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

Key Points

• Roku shares fell below their 50-day moving average of $155.15, trading as low as $154.43, while the stock’s 200-day average stood at $127.57.
• Analyst sentiment remains mixed: Roku has an overall “Hold” rating and an average price target of $156.17, with 18 analysts rating it a hold, seven issuing buys, and one assigning a strong-buy rating.
• Roku exceeded quarterly expectations, reporting $1.08 in EPS versus a $0.61 estimate and $1.35 billion in revenue, up 21.9% year over year; however, insiders sold 119,285 shares worth approximately $18.2 million over the past 90 days.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price 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 traded.

Wall Street Analyst Weigh In

ROKU has been the topic of a number of recent analyst reports. Seaport Research Partners lowered shares of Roku from a "buy" rating to a "neutral" rating in a research note on Friday, August 7th. Needham & Company LLC reiterated a "buy" rating on shares of Roku in a research note on Friday, August 7th. Wedbush reiterated a "neutral" rating and set a $155.00 price objective on shares of Roku in a research note on Thursday, September 24th. JPMorgan Chase & Co. initiated coverage on shares of Roku in a report on Monday, August 24th. They set a "neutral" rating and a $160.00 price objective on the stock. Finally, Zacks Research raised Roku from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and eighteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, Roku currently has an average rating of "Hold" and an average price target of $156.17.

Roku Price Performance

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

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%. The firm had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the prior year, the firm earned $0.07 earnings per share. Roku's revenue for the quarter was up 21.9% on a year-over-year basis. As a group, equities analysts expect that Roku, Inc. will post 2.97 earnings per share for the current fiscal year.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 20,538 shares of the company's stock in a transaction on Monday, October 5th. The shares were sold at an average price of $151.63, for a total value of $3,114,176.94. Following the sale, the insider directly owned 22,700 shares of the company's stock, valued at $3,442,001. This represents a 47.50% decrease in their position. The transaction 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, CFO Dan Jedda sold 7,000 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $152.84, for a total transaction of $1,069,880.00. Following the completion of the sale, the chief financial officer owned 67,811 shares in the company, valued at $10,364,233.24. The trade was a 9.36% decrease in their position. 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. In the last 90 days, insiders sold 119,285 shares of company stock worth $18,224,865. Corporate insiders own 13.45% of the company's stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in ROKU. Signature Equity Partners LLC increased its position in shares of Roku by 1,225.0% in the third quarter. Signature Equity Partners LLC now owns 212 shares of the company's stock valued at $32,000 after buying an additional 196 shares in the last quarter. CX Institutional raised its stake in shares of Roku by 44.1% during the 3rd quarter. CX Institutional now owns 281 shares of the company's stock worth $43,000 after buying an additional 86 shares during the period. Elevation Wealth Partners LLC raised its stake in shares of Roku by 208.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock worth $44,000 after buying an additional 215 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Roku during the 3rd quarter valued at approximately $46,000. Finally, Coppell Advisory Solutions LLC purchased a new position in shares of Roku during the 2nd quarter valued at approximately $47,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.