Roku (NASDAQ:ROKU) Stock Price Down 20.9% – Here’s What Happened

Roku, Inc. (NASDAQ:ROKU) was down 20.9% during mid-day trading on Thursday . The stock traded as low as $61.15 and last traded at $61.34. Approximately 7,287,286 shares were traded during mid-day trading, an increase of 67% from the average daily volume of 4,354,477 shares. The stock had previously closed at $77.51.

Analysts Set New Price Targets

Several research analysts have weighed in on ROKU shares. Citigroup upped their price objective on shares of Roku from $60.00 to $77.00 and gave the stock a “neutral” rating in a report on Wednesday, September 25th. Robert W. Baird upped their target price on shares of Roku from $56.00 to $75.00 and gave the stock a “neutral” rating in a report on Monday, September 30th. Wells Fargo & Company upgraded Roku from an “underweight” rating to an “equal weight” rating and lifted their price target for the company from $50.00 to $72.00 in a research note on Thursday, September 5th. Moffett Nathanson raised Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective for the company in a research note on Tuesday, October 1st. Finally, Bank of America lifted their target price on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and twelve have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $83.80.

Roku Price Performance

The stock has a market cap of $8.76 billion, a P/E ratio of -15.37 and a beta of 2.08. The firm’s fifty day moving average price is $73.24 and its two-hundred day moving average price is $63.66.

Roku (NASDAQ:ROKU) last announced its earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.35) by $0.29. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. The company’s quarterly revenue was up 16.5% compared to the same quarter last year. During the same period in the prior year, the company earned ($2.33) EPS. On average, research analysts expect that Roku, Inc. will post -1.43 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In other news, insider Gilbert Fuchsberg sold 1,693 shares of the stock in a transaction on Wednesday, September 4th. The shares were sold at an average price of $64.39, for a total value of $109,012.27. Following the transaction, the insider now owns 38,602 shares of the company’s stock, valued at $2,485,582.78. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the transaction, the chief executive officer now directly owns 5,020 shares in the company, valued at $376,500. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Gilbert Fuchsberg sold 1,693 shares of Roku stock in a transaction that occurred on Wednesday, September 4th. The stock was sold at an average price of $64.39, for a total transaction of $109,012.27. Following the transaction, the insider now directly owns 38,602 shares in the company, valued at $2,485,582.78. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 69,566 shares of company stock worth $5,254,000 over the last three months. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently made changes to their positions in the business. Concurrent Investment Advisors LLC purchased a new stake in Roku during the third quarter valued at about $274,000. United Advisor Group LLC bought a new stake in shares of Roku in the 3rd quarter valued at about $1,068,000. QRG Capital Management Inc. purchased a new stake in Roku during the 3rd quarter valued at about $214,000. Harbor Capital Advisors Inc. grew its position in Roku by 6.3% during the 3rd quarter. Harbor Capital Advisors Inc. now owns 8,806 shares of the company’s stock worth $657,000 after acquiring an additional 524 shares during the last quarter. Finally, US Bancorp DE increased its stake in Roku by 15.7% in the 3rd quarter. US Bancorp DE now owns 3,090 shares of the company’s stock worth $231,000 after purchasing an additional 420 shares during the period. Institutional investors own 86.30% of the company’s stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.