Roku (NASDAQ:ROKU) Stock Price Down 13.6% - Should You Sell?

Key Points

• Roku's stock price has dropped by 13.6%, trading as low as $80.29, with a significant increase in trading volume.
• Several analysts have revised their price targets for Roku, with Guggenheim raising their target to $105.00 and multiple firms issuing "buy" ratings.
• Roku recently reported earnings of $0.07 EPS, exceeding analysts' estimates, and showed a 14.7% increase in quarterly revenue compared to the previous year.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price traded down 13.6% during trading on Friday . The company traded as low as $80.29 and last traded at $81.40. 6,665,255 shares were traded during mid-day trading, an increase of 69% from the average session volume of 3,935,332 shares. The stock had previously closed at $94.16.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Guggenheim lifted their price objective on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday. Redburn Atlantic upgraded Roku from a "neutral" rating to a "buy" rating and set a $100.00 target price on the stock in a report on Monday, April 7th. Loop Capital upgraded Roku from a "hold" rating to a "buy" rating and lifted their target price for the company from $80.00 to $100.00 in a report on Tuesday, June 17th. Bank of America lifted their target price on Roku from $100.00 to $110.00 and gave the company a "buy" rating in a report on Thursday, July 3rd. Finally, Citigroup reiterated a "neutral" rating and issued a $84.00 target price (up previously from $68.00) on shares of Roku in a report on Wednesday, June 18th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $99.36.

Roku Stock Performance

The firm has a market capitalization of $11.74 billion, a P/E ratio of -109.68 and a beta of 2.12. The business has a fifty day moving average of $83.07 and a 200-day moving average of $76.81.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The business had revenue of $1.11 billion during the quarter, compared to analyst estimates of $1.07 billion. During the same period in the prior year, the company posted ($0.18) EPS. The business's revenue for the quarter was up 14.7% compared to the same quarter last year. On average, equities research analysts forecast that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roku news, CFO Dan Jedda sold 3,000 shares of the company's stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total value of $270,600.00. Following the completion of the sale, the chief financial officer directly owned 76,132 shares in the company, valued at $6,867,106.40. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Charles Collier sold 212,559 shares of the company's stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $95.00, for a total value of $20,193,105.00. Following the completion of the sale, the insider owned 200 shares of the company's stock, valued at $19,000. This trade represents a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 308,873 shares of company stock valued at $28,076,913 in the last three months. 13.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

A number of institutional investors have recently added to or reduced their stakes in ROKU. Garde Capital Inc. acquired a new stake in Roku in the first quarter worth approximately $25,000. Banque Transatlantique SA acquired a new stake in Roku in the first quarter worth approximately $28,000. Beaird Harris Wealth Management LLC acquired a new stake in Roku in the first quarter worth approximately $30,000. Golden State Wealth Management LLC lifted its position in Roku by 125.4% in the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after purchasing an additional 247 shares during the period. Finally, Princeton Global Asset Management LLC acquired a new stake in Roku in the first quarter worth approximately $35,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.