Roku (NASDAQ:ROKU) Stock Price Down 1.2% - Time to Sell?

Key Points

• Roku's stock price fell 1.2% to $97.30, with trading volume down 74% from the average.
• Several brokerages upgraded Roku's stock rating, with a consensus rating of "Moderate Buy" and a price target of $98.96.
• Roku reported a quarterly earnings-per-share of $0.07, beating estimates and showing a 14.7% revenue increase compared to the previous year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price was down 1.2% on Thursday . The stock traded as low as $97.35 and last traded at $97.30. Approximately 1,016,522 shares were traded during trading, a decline of 74% from the average daily volume of 3,937,148 shares. The stock had previously closed at $98.47.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on ROKU. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Rosenblatt Securities boosted their target price on shares of Roku from $75.00 to $101.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Wells Fargo & Company raised their price objective on Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. JPMorgan Chase & Co. upped their price objective on shares of Roku from $100.00 to $105.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Finally, KeyCorp increased their target price on Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $98.96.

Roku Price Performance

The firm has a market capitalization of $14.31 billion, a price-to-earnings ratio of -231.31, a PEG ratio of 13.52 and a beta of 2.05. The business's fifty day simple moving average is $89.98 and its 200 day simple moving average is $78.28.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same period last year, the firm earned ($0.18) earnings per share. The business's quarterly revenue was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities research analysts expect that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $89.07, for a total value of $267,210.00. Following the sale, the chief financial officer owned 73,132 shares of the company's stock, valued at approximately $6,513,867.24. The trade was a 3.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CAO Matthew C. Banks sold 3,360 shares of the firm's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $85.05, for a total value of $285,768.00. Following the completion of the sale, the chief accounting officer directly owned 5,195 shares of the company's stock, valued at $441,834.75. This represents a 39.28% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 317,692 shares of company stock worth $29,206,467. Insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Garde Capital Inc. purchased a new position in Roku during the first quarter valued at approximately $25,000. Banque Transatlantique SA purchased a new stake in shares of Roku during the first quarter worth about $28,000. Beaird Harris Wealth Management LLC bought a new stake in Roku in the first quarter valued at $30,000. Golden State Wealth Management LLC boosted its position in Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after acquiring an additional 247 shares in the last quarter. Finally, Princeton Global Asset Management LLC purchased a new stake in shares of Roku in the 1st quarter worth about $35,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

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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