Roku (NASDAQ:ROKU) Shares Down 2% – What’s Next?

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

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Piper Sandler lifted their target price on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Wedbush restated an “outperform” rating and issued a $100.00 price objective (up previously from $85.00) on shares of Roku in a report on Friday, December 6th. Wells Fargo & Company upped their target price on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research note on Thursday, October 31st. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Wednesday, December 4th. Finally, Jefferies Financial Group lowered their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $83.81.

Roku Trading Down 2.2 %

The business’s fifty day moving average price is $75.32 and its 200 day moving average price is $67.85. The firm has a market capitalization of $11.44 billion, a price-to-earnings ratio of -65.66 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted 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 for the quarter, compared to analyst estimates of $1.02 billion. During the same period in the previous year, the business posted ($2.33) earnings per share. Roku’s quarterly revenue was up 16.5% on a year-over-year basis. As a group, sell-side analysts forecast that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Activity at Roku

In other news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $76.25, for a total value of $76,250.00. Following the sale, the chief financial officer now owns 53,267 shares of the company’s stock, valued at $4,061,608.75. The trade was a 1.84 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Thursday, October 10th. The stock was sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the transaction, the chief executive officer now owns 5,020 shares in the company, valued at approximately $387,544. This trade represents a 83.28 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 73,096 shares of company stock worth $5,661,223 in the last quarter. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Roku by 19.8% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 6,836 shares of the company’s stock valued at $410,000 after buying an additional 1,131 shares during the period. Bank of New York Mellon Corp raised its position in Roku by 5.2% in the second quarter. Bank of New York Mellon Corp now owns 500,794 shares of the company’s stock worth $30,013,000 after acquiring an additional 24,926 shares in the last quarter. Migdal Insurance & Financial Holdings Ltd. acquired a new stake in Roku in the second quarter valued at $81,000. IQ EQ FUND MANAGEMENT IRELAND Ltd purchased a new stake in shares of Roku during the 2nd quarter worth $575,000. Finally, Panagora Asset Management Inc. grew its stake in shares of Roku by 25.5% during the 2nd quarter. Panagora Asset Management Inc. now owns 14,456 shares of the company’s stock worth $866,000 after purchasing an additional 2,940 shares during the period. 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.