Roku (NASDAQ:ROKU) Shares Down 1.5% – Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 1.5% on Tuesday . The company traded as low as $81.63 and last traded at $82.23. Approximately 620,950 shares were traded during trading, a decline of 86% from the average daily volume of 4,378,192 shares. The stock had previously closed at $83.44.

Wall Street Analyst Weigh In

ROKU has been the subject of a number of research reports. Moffett Nathanson upgraded 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. Morgan Stanley boosted their price objective on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Benchmark reiterated a “buy” rating and issued a $105.00 target price on shares of Roku in a research report on Thursday, September 12th. Wedbush restated an “outperform” rating and set a $100.00 price target (up from $85.00) on shares of Roku in a report on Friday, December 6th. Finally, Guggenheim upgraded Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a report on Friday, August 23rd. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $83.81.

Roku Price Performance

The firm has a market capitalization of $12.12 billion, a P/E ratio of -69.74 and a beta of 2.06. The company’s 50 day moving average price is $75.14 and its 200 day moving average price is $67.22.

Roku (NASDAQ:ROKU) last issued its earnings results 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 net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same quarter last year, the firm earned ($2.33) EPS. The company’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, research analysts anticipate that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Insider Activity

In related news, insider Charles Collier sold 10,771 shares of the stock in a transaction that occurred on Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the sale, the insider now directly owns 3,790 shares in the company, valued at $269,620.60. This trade represents a 73.97 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 10th. The shares were sold at an average price of $82.64, for a total transaction of $2,066,000.00. Following the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at approximately $2,193,100.32. This represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 72,096 shares of company stock valued at $5,578,493 in the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Large investors have recently made changes to their positions in the company. Raelipskie Partnership bought a new stake in shares of Roku in the third quarter worth about $32,000. Future Financial Wealth Managment LLC bought a new position in Roku in the third quarter valued at approximately $43,000. GS Investments Inc. boosted its holdings in shares of Roku by 33.4% in the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after buying an additional 147 shares during the period. EverSource Wealth Advisors LLC increased its position in shares of Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after acquiring an additional 375 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in Roku in the 2nd quarter valued at $48,000. Institutional investors own 86.30% of the company’s stock.

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.