Roku (NASDAQ:ROKU) Stock Price Down 2% – Should You Sell?

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

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on ROKU shares. Jefferies Financial Group reduced their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research note on Friday, November 1st. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a research note on Thursday, September 12th. Piper Sandler lifted their price objective on shares of Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research note on Thursday, October 31st. Macquarie restated an “outperform” rating and set a $90.00 target price on shares of Roku in a research report on Thursday, October 31st. Finally, Bank of America lifted their price target on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Two analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $83.81.

Roku Stock Up 1.0 %

The firm has a 50 day moving average of $75.37 and a 200-day moving average of $67.99. The company has a market cap of $11.55 billion, a P/E ratio of -66.30 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating 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 firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same quarter last year, the firm posted ($2.33) earnings per share. The business’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, research analysts predict that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total value of $1,930,000.00. Following the completion of the transaction, the chief executive officer now directly owns 5,020 shares in the company, valued at approximately $387,544. The trade was a 83.28 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Matthew C. Banks sold 8,693 shares of the stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the sale, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 73,096 shares of company stock worth $5,661,223. 13.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently bought and sold shares of the company. Raelipskie Partnership purchased a new stake in shares of Roku during the 3rd quarter valued at $32,000. EverSource Wealth Advisors LLC raised its holdings in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC acquired a new position in shares of Roku in the 3rd quarter valued at $43,000. GS Investments Inc. raised its stake in Roku by 33.4% in the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after acquiring an additional 147 shares during the last quarter. Finally, Cedar Wealth Management LLC acquired a new stake in Roku during the 2nd quarter worth about $48,000. Hedge funds and other institutional investors 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.