Roku (NASDAQ:ROKU) Shares Down 3.4% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU)’s share price was down 3.4% during trading on Tuesday . The stock traded as low as $76.68 and last traded at $77.51. Approximately 1,170,372 shares were traded during trading, a decline of 68% from the average daily volume of 3,608,945 shares. The stock had previously closed at $80.26.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Jefferies Financial Group upgraded Roku from an “underperform” rating to a “hold” rating and lifted their price target for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. JPMorgan Chase & Co. lifted their target price on shares of Roku from $92.00 to $115.00 and gave the company an “overweight” rating in a report on Friday, February 14th. JMP Securities increased their price target on shares of Roku from $95.00 to $115.00 and gave the stock a “market outperform” rating in a report on Friday, February 14th. Benchmark raised their price target on shares of Roku from $100.00 to $130.00 and gave the company a “buy” rating in a research report on Friday, February 14th. Finally, Rosenblatt Securities reiterated a “neutral” rating and issued a $86.00 price objective on shares of Roku in a research report on Thursday, February 13th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, fourteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $96.71.

Roku Price Performance

The stock’s fifty day moving average price is $82.17 and its 200-day moving average price is $76.51. The firm has a market cap of $11.74 billion, a PE ratio of -90.35 and a beta of 2.12.

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

Insider Buying and Selling

In related news, CFO Dan Jedda sold 5,000 shares of the company’s stock in a transaction dated Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the sale, the chief financial officer now owns 58,555 shares of the company’s stock, valued at approximately $5,878,922. This represents a 7.87 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 109,221 shares of company stock worth $9,647,087. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Several hedge funds have recently made changes to their positions in the company. FMR LLC raised its position in shares of Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after buying an additional 4,613,570 shares during the period. Marshall Wace LLP raised its position in Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares during the period. Holocene Advisors LP acquired a new position in shares of Roku in the 3rd quarter valued at $129,015,000. Cadian Capital Management LP purchased a new position in shares of Roku during the 4th quarter worth $87,632,000. Finally, Jacobs Levy Equity Management Inc. grew its holdings in shares of Roku by 505.3% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock worth $96,402,000 after purchasing an additional 1,082,548 shares during the period. Hedge funds and other 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.