Roku (NASDAQ:ROKU) Trading Down 1.2% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 1.2% during mid-day trading on Friday . The stock traded as low as $104.00 and last traded at $105.89. Approximately 2,332,128 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 2,976,121 shares. The stock had previously closed at $107.23.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on ROKU. Zacks Research lowered Roku from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 30th. Arete Research set a $132.00 price objective on shares of Roku and gave the company a “buy” rating in a research report on Monday, January 5th. Wedbush raised their target price on shares of Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a report on Thursday, December 11th. Citizens Jmp reiterated a “market outperform” rating and set a $145.00 price target on shares of Roku in a report on Tuesday, December 2nd. Finally, Benchmark reissued a “buy” rating on shares of Roku in a research report on Monday, October 27th. Twenty-two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $118.79.

Roku Stock Performance

The company has a market capitalization of $15.65 billion, a P/E ratio of -529.42 and a beta of 1.95. The company’s fifty day simple moving average is $104.47 and its 200-day simple moving average is $98.61.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.09. The firm had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The company’s revenue was up 14.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.06) EPS. On average, sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, CAO Matthew C. Banks sold 729 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $109.04, for a total value of $79,490.16. Following the completion of the sale, the chief accounting officer directly owned 5,825 shares in the company, valued at $635,158. This trade represents a 11.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of the 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 sale, 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 position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 389,882 shares of company stock valued at $42,251,621. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. grew its holdings in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new stake in Roku in the 4th quarter worth approximately $26,000. Westfuller Advisors LLC acquired a new stake in shares of Roku during the 3rd quarter worth approximately $30,000. Root Financial Partners LLC purchased a new position in shares of Roku during the 3rd quarter valued at approximately $33,000. Finally, Rakuten Securities Inc. lifted its stake in shares of Roku by 55.6% in the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock valued at $39,000 after purchasing an additional 158 shares during the period. Hedge funds and other institutional investors 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.