Roku (NASDAQ:ROKU) Shares Down 8.3% – What’s Next?

Roku, Inc. (NASDAQ:ROKU)’s share price fell 8.3% during trading on Monday . The stock traded as low as $68.99 and last traded at $70.27. 1,488,528 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 3,705,013 shares. The stock had previously closed at $76.67.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on the company. UBS Group increased their price objective on Roku from $73.00 to $90.00 and gave the company a “neutral” rating in a report on Friday, February 14th. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research note on Monday, November 18th. Citizens Jmp raised shares of Roku to a “strong-buy” rating in a report on Tuesday, January 21st. Wedbush reiterated an “outperform” rating and issued a $100.00 target price on shares of Roku in a research note on Monday, February 10th. Finally, Loop Capital upped their price target on shares of Roku from $70.00 to $80.00 and gave the company a “hold” rating in a research note on Monday, December 9th. One analyst has rated the stock with a sell rating, seven have given a hold rating, fourteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $96.71.

Roku Trading Down 7.2 %

The stock’s fifty day moving average price is $82.29 and its 200 day moving average price is $77.05. The stock has a market cap of $10.38 billion, a P/E ratio of -79.94 and a beta of 2.12.

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. The company had revenue of $1.20 billion during the quarter, compared to the consensus estimate of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. On average, analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 15th. The stock was sold at an average price of $77.18, for a total transaction of $77,180.00. Following the transaction, the chief financial officer now directly owns 63,555 shares in the company, valued at $4,905,174.90. This trade represents a 1.55 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the business’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 completion of the sale, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,664,415.20. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 118,308 shares of company stock worth $10,362,166 in the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roku

Large investors have recently added to or reduced their stakes in the company. FMR LLC raised its stake in shares of Roku by 31.7% during the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares during the last quarter. Marshall Wace LLP raised its position in Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares during the last quarter. Holocene Advisors LP purchased a new stake in Roku in the 3rd quarter worth approximately $129,015,000. Cadian Capital Management LP bought a new stake in shares of Roku in the 4th quarter worth approximately $87,632,000. Finally, Jacobs Levy Equity Management Inc. increased its stake in shares of Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock valued at $96,402,000 after buying an additional 1,082,548 shares during the period. 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.