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

Roku, Inc. (NASDAQ:ROKU) gapped down before the market opened on Thursday . The stock had previously closed at $77.51, but opened at $68.00. Roku shares last traded at $63.15, with a volume of 2,740,257 shares trading hands.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on ROKU. Benchmark restated a “buy” rating and set a $105.00 price objective on shares of Roku in a research note on Thursday, September 12th. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 price target on shares of Roku in a research report on Thursday. JPMorgan Chase & Co. boosted their price target on shares of Roku from $90.00 to $92.00 and gave the stock an “overweight” rating in a research report on Thursday, October 10th. Macquarie reiterated an “outperform” rating and issued a $90.00 price target on shares of Roku in a research report on Thursday. Finally, Wells Fargo & Company upgraded 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 research report on Thursday, September 5th. Two investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat.com, Roku has an average rating of “Hold” and an average price target of $83.80.

Roku Trading Down 21.5 %

The company has a market cap of $8.77 billion, a price-to-earnings ratio of -15.37 and a beta of 2.08. The business has a fifty day moving average price of $73.24 and a two-hundred day moving average price of $63.66.

Roku (NASDAQ:ROKU) last issued its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to the consensus estimate of $1.02 billion. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The firm’s quarterly revenue was up 16.5% on a year-over-year basis. During the same quarter in the prior year, the company earned ($2.33) EPS. On average, analysts anticipate that Roku, Inc. will post -1.43 EPS for the current year.

Insider Activity

In other news, insider Gilbert Fuchsberg sold 1,693 shares of the company’s stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total value of $109,012.27. Following the transaction, the insider now owns 38,602 shares in the company, valued at $2,485,582.78. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total value of $1,875,000.00. Following the transaction, the chief executive officer now owns 5,020 shares in the company, valued at approximately $376,500. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of the stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total value of $109,012.27. Following the completion of the transaction, the insider now owns 38,602 shares in the company, valued at $2,485,582.78. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 69,566 shares of company stock worth $5,254,000 in the last 90 days. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently added to or reduced their stakes in the company. Concurrent Investment Advisors LLC acquired a new position in Roku in the third quarter worth approximately $274,000. United Advisor Group LLC bought a new stake in Roku during the third quarter worth approximately $1,068,000. QRG Capital Management Inc. bought a new stake in Roku during the third quarter worth approximately $214,000. Harbor Capital Advisors Inc. boosted its position in Roku by 6.3% during the third quarter. Harbor Capital Advisors Inc. now owns 8,806 shares of the company’s stock worth $657,000 after purchasing an additional 524 shares during the period. Finally, US Bancorp DE boosted its position in Roku by 15.7% during the third quarter. US Bancorp DE now owns 3,090 shares of the company’s stock worth $231,000 after purchasing an additional 420 shares during the period. 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.