Roku (NASDAQ:ROKU) Stock Price Down 1.5% on Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 1.5% during mid-day trading on Friday after an insider sold shares in the company. The stock traded as low as $76.09 and last traded at $76.26. Approximately 655,810 shares traded hands during trading, a decline of 86% from the average daily volume of 4,568,213 shares. The stock had previously closed at $77.45.

Specifically, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 17th. The stock was sold at an average price of $75.33, for a total value of $75,330.00. Following the completion of the transaction, the chief financial officer now owns 54,267 shares of the company’s stock, valued at approximately $4,087,933.11. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on ROKU. JPMorgan Chase & Co. boosted their price objective on Roku from $80.00 to $90.00 and gave the company an “overweight” rating in a research report on Wednesday. Wells Fargo & Company raised shares of Roku from an “underweight” rating to an “equal weight” rating and boosted their price target for the stock from $50.00 to $72.00 in a report on Thursday, September 5th. Macquarie decreased their price objective on shares of Roku from $88.00 to $72.00 and set an “outperform” rating on the stock in a report on Friday, August 2nd. Wolfe Research raised shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price for the company in a research note on Thursday, September 12th. Finally, Guggenheim upgraded shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target for the company in a research report on Friday, August 23rd. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating and twelve have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $78.75.

Roku Stock Performance

The firm’s 50-day moving average price is $63.33 and its two-hundred day moving average price is $61.15. The stock has a market cap of $11.00 billion, a price-to-earnings ratio of -19.05 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.21. Roku had a negative net margin of 13.16% and a negative return on equity of 21.03%. The company had revenue of $968.18 million for the quarter, compared to analyst estimates of $937.78 million. During the same period in the previous year, the business posted ($0.76) EPS. Roku’s revenue was up 14.3% on a year-over-year basis. As a group, sell-side analysts expect that Roku, Inc. will post -1.45 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Roku

Large investors have recently modified their holdings of the business. Sumitomo Mitsui Trust Holdings Inc. increased its position in shares of Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock worth $478,939,000 after purchasing an additional 1,457,925 shares during the last quarter. Nikko Asset Management Americas Inc. boosted its stake in Roku by 25.8% during the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after buying an additional 1,455,408 shares during the period. Norges Bank acquired a new stake in shares of Roku during the fourth quarter valued at about $90,386,000. Quadrature Capital Ltd purchased a new stake in shares of Roku in the 4th quarter valued at approximately $35,856,000. Finally, Vanguard Group Inc. lifted its holdings in shares of Roku by 3.3% in the 4th quarter. Vanguard Group Inc. now owns 11,853,947 shares of the company’s stock worth $1,086,533,000 after acquiring an additional 380,409 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Company Profile

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.