Roku (NASDAQ:ROKU) Stock Price Down 5% - What's Next?

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price was down 5% during trading on Tuesday . The stock traded as low as $85.44 and last traded at $86.67. Approximately 1,235,338 shares changed hands during mid-day trading, a decline of 66% from the average daily volume of 3,671,609 shares. The stock had previously closed at $91.24.

Analyst Ratings Changes

ROKU has been the topic of several research analyst reports. Bank of America lifted their price objective on shares of Roku from $90.00 to $120.00 and gave the stock a "buy" rating in a research report on Friday, February 14th. Wedbush reissued an "outperform" rating and issued a $100.00 price objective on shares of Roku in a research note on Monday, February 10th. Needham & Company LLC restated a "buy" rating and set a $100.00 price objective on shares of Roku in a research report on Tuesday, January 7th. Piper Sandler upped their target price on Roku from $60.00 to $75.00 and gave the company a "neutral" rating in a report on Thursday, October 31st. Finally, Pivotal Research upgraded shares of Roku from a "hold" rating to a "buy" rating and raised their price target for the stock from $65.00 to $125.00 in a report on Friday, February 14th. Two investment analysts have rated the stock with a sell rating, six have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and an average price target of $96.00.

Roku Stock Performance

The firm has a market capitalization of $12.19 billion, a P/E ratio of -93.83 and a beta of 2.05. The stock has a 50 day moving average of $82.08 and a two-hundred day moving average of $75.88.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly 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 company had revenue of $1.20 billion for the quarter, compared to analyst estimates of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. Sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction on Friday, February 14th. The shares were sold at an average price of $100.40, for a total transaction of $2,510,000.00. Following the completion of the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,664,415.20. This represents a 48.51 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Dan Jedda sold 1,000 shares of the firm's stock in a transaction on Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the completion of the sale, the chief financial officer now owns 64,555 shares in the company, valued at $5,340,635.15. This represents a 1.53 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 109,432 shares of company stock worth $9,661,783 over the last ninety days. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Several large investors have recently added to or reduced their stakes in ROKU. Geneos Wealth Management Inc. raised its stake in shares of Roku by 369.9% in the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company's stock valued at $25,000 after purchasing an additional 270 shares in the last quarter. Vision Financial Markets LLC bought a new stake in Roku in the fourth quarter valued at about $30,000. Raelipskie Partnership acquired a new position in Roku in the third quarter worth about $32,000. Game Plan Financial Advisors LLC bought a new stake in shares of Roku in the 4th quarter valued at approximately $37,000. Finally, Harvest Fund Management Co. Ltd raised its holdings in shares of Roku by 4,091.7% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company's stock worth $37,000 after buying an additional 491 shares in the last quarter. Institutional investors and hedge funds 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.