Roku (ROKU) Shares Down 6.3% After Insider Selling

Roku Inc (NASDAQ:ROKU) shares fell 6.3% during trading on Thursday after an insider sold shares in the company. The company traded as low as $56.53 and last traded at $57.01. 8,276,921 shares traded hands during trading, an increase of 24% from the average session volume of 6,686,820 shares. The stock had previously closed at $60.84.

Specifically, CEO Anthony J. Wood sold 125,000 shares of Roku stock in a transaction that occurred on Tuesday, October 16th. The stock was sold at an average price of $62.21, for a total value of $7,776,250.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 421,549 shares of Roku stock in a transaction that occurred on Wednesday, September 19th. The stock was sold at an average price of $70.89, for a total value of $29,883,608.61. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,352,026 shares of company stock worth $84,706,047. Corporate insiders own 0.55% of the company’s stock.

A number of research firms have issued reports on ROKU. Cannonball Research lifted their price objective on Roku from $68.00 to $97.00 and gave the stock a “buy” rating in a research note on Monday, October 1st. Our analysis of the composition of advertising revenue growth gives us incremental comfort with our revenue forecast for FY18-20. It also supports our Buy thesis based on the belief that ROKU works only if the advertising revenue story works. We think that inventory sell through which has been a relatively small revenue driver so far can become more significant in the mid-term. BidaskClub downgraded Roku from a “buy” rating to a “hold” rating in a research note on Friday. Royal Bank of Canada raised Roku from a “sector perform” rating to an “outperform” rating and lifted their price objective for the stock from $48.00 to $70.00 in a research note on Friday. Oppenheimer raised Roku from a “market perform” rating to an “outperform” rating and set a $50.00 price objective on the stock in a research note on Tuesday, July 3rd. Finally, Zacks Investment Research cut Roku from a “buy” rating to a “hold” rating in a report on Tuesday, July 31st. Eight analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of “Buy” and an average target price of $63.82.

The firm has a market capitalization of $6.05 billion and a P/E ratio of -24.15.

Institutional investors have recently made changes to their positions in the company. BNP Paribas Arbitrage SA purchased a new position in shares of Roku in the 1st quarter worth approximately $156,000. SevenBridge Financial Group LLC purchased a new position in Roku during the 2nd quarter valued at $158,000. Rikoon Group LLC purchased a new position in Roku during the 1st quarter valued at $202,000. Gabelli Funds LLC purchased a new position in Roku during the 2nd quarter valued at $213,000. Finally, Cynosure Advisors LLC purchased a new position in Roku during the 2nd quarter valued at $217,000. Hedge funds and other institutional investors own 33.75% of the company’s stock.

Roku Company Profile (NASDAQ:ROKU)

Roku, Inc operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts.

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