Roku (NASDAQ:ROKU) Stock Price Down 4.6% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 4.6% during trading on Friday . The company traded as low as $70.76 and last traded at $70.90. 799,276 shares were traded during mid-day trading, a decline of 82% from the average session volume of 4,397,249 shares. The stock had previously closed at $74.32.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ROKU. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Roku in a research report on Thursday, October 31st. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective for the company in a research report on Tuesday, October 1st. Jefferies Financial Group lowered their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective for the company in a research report on Thursday, September 12th. Finally, Benchmark reaffirmed a “buy” rating and issued a $105.00 price objective on shares of Roku in a research report on Thursday, September 12th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $83.95.

Roku Stock Down 6.5 %

The company has a 50 day simple moving average of $74.12 and a 200-day simple moving average of $64.51. The stock has a market cap of $10.09 billion, a price-to-earnings ratio of -59.08 and a beta of 2.07.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.06 billion for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the prior year, the firm posted ($2.33) earnings per share. Roku’s revenue for the quarter was up 16.5% compared to the same quarter last year. On average, equities research analysts expect that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Activity

In other news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, October 10th. The stock was sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at approximately $387,544. This represents a 83.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Gilbert Fuchsberg sold 1,693 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the transaction, the insider now directly owns 38,602 shares of the company’s stock, valued at $2,485,582.78. This trade represents a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 69,776 shares of company stock valued at $5,267,305. 13.98% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. FMR LLC grew its holdings in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after buying an additional 244,793 shares in the last quarter. ARK Investment Management LLC grew its holdings in Roku by 1.3% in the 2nd quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after buying an additional 159,785 shares in the last quarter. Vanguard Group Inc. grew its holdings in Roku by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock worth $778,560,000 after buying an additional 92,658 shares in the last quarter. Holocene Advisors LP bought a new position in Roku in the 3rd quarter worth approximately $129,015,000. Finally, Westfield Capital Management Co. LP grew its holdings in Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after buying an additional 856,401 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.