Roku (NASDAQ:ROKU) Stock Price Down 3.7% - What's Next?

Key Points

• Roku shares fell 3.7% during trading, closing at $90.22 after a low of $90.66, with trading volume down 75% compared to the average.
• Analysts have set varied price targets for Roku, with Piper Sandler raising its price objective to $84.00 while Wells Fargo reduced it to $93.00, reflecting differing outlooks on the company's performance.
• CEO Anthony J. Wood sold 25,000 shares of Roku stock for approximately $2.24 million, reducing his ownership by 67.65%, amid increased insider selling activity.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares traded down 3.7% on Tuesday . The stock traded as low as $90.66 and last traded at $90.22. 947,886 shares changed hands during mid-day trading, a decline of 75% from the average session volume of 3,866,147 shares. The stock had previously closed at $93.65.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Piper Sandler lifted their target price on shares of Roku from $65.00 to $84.00 and gave the stock a "neutral" rating in a research note on Thursday, July 10th. Benchmark reiterated a "buy" rating and issued a $130.00 target price on shares of Roku in a research note on Friday, May 2nd. Bank of America lifted their target price on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, July 3rd. KeyCorp lifted their target price on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a research note on Friday. Finally, Guggenheim lifted their target price on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research note on Friday. 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 MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $97.04.

Roku Stock Down 12.2%

The firm has a market capitalization of $12.06 billion, a P/E ratio of -112.92 and a beta of 2.12. The firm's 50-day simple moving average is $83.07 and its 200-day simple moving average is $76.81.

Roku (NASDAQ:ROKU - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.16) by $0.23. Roku had a negative net margin of 2.49% and a negative return on equity of 4.29%. 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 previous year, the business posted ($0.18) earnings per share. Roku's revenue for the quarter was up 14.7% on a year-over-year basis. As a group, analysts expect that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity at Roku

In other news, Director Mai Fyfield sold 914 shares of the business's stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $78.50, for a total value of $71,749.00. Following the completion of the sale, the director directly owned 4,374 shares in the company, valued at approximately $343,359. The trade was a 17.28% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Charles Collier sold 212,559 shares of the business'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 transaction of $20,193,105.00. Following the completion of the sale, the insider owned 200 shares of the company's stock, valued at approximately $19,000. The trade was a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 308,873 shares of company stock valued at $28,076,913. Company insiders own 13.98% of the company's stock.

Institutional Investors Weigh In On Roku

Hedge funds have recently made changes to their positions in the business. Garde Capital Inc. purchased a new position in shares of Roku in the first quarter worth $25,000. Beaird Harris Wealth Management LLC purchased a new position in shares of Roku in the first quarter worth $30,000. Banque Transatlantique SA purchased a new position in shares of Roku in the first quarter worth $28,000. Golden State Wealth Management LLC increased its stake in shares of 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 buying an additional 247 shares during the period. Finally, JFS Wealth Advisors LLC increased its stake in shares of Roku by 327.1% in the second quarter. JFS Wealth Advisors LLC now owns 457 shares of the company's stock worth $40,000 after buying an additional 350 shares during the period. 86.30% of the stock is currently owned by institutional investors.

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.