Roku (NASDAQ:ROKU) Trading Down 3.9% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU) shares traded down 3.9% during mid-day trading on Tuesday . The stock traded as low as $113.46 and last traded at $114.11. 2,800,191 shares traded hands during trading, a decline of 15% from the average session volume of 3,301,928 shares. The stock had previously closed at $118.73.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on ROKU. Arete Research set a $132.00 price target on Roku and gave the stock a “buy” rating in a research note on Monday, January 5th. Evercore reiterated an “outperform” rating and set a $150.00 price objective on shares of Roku in a research report on Friday, February 13th. UBS Group reissued a “neutral” rating and issued a $110.00 target price on shares of Roku in a report on Friday, February 13th. Oppenheimer raised their target price on shares of Roku from $105.00 to $120.00 and gave the company an “outperform” rating in a research note on Friday, February 13th. Finally, Wells Fargo & Company raised their target price on shares of Roku from $116.00 to $137.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $128.21.

Roku Stock Down 3.9%

The company has a market capitalization of $16.82 billion, a PE ratio of 200.20 and a beta of 2.00. The company’s 50 day moving average is $96.24 and its two-hundred day moving average is $99.96.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.25. The company had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Roku had a net margin of 1.87% and a return on equity of 3.40%. Roku’s quarterly revenue was up 16.1% on a year-over-year basis. During the same period last year, the company posted ($0.24) earnings per share. Analysts forecast that Roku, Inc. will post 2.1 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction 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 Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charles Collier sold 205,821 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the transaction, the insider owned 11,131 shares of the company’s stock, valued at $1,168,755. This trade represents a 94.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 426,375 shares of company stock worth $43,390,928 over the last three months. 13.98% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. lifted its position in Roku by 2.5% during the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after purchasing an additional 322,858 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Roku by 10.6% in the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after acquiring an additional 274,024 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Roku by 7.3% in the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after acquiring an additional 168,214 shares during the last quarter. Holocene Advisors LP lifted its holdings in shares of Roku by 352.3% in 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 during the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in shares of Roku by 0.8% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company’s stock worth $163,786,000 after acquiring an additional 12,705 shares during the last quarter. 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.