Roku (NASDAQ:ROKU) Stock Price Down 0.5% – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shares fell 0.5% on Friday . The stock traded as low as $67.77 and last traded at $68.37. 655,577 shares changed hands during trading, a decline of 85% from the average session volume of 4,407,962 shares. The stock had previously closed at $68.68.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on ROKU shares. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Needham & Company LLC reiterated a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Thursday, October 31st. UBS Group began coverage on Roku in a research note on Friday. They set a “neutral” rating and a $73.00 target price for the company. Jefferies Financial Group reduced their price target on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a research report on Friday, November 1st. Finally, Wedbush boosted their price objective on Roku from $75.00 to $85.00 and gave the stock an “outperform” rating in a research report on Friday, October 25th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $84.14.

Roku Price Performance

The firm has a market cap of $10.05 billion, a price-to-earnings ratio of -57.67 and a beta of 2.07. The stock has a 50-day moving average price of $74.45 and a 200 day moving average price of $65.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm’s revenue was up 16.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($2.33) earnings per share. As a group, equities research analysts predict that Roku, Inc. will post -1.1 earnings per share for the current year.

Insiders Place Their Bets

In related news, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction dated Monday, November 18th. The stock was sold at an average price of $71.44, for a total transaction of $621,027.92. Following the transaction, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Gilbert Fuchsberg sold 1,693 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the sale, the insider now directly owns 38,602 shares of the company’s stock, valued at approximately $2,485,582.78. This represents a 4.20 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 90,240 shares of company stock valued at $6,729,582. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Institutional investors have recently bought and sold shares of the company. Sender Co & Partners Inc. purchased a new stake in shares of Roku in the third quarter valued at about $827,000. M&T Bank Corp boosted its holdings in Roku by 19.1% in the 3rd quarter. M&T Bank Corp now owns 7,024 shares of the company’s stock valued at $525,000 after purchasing an additional 1,126 shares in the last quarter. Raelipskie Partnership purchased a new stake in Roku in the 3rd quarter valued at approximately $32,000. Nomura Asset Management Co. Ltd. increased its position in Roku by 14.1% during the 3rd quarter. Nomura Asset Management Co. Ltd. now owns 36,420 shares of the company’s stock worth $2,719,000 after purchasing an additional 4,500 shares during the period. Finally, MML Investors Services LLC raised its stake in shares of Roku by 9.8% during the 3rd quarter. MML Investors Services LLC now owns 10,592 shares of the company’s stock worth $791,000 after buying an additional 948 shares in the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

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.