Roku (NASDAQ:ROKU) Trading Down 1.5% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 1.5% on Thursday . The company traded as low as $156.15 and last traded at $156.25. 2,544,066 shares changed hands during trading, a decline of 29% from the average session volume of 3,571,655 shares. The stock had previously closed at $158.60.

Analysts Set New Price Targets

ROKU has been the topic of a number of recent research reports. Wedbush downgraded shares of Roku from an “outperform” rating to a “neutral” rating and set a $155.00 price objective on the stock. in a report on Tuesday, June 16th. JPMorgan Chase & Co. started coverage on shares of Roku in a research report on Monday. They issued a “neutral” rating and a $160.00 target price for the company. UBS Group lifted their price target on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Evercore cut shares of Roku from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 15th. Finally, Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Roku presently has a consensus rating of “Hold” and an average target price of $156.17.

Roku Stock Performance

The firm has a fifty day moving average price of $145.66 and a 200 day moving average price of $121.55. The company has a market cap of $23.19 billion, a price-to-earnings ratio of 66.77 and a beta of 2.01.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the company earned $0.07 earnings per share. The firm’s revenue for the quarter was up 21.9% on a year-over-year basis. On average, analysts expect that Roku, Inc. will post 2.82 EPS for the current fiscal year.

Insider Activity at Roku

In other news, CFO Dan Jedda sold 7,000 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the transaction, the chief financial officer owned 79,963 shares in the company, valued at approximately $11,504,276.81. This trade represents a 8.05% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 10,719 shares of Roku stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $150.00, for a total transaction of $1,607,850.00. Following the completion of the sale, the insider owned 40,380 shares of the company’s stock, valued at approximately $6,057,000. The trade was a 20.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 162,452 shares of company stock worth $22,052,982 over the last ninety days. Company insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently made changes to their positions in the stock. Absolute Gestao de Investimentos Ltda. bought a new position in shares of Roku in the 2nd quarter valued at $8,427,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Roku during the 2nd quarter worth $4,474,000. California State Teachers Retirement System increased its holdings in Roku by 13,741.7% in the 2nd quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company’s stock worth $2,888,886,000 after purchasing an additional 20,761,653 shares in the last quarter. Readystate Asset Management LP acquired a new position in Roku in the 2nd quarter worth about $22,373,000. Finally, Wedmont Private Capital bought a new position in Roku in the second quarter valued at about $262,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.