Roku (NASDAQ:ROKU) Trading Down 5% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU) traded down 5% on Tuesday . The stock traded as low as $85.44 and last traded at $86.67. 1,235,338 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 3,671,609 shares. The stock had previously closed at $91.24.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on ROKU shares. Wells Fargo & Company upgraded shares of Roku from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $74.00 to $129.00 in a report on Friday, February 14th. Bank of America upped their price target on shares of Roku from $90.00 to $120.00 and gave the company a “buy” rating in a research note on Friday, February 14th. Pivotal Research upgraded shares of Roku from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $65.00 to $125.00 in a research note on Friday, February 14th. Loop Capital upped their target price on Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research report on Monday, December 9th. Finally, Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating, fourteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, Roku has an average rating of “Moderate Buy” and an average price target of $96.00.

Roku Trading Down 5.1 %

The firm’s fifty day moving average is $81.83 and its 200 day moving average is $75.55. The company has a market cap of $12.64 billion, a PE ratio of -97.06 and a beta of 2.05.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. As a group, sell-side analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $2,510,000.00. Following the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at $2,664,415.20. This trade represents a 48.51 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 15th. The shares were sold at an average price of $77.18, for a total value of $77,180.00. Following the completion of the sale, the chief financial officer now owns 63,555 shares of the company’s stock, valued at $4,905,174.90. This trade represents a 1.55 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 109,421 shares of company stock valued at $9,660,786 over the last quarter. 13.98% of the stock is currently owned by insiders.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. grew its holdings in shares of Roku by 369.9% in the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares during the period. Vision Financial Markets LLC acquired a new position in shares of Roku in the 4th quarter valued at $30,000. Raelipskie Partnership purchased a new position in shares of Roku during the 3rd quarter worth $32,000. Game Plan Financial Advisors LLC acquired a new stake in shares of Roku during the 4th quarter worth about $37,000. Finally, Harvest Fund Management Co. Ltd raised its holdings in Roku by 4,091.7% in the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after buying an additional 491 shares during the period. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Company Profile

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.