Roku (NASDAQ:ROKU) Stock Price Down 1.5% – Should You Sell?

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 1.5% during mid-day trading on Wednesday . The stock traded as low as $124.55 and last traded at $125.68. Approximately 2,551,186 shares were traded during mid-day trading, a decline of 21% from the average daily volume of 3,231,777 shares. The stock had previously closed at $127.63.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the stock. Moffett Nathanson reiterated a “neutral” rating and set a $100.00 price target on shares of Roku in a report on Friday, February 13th. Wedbush boosted their price objective on shares of Roku from $140.00 to $155.00 and gave the company an “outperform” rating in a research report 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. Piper Sandler increased their target price on shares of Roku from $140.00 to $148.00 and gave the stock an “overweight” rating in a report on Friday, May 1st. Finally, Citizens Jmp boosted their price target on Roku from $160.00 to $170.00 and gave the company a “market outperform” rating in a report on Friday, May 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and an average price target of $143.42.

Roku Stock Performance

The firm has a market capitalization of $18.53 billion, a PE ratio of 94.50 and a beta of 2.04. The stock’s 50-day simple moving average is $104.78 and its 200-day simple moving average is $102.19.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm had revenue of $1.25 billion during the quarter, compared to analysts’ expectations of $1.20 billion. During the same period last year, the company posted ($0.19) EPS. The company’s quarterly revenue was up 22.4% compared to the same quarter last year. As a group, analysts predict that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $122.11, for a total value of $244,220.00. Following the completion of the transaction, the director owned 7,782 shares of the company’s stock, valued at approximately $950,260.02. This represents a 20.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $110.19, for a total value of $2,754,750.00. 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 sold a total of 613,038 shares of company stock valued at $66,417,045 over the last ninety days. 13.45% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Empowered Funds LLC boosted its holdings in shares of Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock valued at $232,000 after buying an additional 515 shares in the last quarter. Focus Partners Wealth purchased a new position in Roku during the 1st quarter valued at about $229,000. EverSource Wealth Advisors LLC lifted its position in Roku by 145.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock valued at $123,000 after acquiring an additional 826 shares during the period. First Trust Advisors LP boosted its stake in Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company’s stock worth $6,221,000 after acquiring an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. bought a new stake in Roku during the second quarter worth about $326,000. 86.30% of the stock is owned by hedge funds and other 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.