Roku (NASDAQ:ROKU) Trading Down 1.4% - Here's Why

Roku, Inc. (NASDAQ:ROKU - Get Free Report) dropped 1.4% during trading on Monday . The stock traded as low as $85.82 and last traded at $87.07. Approximately 647,986 shares traded hands during trading, a decline of 83% from the average daily volume of 3,842,934 shares. The stock had previously closed at $88.27.

Analyst Ratings Changes

ROKU has been the subject of several analyst reports. JMP Securities reaffirmed a "market outperform" rating and set a $95.00 target price on shares of Roku in a report on Tuesday, June 17th. Bank of America increased their price objective on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday. Needham & Company LLC reissued a "buy" rating and issued a $88.50 price objective on shares of Roku in a research note on Tuesday, June 17th. FBN Securities initiated coverage on Roku in a research note on Friday, March 28th. They issued an "outperform" rating and a $93.00 price objective for the company. Finally, Loop Capital raised Roku from a "hold" rating to a "buy" rating and increased their price objective for the stock from $80.00 to $100.00 in a research note on Tuesday, June 17th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $90.37.

Roku Trading Down 0.2%

The firm has a market cap of $12.85 billion, a price-to-earnings ratio of -120.63 and a beta of 2.12. The stock has a fifty day moving average price of $74.99 and a 200 day moving average price of $75.33.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating analysts' consensus estimates of ($0.27) by $0.08. The business had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm's revenue for the quarter was up 15.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.35) EPS. On average, sell-side analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 7,181 shares of the stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $75.00, for a total transaction of $538,575.00. Following the transaction, the insider owned 10,970 shares of the company's stock, valued at approximately $822,750. This represents a 39.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Matthew C. Banks sold 629 shares of the firm's stock in a transaction that occurred on Tuesday, June 3rd. The shares were sold at an average price of $72.98, for a total value of $45,904.42. Following the completion of the sale, the chief accounting officer directly owned 8,555 shares in the company, valued at $624,343.90. This trade represents a 6.85% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 64,020 shares of company stock worth $4,979,594 in the last 90 days. Company insiders own 13.98% of the company's stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jacobs Levy Equity Management Inc. grew its holdings in Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after buying an additional 1,082,548 shares during the last quarter. Geode Capital Management LLC grew its holdings in Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock valued at $159,353,000 after buying an additional 56,820 shares during the last quarter. Lecap Asset Management Ltd. acquired a new stake in Roku in the 1st quarter valued at approximately $511,000. Charles Schwab Investment Management Inc. grew its holdings in Roku by 3.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company's stock valued at $73,661,000 after buying an additional 34,898 shares during the last quarter. Finally, Achmea Investment Management B.V. grew its holdings in shares of Roku by 146.4% during the 4th quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company's stock worth $756,000 after purchasing an additional 6,042 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

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.