Roku (NASDAQ:ROKU) Shares Down 5.4% – Time to Sell?

Roku, Inc. (NASDAQ:ROKU)’s share price traded down 5.4% during trading on Wednesday . The company traded as low as $91.77 and last traded at $92.98. 4,444,716 shares were traded during mid-day trading, an increase of 19% from the average session volume of 3,744,511 shares. The stock had previously closed at $98.26.

Analyst Upgrades and Downgrades

ROKU has been the topic of several research analyst reports. Zacks Research upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 31st. Benchmark reissued a “buy” rating on shares of Roku in a research note on Monday, October 27th. Evercore ISI reissued a “positive” rating on shares of Roku in a report on Friday, October 31st. Susquehanna reaffirmed a “positive” rating and issued a $130.00 price target on shares of Roku in a report on Friday, October 31st. Finally, Wedbush restated an “outperform” rating and issued a $110.00 price target on shares of Roku in a report on Monday, October 27th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $112.68.

Roku Stock Performance

The stock has a 50 day moving average of $99.04 and a 200-day moving average of $91.08. The company has a market cap of $13.74 billion, a PE ratio of -464.88 and a beta of 1.98.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The business had revenue of $1.21 billion during the quarter, compared to analysts’ expectations of $1.21 billion. During the same quarter in the previous year, the firm posted ($0.06) EPS. The company’s revenue for the quarter was up 14.0% on a year-over-year basis. Equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current year.

Insider Activity

In related news, CEO Anthony J. Wood sold 50,000 shares of the stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $103.86, for a total value of $5,193,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the business’s stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total transaction of $5,052,700.00. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 498,733 shares of company stock valued at $52,273,682. 13.98% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. GAMMA Investing LLC increased its stake in Roku by 9.5% during the 3rd quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock worth $112,000 after buying an additional 97 shares during the period. Cornerstone Wealth Management LLC raised its position in shares of Roku by 3.8% during the 3rd quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock worth $273,000 after buying an additional 100 shares in the last quarter. Thoroughbred Financial Services LLC raised its stake in shares of Roku by 1.0% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock worth $995,000 after buying an additional 100 shares in the last quarter. Aviance Capital Partners LLC lifted its holdings in Roku by 2.6% in the 3rd quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock valued at $418,000 after acquiring an additional 106 shares during the last quarter. Finally, O Keefe Stevens Advisory Inc. boosted its position in shares of Roku by 1.8% during the 3rd quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company’s stock valued at $624,000 after purchasing an additional 113 shares in the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

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.