Roku (NASDAQ:ROKU) Shares Down 2% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 2% on Monday . The stock traded as low as $78.70 and last traded at $79.01. Approximately 422,855 shares traded hands during mid-day trading, a decline of 90% from the average daily volume of 4,356,052 shares. The stock had previously closed at $80.59.

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective for the company in a research note on Tuesday, October 1st. Piper Sandler boosted their target price on shares of Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Benchmark reaffirmed a “buy” rating and set a $105.00 price target on shares of Roku in a research report on Thursday, September 12th. Loop Capital lifted their price objective on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. Finally, Bank of America upped their target price on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research note on Monday, September 30th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $83.81.

Roku Price Performance

The business’s 50 day moving average price is $75.37 and its 200 day moving average price is $67.99. The firm has a market cap of $11.55 billion, a PE ratio of -66.30 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data 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. 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 analysts’ expectations of $1.02 billion. During the same period in the previous year, the firm posted ($2.33) EPS. Roku’s revenue was up 16.5% compared to the same quarter last year. As a group, analysts predict that Roku, Inc. will post -1.1 earnings per share for the current year.

Insider Activity at Roku

In other news, CAO Matthew C. Banks sold 8,693 shares of the business’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now directly owns 7,264 shares in the company, valued at $518,940.16. The trade was a 54.48 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Charles Collier sold 10,771 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the sale, the insider now owns 3,790 shares of the company’s stock, valued at $269,620.60. This trade represents a 73.97 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 73,096 shares of company stock valued at $5,661,223. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. Holocene Advisors LP acquired a new stake in shares of Roku in the 3rd quarter worth $129,015,000. Westfield Capital Management Co. LP grew 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 valued at $114,646,000 after purchasing an additional 856,401 shares during the period. Point72 Asset Management L.P. increased its position in Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares during the last quarter. JAT Capital Mgmt LP raised its stake in Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after purchasing an additional 445,777 shares during the period. Finally, FMR LLC boosted its holdings in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after purchasing an additional 244,793 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.