Roku (NASDAQ:ROKU) Trading Down 0.3% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) shares dropped 0.3% during trading on Thursday . The stock traded as low as $75.39 and last traded at $76.28. Approximately 537,523 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 2,776,946 shares. The stock had previously closed at $76.53.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the company. Piper Sandler upped their price target on Roku from $60.00 to $75.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and increased their target price for the stock from $70.00 to $90.00 in a report on Monday, November 18th. Bank of America lifted their price target on shares of Roku from $75.00 to $90.00 and gave the company a “buy” rating in a report on Monday, September 30th. UBS Group started coverage on shares of Roku in a research note on Friday, November 22nd. They set a “neutral” rating and a $73.00 price objective on the stock. Finally, Wedbush restated an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Wednesday, January 8th. Three analysts have rated the stock with a sell rating, eight have given a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $82.62.

Roku Trading Down 1.5 %

The company’s 50-day moving average price is $76.64 and its two-hundred day moving average price is $70.53. The company has a market cap of $10.95 billion, a P/E ratio of -62.84 and a beta of 2.05.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The firm had revenue of $1.06 billion during the quarter, compared to analysts’ expectations of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The firm’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same period last year, the firm posted ($2.33) earnings per share. Equities analysts forecast that Roku, Inc. will post -1.09 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Charles Collier sold 10,771 shares of the stock in a transaction on Monday, November 18th. The stock was sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the transaction, the insider now owns 3,790 shares in the company, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The transaction 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 business’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now owns 7,264 shares in the company, valued at approximately $518,940.16. The trade was a 54.48 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 72,095 shares of company stock worth $5,649,038 in the last three months. 13.98% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roku

Hedge funds have recently made changes to their positions in the company. Choreo LLC purchased a new stake in shares of Roku in the second quarter valued at $324,000. American Century Companies Inc. lifted its stake in Roku by 3.5% in the 2nd quarter. American Century Companies Inc. now owns 25,847 shares of the company’s stock worth $1,549,000 after acquiring an additional 877 shares in the last quarter. DekaBank Deutsche Girozentrale boosted its position in Roku by 6.6% during the 2nd quarter. DekaBank Deutsche Girozentrale now owns 16,430 shares of the company’s stock worth $982,000 after acquiring an additional 1,022 shares during the period. Federated Hermes Inc. grew its stake in Roku by 32.6% during the 2nd quarter. Federated Hermes Inc. now owns 1,695 shares of the company’s stock valued at $102,000 after acquiring an additional 417 shares in the last quarter. Finally, Envestnet Asset Management Inc. increased its holdings in shares of Roku by 20.7% in the 2nd quarter. Envestnet Asset Management Inc. now owns 110,616 shares of the company’s stock valued at $6,629,000 after purchasing an additional 19,002 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.