Roku (NASDAQ:ROKU) Shares Down 2.5% on Insider Selling

Roku, Inc. (NASDAQ:ROKU) was down 2.5% on Monday after an insider sold shares in the company. The stock traded as low as $72.80 and last traded at $72.80. Approximately 547,844 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 4,584,099 shares. The stock had previously closed at $74.69.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total value of $1,875,000.00. Following the completion of the transaction, the chief executive officer now directly owns 5,020 shares of the company’s stock, valued at $376,500. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Charles Collier sold 15,454 shares of the firm’s stock in a transaction dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now directly owns 200 shares in the company, valued at approximately $15,000. The disclosure for this sale can be found here.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Wells Fargo & Company raised Roku from an “underweight” rating to an “equal weight” rating and upped their price target for the company from $50.00 to $72.00 in a research note on Thursday, September 5th. Rosenblatt Securities dropped their target price on Roku from $89.00 to $61.00 and set a “neutral” rating on the stock in a research report on Friday, August 2nd. Needham & Company LLC restated a “buy” rating and issued a $100.00 price target on shares of Roku in a research note on Friday. Guggenheim raised Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective for the company in a research report on Friday, August 23rd. Finally, Wedbush restated an “outperform” rating and set a $75.00 price objective on shares of Roku in a research report on Friday, August 2nd. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have assigned a buy rating to the company. According to MarketBeat, Roku presently has an average rating of “Hold” and a consensus price target of $78.25.

Roku Price Performance

The company has a market capitalization of $10.53 billion, a price-to-earnings ratio of -18.25 and a beta of 2.06. The company’s 50-day moving average price is $61.88 and its two-hundred day moving average price is $60.69.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.45) by $0.21. The business had revenue of $968.18 million for the quarter, compared to analyst estimates of $937.78 million. 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 14.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.76) earnings per share. On average, equities research analysts expect that Roku, Inc. will post -1.45 EPS for the current fiscal year.

Institutional Investors Weigh In On Roku

Institutional investors have recently bought and sold shares of the stock. Granite Bay Wealth Management LLC bought a new position in shares of Roku in the second quarter valued at approximately $1,142,000. Quarry LP increased its holdings in Roku by 127.9% during the 2nd quarter. Quarry LP now owns 1,682 shares of the company’s stock worth $101,000 after acquiring an additional 944 shares during the period. Algert Global LLC boosted its stake in Roku by 144.4% during the second quarter. Algert Global LLC now owns 55,177 shares of the company’s stock valued at $3,307,000 after buying an additional 32,603 shares during the period. Empirical Capital Management LLC raised its stake in Roku by 10.0% in the second quarter. Empirical Capital Management LLC now owns 177,000 shares of the company’s stock valued at $10,608,000 after purchasing an additional 16,031 shares in the last quarter. Finally, Susquehanna Fundamental Investments LLC bought a new position in Roku in the second quarter valued at $3,437,000. 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.