Roku (NASDAQ:ROKU) Trading Down 1.1% - Should You Sell?

Key Points

• Roku shares slipped 1.1% in Monday trading, with volume running below average. The stock last traded around $128.07 after hitting an intraday low of $127.51.
• Several analysts turned more upbeat on Roku, including Robert W. Baird raising its price target to $160 and keeping an Outperform rating. Overall, the stock now carries a consensus Moderate Buy with a target price of $143.42.
• Roku recently posted a strong quarter, beating earnings and revenue estimates with EPS of $0.57 versus $0.34 expected and revenue of $1.25 billion, up 22.4% year over year. The company also announced it will stream the inaugural Enhanced Games in North America on Roku Sports Channel, adding to its ad-supported content lineup.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price fell 1.1% during mid-day trading on Monday . The company traded as low as $127.51 and last traded at $128.07. 2,240,504 shares were traded during trading, a decline of 31% from the average session volume of 3,262,944 shares. The stock had previously closed at $129.53.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Robert W. Baird raised its price target on Roku to $160 from $130 and kept an Outperform rating, signaling greater confidence in the stock’s upside. Tickerreport.com
• Positive Sentiment: Roku announced it will be the North American streaming home for the inaugural Enhanced Games, airing free on the Roku Sports Channel on May 24. The deal adds another event to Roku’s ad-supported content lineup and could help engagement. PR Newswire
• Neutral Sentiment: Multiple articles highlighted Roku devices, TV promotions, and user tips, including a discounted Roku Ultra and a low-priced Roku TV. These items may support consumer awareness, but they are more retail-oriented than direct stock drivers. Gizmodo
• Neutral Sentiment: Roku’s short-interest filing showed zero shares short and no meaningful change in the reported period, making it unlikely to affect trading sentiment. No article link available

Analysts Set New Price Targets

A number of brokerages have issued reports on ROKU. Zacks Research lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Benchmark lifted their target price on shares of Roku from $130.00 to $160.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Citizens Jmp lifted their price objective on shares of Roku from $160.00 to $170.00 and gave the company a "market outperform" rating in a research note on Friday, May 1st. Jefferies Financial Group lifted their price objective on shares of Roku from $135.00 to $140.00 and gave the company a "buy" rating in a research note on Monday, April 13th. Finally, Susquehanna lifted their price objective on shares of Roku from $130.00 to $160.00 and gave the company a "positive" rating in a research note on Friday, May 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $143.42.

Roku Stock Performance

The firm's 50 day moving average is $102.76 and its 200-day moving average is $101.52. The firm has a market cap of $18.88 billion, a price-to-earnings ratio of 96.29 and a beta of 2.04.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. The firm had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The business's revenue was up 22.4% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.19) EPS. As a group, research analysts predict that Roku, Inc. will post 2.41 EPS for the current year.

Insider Activity

In other Roku news, CEO Anthony J. Wood sold 50,000 shares of the business's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $99.68, for a total transaction of $4,984,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Gilbert Fuchsberg sold 9,593 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the transaction, the insider directly owned 50,863 shares of the company's stock, valued at approximately $6,384,323.76. This represents a 15.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 663,038 shares of company stock worth $70,956,545 in the last 90 days. Insiders own 13.45% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Blue Trust Inc. grew its position in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company's stock worth $25,000 after buying an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new stake in Roku during the fourth quarter worth about $26,000. Bayban grew its position in Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after buying an additional 260 shares in the last quarter. Westfuller Advisors LLC acquired a new stake in Roku during the third quarter worth about $30,000. Finally, WPG Advisers LLC acquired a new stake in Roku during the fourth quarter worth about $31,000. Institutional investors and hedge funds own 86.30% of the company's stock.

About Roku

Roku, Inc NASDAQ: ROKU is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company's platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku's product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.

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