Roku (NASDAQ:ROKU) Trading Down 3.6% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) shares were down 3.6% during trading on Wednesday . The company traded as low as $100.66 and last traded at $100.84. Approximately 2,379,017 shares traded hands during trading, a decline of 16% from the average daily volume of 2,834,167 shares. The stock had previously closed at $104.58.

Analysts Set New Price Targets

A number of research analysts have issued reports on ROKU shares. Needham & Company LLC restated a “buy” rating and issued a $110.00 price objective on shares of Roku in a research note on Wednesday, October 1st. Wells Fargo & Company restated an “overweight” rating on shares of Roku in a report on Monday, January 5th. Guggenheim lifted their price objective on shares of Roku from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Jefferies Financial Group raised shares of Roku from a “hold” rating to a “buy” rating and increased their target price for the company from $100.00 to $135.00 in a research report on Thursday, December 11th. Finally, Raymond James Financial reaffirmed a “market perform” rating on shares of Roku in a report on Friday, October 31st. Twenty-two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $118.79.

Roku Stock Down 3.6%

The company has a 50-day moving average price of $104.85 and a two-hundred day moving average price of $98.90. The company has a market capitalization of $14.90 billion, a PE ratio of -504.17 and a beta of 1.95.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.21 billion. During the same period in the prior year, the business posted ($0.06) earnings per share. The company’s revenue was up 14.0% on a year-over-year basis. As a group, equities analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In other news, insider Gilbert Fuchsberg sold 3,250 shares of the company’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the transaction, the insider owned 59,094 shares of the company’s stock, valued at approximately $6,428,245.32. This represents a 5.21% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of the business’s stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $109.61, for a total value of $8,220,750.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 386,982 shares of company stock valued at $41,961,592 in the last quarter. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Several hedge funds have recently added to or reduced their stakes in ROKU. Geneos Wealth Management Inc. grew its stake in shares of Roku by 8.4% during the fourth quarter. Geneos Wealth Management Inc. now owns 2,253 shares of the company’s stock valued at $244,000 after buying an additional 175 shares during the last quarter. WPG Advisers LLC purchased a new stake in Roku during the 4th quarter valued at about $31,000. Chicago Partners Investment Group LLC grew its position in Roku by 16.7% during the 4th quarter. Chicago Partners Investment Group LLC now owns 6,688 shares of the company’s stock worth $710,000 after acquiring an additional 955 shares during the last quarter. M&T Bank Corp increased its stake in Roku by 39.6% in the 4th quarter. M&T Bank Corp now owns 7,788 shares of the company’s stock worth $845,000 after purchasing an additional 2,210 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its position in Roku by 6.1% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 61,915 shares of the company’s stock valued at $6,730,000 after purchasing an additional 3,553 shares during the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.