Roku (NASDAQ:ROKU) Stock Price Down 2.7% – Here’s Why

Roku, Inc. (NASDAQ:ROKU) shares dropped 2.7% on Friday . The stock traded as low as $120.66 and last traded at $122.26. Approximately 1,966,640 shares traded hands during mid-day trading, a decline of 35% from the average daily volume of 3,042,151 shares. The stock had previously closed at $125.59.

Wall Street Analyst Weigh In

ROKU has been the subject of several recent research reports. UBS Group set a $170.00 target price on shares of Roku in a research note on Thursday, May 28th. Pivotal Research reiterated a “buy” rating and issued a $160.00 target price (up from $140.00) on shares of Roku in a research note on Friday, May 1st. Zacks Research downgraded shares of Roku from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, April 14th. Wells Fargo & Company lifted their target price on shares of Roku from $137.00 to $167.00 and gave the stock an “overweight” rating in a research note on Friday, May 1st. Finally, Jefferies Financial Group lifted their target price on shares of Roku from $135.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, April 13th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Roku currently has an average rating of “Moderate Buy” and an average target price of $145.29.

Roku Stock Down 2.7%

The business’s 50-day moving average price is $114.77 and its 200 day moving average price is $105.03. The company has a market capitalization of $18.02 billion, a P/E ratio of 91.93 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the business earned ($0.19) earnings per share. Roku’s revenue was up 22.4% compared to the same quarter last year. Analysts anticipate that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Insider Activity

In other news, CFO Dan Jedda sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $94.23, for a total value of $1,413,450.00. Following the completion of the transaction, the chief financial officer directly owned 85,115 shares in the company, valued at approximately $8,020,386.45. This trade represents a 14.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $128.79, for a total transaction of $9,659,250.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 696,631 shares of company stock valued at $77,636,680 over the last ninety days. 13.45% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently modified their holdings of ROKU. Blue Trust Inc. boosted its position in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new position in Roku in the 4th quarter worth approximately $26,000. Bayban grew its stake in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after buying an additional 260 shares in the last quarter. WPG Advisers LLC purchased a new position in Roku in the 4th quarter worth approximately $31,000. Finally, Safe Harbor Fiduciary LLC purchased a new position in Roku in the 4th quarter worth approximately $31,000. 86.30% of the stock is currently 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.