Roku (NASDAQ:ROKU) Trading Down 5.9% - What's Next?

Key Points

• Shares fell 5.9% to $94.80 on Thursday (trading as low as $94.35) with volume down about 24% versus the average; market cap is roughly $14B and the stock sits just below its 50‑ and 200‑day moving averages.
• Roku beat quarterly estimates — $0.53 EPS vs. $0.28 expected and $1.39B revenue (+16.1% YoY) — but analysts still model about -$0.30 EPS for the current year.
• Analyst sentiment is broadly positive (consensus Moderate Buy) with an average price target of $125.40 and individual targets up to $140, while insiders have sold roughly 154,374 shares (~$15.7M) in the last 90 days.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares fell 5.9% on Thursday . The stock traded as low as $94.35 and last traded at $94.80. 2,881,528 shares changed hands during trading, a decline of 24% from the average session volume of 3,774,231 shares. The stock had previously closed at $100.74.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on ROKU shares. Needham & Company LLC reiterated a "buy" rating and set a $110.00 price target on shares of Roku in a research report on Friday, February 13th. Citigroup reissued a "market outperform" rating on shares of Roku in a report on Monday, March 2nd. Pivotal Research raised their price target on Roku from $135.00 to $140.00 and gave the company a "buy" rating in a research report on Monday, February 16th. Guggenheim lifted their price target on Roku from $110.00 to $115.00 and gave the stock a "buy" rating in a research note on Thursday, December 4th. Finally, Morgan Stanley set a $135.00 price objective on shares of Roku and gave the stock an "overweight" rating in a research report on Tuesday, December 16th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $125.40.

Roku Price Performance

The company has a market cap of $13.98 billion, a PE ratio of 166.32 and a beta of 1.98. The firm has a 50-day simple moving average of $98.65 and a two-hundred day simple moving average of $99.76.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.25. The business had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. Roku had a return on equity of 3.40% and a net margin of 1.87%.The business's revenue was up 16.1% on a year-over-year basis. During the same period in the prior year, the business earned ($0.24) earnings per share. Equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Buying and Selling

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the firm's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $95.57, for a total transaction of $310,602.50. Following the sale, the insider directly owned 60,456 shares of the company's stock, valued at $5,777,779.92. This trade represents a 5.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Christopher T. Handman sold 2,999 shares of Roku stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $286,614.43. Following the sale, the senior vice president owned 2,999 shares of the company's stock, valued at approximately $286,614.43. This trade represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 154,374 shares of company stock worth $15,712,283 in the last 90 days. 13.98% of the stock is currently owned by corporate insiders.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently bought and sold shares of the company. Empowered Funds LLC lifted its stake in shares of Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock worth $232,000 after purchasing an additional 515 shares during the period. Focus Partners Wealth acquired a new position in Roku in the first quarter valued at $229,000. Savant Capital LLC increased its stake in Roku by 109.4% in the second quarter. Savant Capital LLC now owns 14,104 shares of the company's stock valued at $1,240,000 after purchasing an additional 7,367 shares during the last quarter. Prospera Financial Services Inc purchased a new position in Roku during the second quarter worth about $1,285,000. Finally, Campbell & CO Investment Adviser LLC purchased a new position in Roku during the second quarter worth about $256,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Company Profile

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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