Roku (NASDAQ:ROKU) Trading Down 1.1% – Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 1.1% on Monday . The company traded as low as $127.51 and last traded at $128.07. Approximately 2,240,504 shares were traded during trading, a decline of 31% from the average daily volume of 3,262,944 shares. The stock had previously closed at $129.53.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Robert W. Baird raised its price target on Roku to $160 from $130 and kept an Outperform rating, signaling greater confidence in the stock’s upside. Tickerreport.com
• Positive Sentiment: Roku announced it will be the North American streaming home for the inaugural Enhanced Games, airing free on the Roku Sports Channel on May 24. The deal adds another event to Roku’s ad-supported content lineup and could help engagement. PR Newswire
• Neutral Sentiment: Multiple articles highlighted Roku devices, TV promotions, and user tips, including a discounted Roku Ultra and a low-priced Roku TV. These items may support consumer awareness, but they are more retail-oriented than direct stock drivers. Gizmodo
• Neutral Sentiment: Roku’s short-interest filing showed zero shares short and no meaningful change in the reported period, making it unlikely to affect trading sentiment. No article link available

Wall Street Analyst Weigh In

ROKU has been the topic of a number of recent research reports. Wedbush lifted their target price on Roku from $140.00 to $155.00 and gave the stock an “outperform” rating in a research report on Friday, May 1st. Robert W. Baird increased their price target on shares of Roku from $130.00 to $160.00 and gave the stock an “outperform” rating in a research report on Monday. Piper Sandler increased their price target on shares of Roku from $140.00 to $148.00 and gave the stock an “overweight” rating in a research report on Friday, May 1st. Moffett Nathanson reissued a “neutral” rating and issued a $100.00 price target on shares of Roku in a research report on Friday, February 13th. Finally, Citizens Jmp increased their price target on shares of Roku from $160.00 to $170.00 and gave the stock a “market outperform” rating in a research report on Friday, May 1st. Twenty-one investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat, Roku has an average rating of “Moderate Buy” and a consensus price target of $143.42.

Roku Price Performance

The stock has a market capitalization of $18.88 billion, a P/E ratio of 96.29 and a beta of 2.04. The company’s 50 day simple moving average is $102.76 and its two-hundred day simple moving average is $101.52.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The business had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the business earned ($0.19) EPS. Roku’s revenue was up 22.4% compared to the same quarter last year. On average, research analysts anticipate that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, insider Charles Collier sold 20,538 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $124.23, for a total value of $2,551,435.74. Following the completion of the sale, the insider owned 7,700 shares in the company, valued at approximately $956,571. This trade represents a 72.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $110.19, for a total transaction of $2,754,750.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 663,038 shares of company stock valued at $70,956,545 in the last 90 days. 13.45% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of ROKU. Blue Trust Inc. boosted its position in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares during the last quarter. Aventura Private Wealth LLC acquired a new position in shares of Roku during the fourth quarter valued at $26,000. Bayban boosted its holdings in Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after acquiring an additional 260 shares during the last quarter. Westfuller Advisors LLC acquired a new stake in Roku in the third quarter worth about $30,000. Finally, WPG Advisers LLC bought a new stake in Roku during the 4th quarter worth about $31,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

About Roku

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.