Roku (NASDAQ:ROKU) Shares Down 2.2% - Here's What Happened

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price traded down 2.2% during trading on Friday . The company traded as low as $67.67 and last traded at $68.22. 615,015 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 3,762,305 shares. The stock had previously closed at $69.77.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on ROKU shares. FBN Securities assumed coverage on Roku in a research note on Friday, March 28th. They set an "outperform" rating and a $93.00 price objective on the stock. Citigroup cut their target price on Roku from $81.00 to $68.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 6th. Benchmark restated a "buy" rating and set a $130.00 price target on shares of Roku in a report on Friday, May 2nd. Compass Point initiated coverage on shares of Roku in a research note on Sunday, March 23rd. They set a "buy" rating for the company. Finally, Moffett Nathanson upgraded shares of Roku from a "sell" rating to a "neutral" rating and set a $70.00 price objective on the stock in a research report on Tuesday, March 4th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $87.93.

Roku Stock Down 1.1%

The company has a 50 day moving average of $66.03 and a 200-day moving average of $74.48. The stock has a market capitalization of $10.07 billion, a P/E ratio of -77.55 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The business had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $1.01 billion. During the same period last year, the firm posted ($0.35) earnings per share. The business's revenue was up 15.8% on a year-over-year basis. Equities analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 4,600 shares of the firm's stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $345,000.00. Following the sale, the chief executive officer now directly owns 6,243 shares in the company, valued at $468,225. This trade represents a 42.42% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Matthew C. Banks sold 1,906 shares of the business's stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $80.36, for a total transaction of $153,166.16. Following the completion of the sale, the chief accounting officer now directly owns 7,256 shares in the company, valued at approximately $583,092.16. This represents a 20.80% decrease in their position. The disclosure for this sale can be found here. Insiders sold 15,100 shares of company stock valued at $1,164,215 over the last 90 days. 13.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in the business. FMR LLC raised its holdings in Roku by 31.7% in the 4th quarter. FMR LLC now owns 19,183,942 shares of the company's stock valued at $1,426,134,000 after acquiring an additional 4,613,570 shares in the last quarter. Marshall Wace LLP grew its holdings in Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock worth $173,644,000 after acquiring an additional 2,030,036 shares during the last quarter. Acadian Asset Management LLC grew its stake 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 worth $134,222,000 after purchasing an additional 1,563,449 shares during the last quarter. Cadian Capital Management LP bought a new stake in shares of Roku in the 4th quarter valued at about $87,632,000. Finally, Jacobs Levy Equity Management Inc. increased its stake in shares of Roku by 505.3% in the fourth 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 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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