Roku (NASDAQ:ROKU) Stock Price Down 1.7% - Should You Sell?

Key Points

• Roku's stock price dropped 1.7% to close at $86.64, with a significant decrease in trading volume, down 79% from its average.
• Wall Street analysts have a favorable outlook, with an average rating of "Moderate Buy" and a target price of $98.96, though one analyst has issued a sell rating.
• Recent insider transactions indicate significant selling activity, with 337,233 shares sold by insiders in the last three months, raising concerns about insider confidence in the stock.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) fell 1.7% on Thursday . The company traded as low as $86.34 and last traded at $86.64. 857,456 shares changed hands during trading, a decline of 79% from the average session volume of 4,006,411 shares. The stock had previously closed at $88.09.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on ROKU. UBS Group raised their price target on shares of Roku from $72.00 to $95.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Loop Capital upgraded Roku from a "hold" rating to a "buy" rating and raised their price objective for the stock from $80.00 to $100.00 in a research note on Tuesday, June 17th. Wedbush restated an "outperform" rating and set a $100.00 price objective on shares of Roku in a research note on Monday, July 28th. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, Wells Fargo & Company raised their price objective on Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, nineteen have assigned a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $98.96.

Roku Stock Down 1.5%

The business's 50 day moving average is $85.69 and its two-hundred day moving average is $77.29. The firm has a market capitalization of $12.79 billion, a P/E ratio of -206.73, a PEG ratio of 11.80 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results 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. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%. Roku's revenue was up 14.7% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.18) earnings per share. As a group, equities analysts anticipate that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Transactions at Roku

In related news, CAO Matthew C. Banks sold 3,360 shares of Roku stock in a transaction dated Monday, August 4th. The stock was sold at an average price of $85.05, for a total transaction of $285,768.00. Following the transaction, the chief accounting officer directly owned 5,195 shares of the company's stock, valued at $441,834.75. The trade was a 39.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 212,559 shares of Roku stock in a transaction dated 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 transaction, the insider directly owned 200 shares in the company, valued at $19,000. This represents a 99.91% decrease in their position. The disclosure for this sale can be found here. Insiders sold 337,233 shares of company stock valued at $30,423,181 in the last three months. 13.98% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its holdings in shares of Roku by 1.4% during the 2nd quarter. Vanguard Group Inc. now owns 12,675,816 shares of the company's stock valued at $1,114,077,000 after buying an additional 172,221 shares during the last quarter. Acadian Asset Management LLC lifted its holdings in Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company's stock worth $236,545,000 after purchasing an additional 785,864 shares during the last quarter. Marshall Wace LLP lifted its holdings in Roku by 663.9% in the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock worth $173,644,000 after purchasing an additional 2,030,036 shares during the last quarter. T. Rowe Price Investment Management Inc. lifted its holdings in Roku by 10.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company's stock worth $168,734,000 after purchasing an additional 215,841 shares during the last quarter. Finally, Tableaux LLC acquired a new stake in Roku in the 2nd quarter worth approximately $1,746,000. Hedge funds and other institutional investors 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.

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