Roku (NASDAQ:ROKU) Shares Down 2% - Here's What Happened

Key Points

• Roku's stock price fell 2% to $81.48 amid a significant decline in trading volume, down 74% from its average session volume.
• Analysts' ratings show a mixed sentiment, with one sell rating, seven holds, nineteen buys, and two strong buys, resulting in an average rating of "Moderate Buy" and a consensus price target of $98.96.
• Recent insider transactions include CEO Anthony J. Wood selling 25,000 shares in July, reducing his stake in the company by 67.65%.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price fell 2% on Friday . The stock traded as low as $81.34 and last traded at $81.48. 1,048,413 shares were traded during mid-day trading, a decline of 74% from the average session volume of 4,016,225 shares. The stock had previously closed at $83.11.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. KeyCorp raised their price objective on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. JMP Securities increased their target price on shares of Roku from $95.00 to $110.00 and gave the company a "market outperform" rating in a research note on Monday, July 21st. Bank of America upped their price target on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. Rosenblatt Securities raised their price objective on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research note on Friday, August 1st. Finally, Evercore ISI reduced their target price on Roku from $105.00 to $80.00 and set an "in-line" rating for the company in a report on Friday, May 2nd. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $98.96.

Roku Stock Down 1.3%

The stock's 50-day moving average price is $84.77 and its 200-day moving average price is $77.20. The company has a market capitalization of $11.97 billion, a price-to-earnings ratio of -195.36, a price-to-earnings-growth ratio of 11.89 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.23. The firm had revenue of $1.11 billion for the quarter, compared to the consensus estimate of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%. The business's revenue for the quarter was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.18) EPS. On average, equities research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $89.64, for a total transaction of $2,241,000.00. Following the transaction, the chief executive officer directly owned 11,953 shares in the company, valued at $1,071,466.92. The trade was a 67.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Dan Jedda sold 3,000 shares of the stock in a transaction dated Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total transaction of $270,600.00. Following the sale, the chief financial officer owned 76,132 shares in the company, valued at $6,867,106.40. The trade was a 3.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 312,233 shares of company stock worth $28,362,681 over the last quarter. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the company. Marshall Wace LLP increased its stake in Roku by 663.9% in the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock valued at $173,644,000 after purchasing an additional 2,030,036 shares in the last quarter. Acadian Asset Management LLC raised its holdings in shares of Roku by 456.7% in the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after purchasing an additional 1,563,449 shares during the last quarter. Cadian Capital Management LP bought a new position in shares of Roku during the 4th quarter worth approximately $87,632,000. Jacobs Levy Equity Management Inc. grew its stake 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 purchasing an additional 1,082,548 shares during the period. Finally, Two Sigma Investments LP raised its position in Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock worth $90,017,000 after acquiring an additional 726,077 shares during the period. Institutional investors and hedge funds 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.

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