Roku (NASDAQ:ROKU) Trading Down 2% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s share price fell 2% on Friday . The company traded as low as $89.90 and last traded at $90.91. 611,108 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 3,680,575 shares. The stock had previously closed at $92.79.

Analyst Ratings Changes

A number of brokerages have issued reports on ROKU. Pivotal Research raised shares of Roku from a “hold” rating to a “buy” rating and boosted their target price for the company from $65.00 to $125.00 in a report on Friday, February 14th. Morgan Stanley boosted their price objective on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Rosenblatt Securities restated a “neutral” rating and issued a $86.00 target price on shares of Roku in a research note on Thursday, February 13th. Baird R W raised Roku from a “hold” rating to a “strong-buy” rating in a report on Monday, November 18th. Finally, Bank of America increased their price target on shares of Roku from $90.00 to $120.00 and gave the stock a “buy” rating in a report on Friday, February 14th. Two investment analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Roku presently has a consensus rating of “Moderate Buy” and an average price target of $96.00.

Roku Stock Down 4.2 %

The stock has a 50-day simple moving average of $81.67 and a two-hundred day simple moving average of $75.14. The firm has a market cap of $12.97 billion, a PE ratio of -99.84 and a beta of 2.05.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping 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 company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Activity

In related news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the completion of the sale, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. This represents a 1.53 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $79.77, for a total value of $1,994,250.00. Following the transaction, the chief executive officer now 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 disclosure for this sale can be found here. In the last 90 days, insiders sold 109,421 shares of company stock valued at $9,660,786. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Geneos Wealth Management Inc. grew its holdings in Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock worth $25,000 after acquiring an additional 270 shares during the last quarter. Vision Financial Markets LLC purchased a new stake in shares of Roku during the fourth quarter worth about $30,000. Raelipskie Partnership bought a new stake in shares of Roku in the third quarter worth about $32,000. Game Plan Financial Advisors LLC purchased a new position in Roku during the 4th quarter valued at about $37,000. Finally, Harvest Fund Management Co. Ltd raised its position in Roku by 4,091.7% during the 4th quarter. Harvest Fund Management Co. Ltd now owns 503 shares of the company’s stock valued at $37,000 after purchasing an additional 491 shares during the last quarter. 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.