Roku (NASDAQ:ROKU) Trading Down 1.6% – Time to Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 1.6% on Tuesday . The stock traded as low as $85.43 and last traded at $88.58. Approximately 5,843,253 shares changed hands during trading, an increase of 49% from the average daily volume of 3,922,639 shares. The stock had previously closed at $90.06.

Analyst Ratings Changes

ROKU has been the topic of several analyst reports. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 10th. Jefferies Financial Group upgraded shares of Roku from a “hold” rating to a “buy” rating and boosted their price objective for the company from $100.00 to $135.00 in a research report on Thursday, December 11th. Rosenblatt Securities upgraded shares of Roku from a “neutral” rating to a “buy” rating and increased their target price for the stock from $106.00 to $118.00 in a report on Friday. Bank of America boosted their price target on Roku from $115.00 to $140.00 and gave the company a “buy” rating in a report on Monday, January 12th. Finally, KeyCorp upped their price target on Roku from $128.00 to $130.00 and gave the company an “overweight” rating in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $123.96.

Roku Stock Performance

The company has a 50-day simple moving average of $103.37 and a two-hundred day simple moving average of $99.00. The firm has a market capitalization of $13.09 billion, a P/E ratio of 158.00 and a beta of 1.99.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25. The firm had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. Roku had a return on equity of 3.42% and a net margin of 1.87%.The business’s revenue for the quarter was up 16.1% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.24) EPS. As a group, research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, CFO Dan Jedda sold 3,000 shares of the business’s stock in a transaction dated Thursday, January 15th. The shares were sold at an average price of $107.56, for a total transaction of $322,680.00. Following the sale, the chief financial officer owned 87,267 shares of the company’s stock, valued at $9,386,438.52. The trade was a 3.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Gilbert Fuchsberg sold 3,250 shares of the company’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $108.78, for a total transaction of $353,535.00. Following the completion of the sale, the insider owned 59,094 shares in the company, valued at approximately $6,428,245.32. This trade represents a 5.21% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 216,710 shares of company stock worth $22,494,968. Corporate insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

A number of hedge funds have recently made changes to their positions in ROKU. Blue Trust Inc. increased its position in Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after buying an additional 204 shares in the last quarter. Aventura Private Wealth LLC purchased a new stake in shares of Roku in the fourth quarter worth $26,000. WPG Advisers LLC bought a new position in shares of Roku during the fourth quarter valued at $31,000. Westfuller Advisors LLC purchased a new position in shares of Roku in the 3rd quarter worth about $30,000. Finally, Root Financial Partners LLC bought a new position in Roku in the 3rd quarter worth about $33,000. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.