Roku (NASDAQ:ROKU) Stock Price Down 1% – Here’s Why

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 1% on Friday . The stock traded as low as $70.77 and last traded at $71.31. Approximately 638,677 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 4,425,522 shares. The stock had previously closed at $72.03.

Analyst Upgrades and Downgrades

ROKU has been the topic of several recent research reports. Wedbush lifted their price objective on shares of Roku from $75.00 to $85.00 and gave the company an “outperform” rating in a research report on Friday, October 25th. Morgan Stanley raised their price objective on shares of Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research note on Tuesday, October 29th. Loop Capital boosted their target price on Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a report on Thursday, October 31st. Jefferies Financial Group dropped their target price on Roku from $60.00 to $55.00 and set an “underperform” rating on the stock in a report on Friday, November 1st. Finally, Robert W. Baird boosted their target price on Roku from $56.00 to $75.00 and gave the stock a “neutral” rating in a report on Monday, September 30th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $83.95.

Roku Stock Performance

The firm has a market cap of $10.72 billion, a price-to-earnings ratio of -59.42 and a beta of 2.07. The firm’s 50 day moving average is $73.35 and its 200-day moving average is $64.05.

Roku (NASDAQ:ROKU) last released 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 firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The business’s revenue was up 16.5% on a year-over-year basis. During the same quarter in the previous year, the business earned ($2.33) EPS. As a group, research analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the transaction, the chief executive officer now owns 5,020 shares of the company’s stock, valued at approximately $387,544. This represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Charles Collier sold 15,454 shares of the company’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 $1,159,050.00. Following the sale, the insider now owns 200 shares of the company’s stock, valued at $15,000. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the company’s stock in a transaction dated Thursday, October 10th. The shares were sold at an average price of $77.20, for a total transaction of $1,930,000.00. Following the completion of the sale, the chief executive officer now directly owns 5,020 shares in the company, valued at approximately $387,544. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 69,776 shares of company stock valued at $5,267,305 in the last quarter. Insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several large investors have recently added to or reduced their stakes in the company. EverSource Wealth Advisors LLC grew its stake in Roku by 123.4% during the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after buying an additional 375 shares during the last quarter. Future Financial Wealth Managment LLC bought a new stake in shares of Roku during the third quarter valued at approximately $43,000. Geneos Wealth Management Inc. grew its stake in shares of Roku by 835.6% during the first quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock valued at $45,000 after purchasing an additional 610 shares during the last quarter. Cedar Wealth Management LLC bought a new stake in shares of Roku during the second quarter valued at approximately $48,000. Finally, Natixis bought a new stake in shares of Roku during the first quarter valued at approximately $53,000. 86.30% of the stock is owned by institutional investors.

Roku Company Profile

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.