Roku (NASDAQ:ROKU) Stock Price Down 14.6% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shares traded down 14.6% on Thursday . The company traded as low as $60.70 and last traded at $60.98. 2,450,382 shares traded hands during trading, a decline of 34% from the average session volume of 3,706,637 shares. The stock had previously closed at $71.42.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the stock. FBN Securities assumed coverage on shares of Roku in a research note on Friday, March 28th. They issued an “outperform” rating and a $93.00 price target for the company. Pivotal Research raised Roku from a “hold” rating to a “buy” rating and increased their target price for the stock from $65.00 to $125.00 in a research report on Friday, February 14th. Compass Point began coverage on Roku in a research report on Sunday, March 23rd. They set a “buy” rating on the stock. Wells Fargo & Company upgraded Roku from an “equal weight” rating to an “overweight” rating and increased their price objective for the stock from $74.00 to $129.00 in a report on Friday, February 14th. Finally, Needham & Company LLC reissued a “buy” rating and set a $120.00 price objective on shares of Roku in a research report on Monday, March 24th. One research analyst has rated the stock with a sell rating, five have given a hold rating, seventeen have issued a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $96.55.

Roku Stock Down 8.3 %

The company has a market cap of $8.07 billion, a P/E ratio of -62.11 and a beta of 2.17. The company has a fifty day moving average of $79.65 and a 200 day moving average of $77.37.

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

Insider Buying and Selling at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on Friday, January 10th. The stock was sold at an average price of $79.77, for a total transaction of $1,994,250.00. Following the transaction, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,116,936.26. The trade was a 48.51 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Dan Jedda sold 5,000 shares of the company’s stock in a transaction dated Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the sale, the chief financial officer now owns 58,555 shares of the company’s stock, valued at approximately $5,878,922. The trade was a 7.87 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 97,905 shares of company stock valued at $8,632,306. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Institutional investors and hedge funds have recently modified their holdings of the company. Versant Capital Management Inc boosted its holdings in Roku by 283.2% in the 1st quarter. Versant Capital Management Inc now owns 3,644 shares of the company’s stock worth $257,000 after buying an additional 2,693 shares during the period. Central Pacific Bank Trust Division purchased a new position in shares of Roku in the first quarter valued at about $469,000. Wealth Enhancement Advisory Services LLC grew its position in shares of Roku by 19.7% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 6,225 shares of the company’s stock worth $463,000 after purchasing an additional 1,024 shares in the last quarter. Audent Global Asset Management LLC raised its stake in Roku by 222.9% during the 4th quarter. Audent Global Asset Management LLC now owns 21,127 shares of the company’s stock valued at $1,571,000 after purchasing an additional 14,584 shares during the period. Finally, Siemens Fonds Invest GmbH purchased a new position in Roku in the 4th quarter worth approximately $1,681,000. 86.30% of the stock is currently 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.