Roku (NASDAQ:ROKU) Trading Down 5.2% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s share price was down 5.2% on Monday . The company traded as low as $83.46 and last traded at $84.42. Approximately 3,277,968 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 3,855,195 shares. The stock had previously closed at $89.06.

Analyst Ratings Changes

Several equities analysts have recently weighed in on ROKU shares. Zacks Research upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, February 10th. Raymond James Financial reissued a “market perform” rating on shares of Roku in a research note on Friday, October 31st. Bank of America raised their price objective on Roku from $115.00 to $140.00 and gave the company a “buy” rating in a report on Monday, January 12th. Oppenheimer upped their target price on shares of Roku from $105.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, February 13th. Finally, Pivotal Research increased their target price on shares of Roku from $135.00 to $140.00 and gave the company a “buy” rating in a research report on Monday, February 16th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $123.96.

Roku Stock Performance

The firm’s 50-day moving average price is $101.88 and its two-hundred day moving average price is $99.11. The stock has a market cap of $12.45 billion, a price-to-earnings ratio of 148.11 and a beta of 1.99.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter last year, the firm earned ($0.24) EPS. The business’s revenue was up 16.1% compared to the same quarter last year. As a group, sell-side analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In other Roku news, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $90.79, for a total transaction of $4,539,500.00. 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 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 transaction of $79,490.16. Following the completion of the transaction, the chief accounting officer directly owned 5,825 shares of the company’s stock, valued at $635,158. This represents a 11.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 219,710 shares of company stock worth $22,761,608. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in Roku by 275.5% during the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Tableaux LLC acquired a new stake in Roku in the second quarter valued at approximately $1,746,000. Fred Alger Management LLC lifted its stake in Roku by 7,087.7% in the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after acquiring an additional 1,401,664 shares during the last quarter. Holocene Advisors LP grew its holdings in Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after acquiring an additional 1,285,585 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Roku in the 4th quarter valued at approximately $92,808,000. 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.