Roku (NASDAQ:ROKU) Stock Price Down 1.4% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 1.4% during trading on Tuesday . The stock traded as low as $68.14 and last traded at $68.22. Approximately 3,993,721 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 4,421,414 shares. The stock had previously closed at $69.20.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the stock. Wedbush raised their price objective on shares of Roku from $75.00 to $85.00 and gave the stock an “outperform” rating in a research note on Friday, October 25th. Bank of America raised their price target on Roku from $75.00 to $90.00 and gave the stock a “buy” rating in a research report on Monday, September 30th. Needham & Company LLC restated a “buy” rating and issued a $100.00 price objective on shares of Roku in a research report on Thursday, October 31st. Citigroup increased their price objective on Roku from $60.00 to $77.00 and gave the company a “neutral” rating in a research note on Wednesday, September 25th. Finally, Benchmark reissued a “buy” rating and issued a $105.00 target price on shares of Roku in a research note on Thursday, September 12th. Two analysts have rated the stock with a sell rating, nine have given a hold rating, twelve have assigned a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat, Roku currently has an average rating of “Moderate Buy” and an average target price of $82.62.

Roku Stock Up 2.1 %

The company has a 50 day simple moving average of $73.97 and a 200 day simple moving average of $65.26. The company has a market capitalization of $9.83 billion, a price-to-earnings ratio of -56.42 and a beta of 2.07.

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

Insider Activity

In other news, insider Gilbert Fuchsberg sold 1,693 shares of the stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total value of $109,012.27. Following the completion of the sale, the insider now owns 38,602 shares in the company, valued at approximately $2,485,582.78. This trade represents a 4.20 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Matthew C. Banks sold 8,693 shares of the company’s stock in a transaction that occurred on Monday, November 18th. The stock was sold at an average price of $71.44, for a total value of $621,027.92. Following the completion of the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at approximately $518,940.16. This represents a 54.48 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 90,240 shares of company stock valued at $6,729,582. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Raelipskie Partnership acquired a new stake in Roku during the 3rd quarter valued at approximately $32,000. Future Financial Wealth Managment LLC purchased a new position in shares of Roku during the 3rd quarter valued at approximately $43,000. GS Investments Inc. grew its position in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in shares of Roku in the second quarter worth $48,000. 86.30% of the stock is owned by hedge funds and other 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.