Roku (NASDAQ:ROKU) Shares Down 4.4% – Here’s Why

by · The Cerbat Gem

Roku, Inc. (NASDAQ:ROKU – Get Free Report) fell 4.4% during mid-day trading on Wednesday . The stock traded as low as $94.24 and last traded at $93.8890. 1,386,452 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 3,730,675 shares. The stock had previously closed at $98.26.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on ROKU. Citizens Jmp reaffirmed a “market outperform” rating and issued a $145.00 target price on shares of Roku in a research report on Tuesday. Wall Street Zen downgraded shares of Roku from a “buy” rating to a “hold” rating in a research report on Saturday. Benchmark reiterated a “buy” rating on shares of Roku in a research report on Monday, October 27th. JMP Securities reiterated a “market outperform” rating and issued a $145.00 price objective on shares of Roku in a report on Thursday, October 2nd. Finally, Raymond James Financial restated a “market perform” rating on shares of Roku in a research report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $112.68.

View Our Latest Analysis on ROKU

Roku Price Performance

The firm has a market cap of $13.71 billion, a price-to-earnings ratio of -463.20 and a beta of 1.98. The stock’s fifty day moving average price is $99.04 and its 200-day moving average price is $91.08.

Roku (NASDAQ:ROKU – Get Free Report) last posted its quarterly earnings data on Thursday, October 30th. The company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The firm had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same quarter last year, the business posted ($0.06) EPS. The company’s revenue was up 14.0% on a year-over-year basis. As a group, equities research analysts predict that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In other Roku news, CAO Matthew C. Banks sold 719 shares of Roku stock in a transaction on Tuesday, November 18th. The shares were sold at an average price of $95.09, for a total transaction of $68,369.71. Following the completion of the sale, the chief accounting officer owned 7,285 shares of the company’s stock, valued at $692,730.65. This trade represents a 8.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Charles Collier sold 14,361 shares of the business’s stock in a transaction dated Tuesday, November 18th. The shares were sold at an average price of $94.99, for a total value of $1,364,151.39. Following the completion of the transaction, the insider owned 200 shares in the company, valued at $18,998. This trade represents a 98.63% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 498,733 shares of company stock worth $52,273,682. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Westfuller Advisors LLC acquired a new position in Roku during the third quarter worth $30,000. Root Financial Partners LLC acquired a new position in shares of Roku during the 3rd quarter valued at about $33,000. Cornerstone Planning Group LLC raised its stake in shares of Roku by 20,450.0% in the 3rd quarter. Cornerstone Planning Group LLC now owns 411 shares of the company’s stock valued at $41,000 after acquiring an additional 409 shares in the last quarter. Beaird Harris Wealth Management LLC acquired a new stake in Roku in the 1st quarter worth approximately $30,000. Finally, Banque Transatlantique SA bought a new stake in Roku during the first quarter worth approximately $28,000. Institutional investors own 86.30% of the company’s stock.

About Roku

(Get Free Report)

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.

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