closed at $83.00.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on the company. Bank of America lifted their target price on Roku from $75.00 to $90.00 and gave the company a "buy" rating in a research report on Monday, September 30th. Baird R W raised Roku from a "hold" rating to a "strong-buy" rating in a report on Monday, November 18th. Macquarie reissued an "outperform" rating and set a $90.00 price target on shares of Roku in a report on Thursday, October 31st. JPMorgan Chase & Co. upped their target price on Roku from $90.00 to $92.00 and gave the stock an "overweight" rating in a report on Thursday, October 10th. Finally, Wolfe Research raised Roku from a "peer perform" rating to an "outperform" rating and set a $93.00 price target for the company in a research note on Thursday, September 12th. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $82.62.

Roku Price Performance

The stock has a market capitalization of $11.50 billion, a PE ratio of -65.99 and a beta of 2.05. The business's fifty day moving average price is $75.99 and its two-hundred day moving average price is $69.89.

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

Insider Activity

In other news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total value of $2,066,000.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,193,100.32. This represents a 48.51 % decrease in their ownership of the stock. The sale 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 stock in a transaction on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the sale, the chief financial officer now directly owns 65,555 shares in the company, valued at $4,916,625. This trade represents a 1.50 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 48,095 shares of company stock worth $3,731,038. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Large investors have recently made changes to their positions in the business. GS Investments Inc. increased its position in Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company's stock worth $44,000 after acquiring an additional 147 shares during the period. PFG Investments LLC grew its stake in shares of Roku by 3.7% during the 3rd quarter. PFG Investments LLC now owns 4,157 shares of the company's stock worth $310,000 after acquiring an additional 150 shares in the last quarter. True Vision MN LLC grew its stake in shares of Roku by 3.1% during the 3rd quarter. True Vision MN LLC now owns 5,018 shares of the company's stock worth $375,000 after acquiring an additional 152 shares in the last quarter. Sequoia Financial Advisors LLC boosted its holdings in shares of Roku by 4.5% in the 3rd quarter. Sequoia Financial Advisors LLC now owns 4,721 shares of the company's stock valued at $352,000 after buying an additional 202 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC lifted its holdings in Roku by 11.2% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 2,207 shares of the company's stock valued at $165,000 after purchasing an additional 222 shares during the last quarter. Institutional investors 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.