Roku (NASDAQ:ROKU) Trading Down 2.4% - Should You Sell?

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded down 2.4% during mid-day trading on Wednesday . The stock traded as low as $65.85 and last traded at $67.62. 1,314,146 shares traded hands during mid-day trading, a decline of 64% from the average session volume of 3,687,445 shares. The stock had previously closed at $69.28.

Wall Street Analyst Weigh In

Several analysts recently weighed in on ROKU shares. JPMorgan Chase & Co. dropped their price objective on Roku from $115.00 to $75.00 and set an "overweight" rating for the company in a research report on Tuesday, April 22nd. Compass Point began coverage on shares of Roku in a research note on Sunday, March 23rd. They issued a "buy" rating on the stock. Wedbush lowered their price objective on shares of Roku from $125.00 to $100.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Citizens Jmp upgraded shares of Roku to a "strong-buy" rating in a research report on Tuesday, January 21st. Finally, Jefferies Financial Group upgraded shares of Roku from an "underperform" rating to a "hold" rating and upped their price target for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat.com, Roku presently has an average rating of "Moderate Buy" and an average target price of $89.46.

Roku Stock Performance

The stock has a fifty day simple moving average of $68.66 and a two-hundred day simple moving average of $75.16. The stock has a market capitalization of $8.98 billion, a price-to-earnings ratio of -69.16 and a beta of 2.06.

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

Insider Activity

In other news, CFO Dan Jedda sold 1,000 shares of the firm's stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the sale, the chief financial officer now directly owns 68,843 shares in the company, valued at $5,163,225. This trade represents a 1.43 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $87.93, for a total value of $2,198,250.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares in the company, valued at approximately $2,333,486.34. The trade was a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 72,111 shares of company stock worth $6,575,362 in the last quarter. 13.98% of the stock is owned by corporate insiders.

Institutional Trading of Roku

Several hedge funds have recently bought and sold shares of the business. Fortis Group Advisors LLC lifted its stake in shares of Roku by 15.0% in the first quarter. Fortis Group Advisors LLC now owns 9,315 shares of the company's stock valued at $656,000 after buying an additional 1,217 shares in the last quarter. Cullen Frost Bankers Inc. raised its holdings in shares of Roku by 9,422.2% in the 1st quarter. Cullen Frost Bankers Inc. now owns 857 shares of the company's stock worth $60,000 after acquiring an additional 848 shares during the last quarter. Wealthfront Advisers LLC lifted its position in Roku by 9.1% in the 1st quarter. Wealthfront Advisers LLC now owns 5,634 shares of the company's stock valued at $397,000 after acquiring an additional 472 shares in the last quarter. Dakota Wealth Management acquired a new position in Roku during the 1st quarter valued at about $2,168,000. Finally, OVERSEA CHINESE BANKING Corp Ltd bought a new stake in Roku during the 1st quarter worth approximately $234,000. 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.