Roku (NASDAQ:ROKU) Share Price Crosses Below Fifty Day Moving Average – What’s Next?

Roku, Inc. (NASDAQ:ROKU) shares passed below its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $155.15 and traded as low as $154.43. Roku shares last traded at $155.12, with a volume of 3,977,128 shares changing hands.

Analyst Ratings Changes

A number of analysts have recently commented on ROKU shares. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. Guggenheim lowered shares of Roku from a “buy” rating to a “neutral” rating and raised their price target for the company from $145.00 to $160.00 in a research note on Friday, August 7th. UBS Group raised their price target on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a research note on Friday, August 7th. Weiss Ratings upgraded Roku from a “hold (c)” rating to a “hold (c+)” rating in a report on Thursday, October 8th. Finally, Citigroup boosted their price objective on Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and eighteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Roku presently has a consensus rating of “Hold” and a consensus price target of $156.17.

Roku Stock Performance

The company has a 50 day moving average of $155.15 and a 200 day moving average of $127.57. The stock has a market capitalization of $23.02 billion, a price-to-earnings ratio of 66.29 and a beta of 2.05.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the company posted $0.07 EPS. The firm’s quarterly revenue was up 21.9% on a year-over-year basis. On average, equities analysts predict that Roku, Inc. will post 2.97 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Matthew Banks sold 554 shares of the firm’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $152.21, for a total value of $84,324.34. Following the transaction, the chief accounting officer directly owned 7,568 shares of the company’s stock, valued at approximately $1,151,925.28. This trade represents a 6.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil Hunt sold 2,000 shares of the business’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $151.09, for a total transaction of $302,180.00. Following the transaction, the director owned 9,629 shares in the company, valued at $1,454,845.61. The trade was a 17.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 119,285 shares of company stock valued at $18,224,865. Corporate insiders own 13.45% of the company’s stock.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Moran Wealth Management LLC purchased a new position in Roku during the first quarter worth approximately $2,990,000. Bank of New York Mellon Corp acquired a new position in Roku during the second quarter worth $105,216,000. Contravisory Investment Management Inc. purchased a new stake in Roku in the 2nd quarter valued at $1,184,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Roku in the 2nd quarter valued at $4,474,000. Finally, California Public Employees Retirement System grew its holdings in Roku by 14.8% in the 1st quarter. California Public Employees Retirement System now owns 260,774 shares of the company’s stock valued at $24,674,000 after buying an additional 33,593 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.