Roku (NASDAQ:ROKU) Shares Down 1.8% – Should You Sell?

Shares of Roku, Inc. (NASDAQ:ROKU) traded down 1.8% during trading on Friday . The stock traded as low as $108.13 and last traded at $108.82. 3,291,972 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 3,733,353 shares. The stock had previously closed at $110.87.

Key Stores Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku added multiple free channels and quietly expanded free content, which can boost engagement and ad impressions on its platform. Article Title
• Positive Sentiment: Reports that Roku rolled out 11 new free channels increase the company’s content breadth and could lift viewing hours and ad revenue. Article Title
• Positive Sentiment: Holiday promotions: multiple outlets note steep discounts on Roku devices and TVs (Streaming Stick HD/4K and Roku Smart TV), which should boost unit sales and drive new MAUs if shipping and inventory align. Article Title Article Title Article Title
• Neutral Sentiment: Some consumer-facing how-to pieces (troubleshooting, best settings) are circulating — helpful for retention but limited direct market impact. Article Title Article Title
• Neutral Sentiment: Zacks notes elevated investor attention; this can increase volatility but doesn’t alter fundamentals by itself. Article Title
• Negative Sentiment: Multiple privacy/tracking stories urge users to change settings or call out tracking practices — these raise reputational and regulatory risk and could depress ad yield if users opt out. Article Title Article Title
• Neutral Sentiment: A promotional piece claims temporary holiday access to premium apps for users — useful for engagement but often short-lived and of unclear long-term monetization impact. Article Title

Analyst Ratings Changes

A number of brokerages have commented on ROKU. Jefferies Financial Group upgraded Roku from a “hold” rating to a “buy” rating and increased their target price for the company from $100.00 to $135.00 in a report on Thursday, December 11th. Wall Street Zen raised Roku from a “hold” rating to a “buy” rating in a research note on Sunday, December 7th. Benchmark reiterated a “buy” rating on shares of Roku in a research report on Monday, October 27th. Wedbush upped their target price on shares of Roku from $115.00 to $130.00 and gave the company an “outperform” rating in a report on Thursday, December 11th. Finally, Wells Fargo & Company raised their price target on shares of Roku from $113.00 to $116.00 and gave the stock an “overweight” rating in a research note on Friday, October 31st. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $116.91.

Roku Stock Performance

The firm has a market capitalization of $16.08 billion, a price-to-earnings ratio of -544.07 and a beta of 1.98. The business has a fifty day moving average price of $99.88 and a 200 day moving average price of $93.58.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. The firm had revenue of $1.21 billion for the quarter, compared to analysts’ expectations of $1.21 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm’s revenue for the quarter was up 14.0% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.06) earnings per share. On average, analysts expect that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $108.78, for a total transaction of $353,535.00. Following the completion of the sale, the insider directly owned 59,094 shares in the company, valued at $6,428,245.32. The trade was a 5.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the firm’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $96.18, for a total transaction of $192,360.00. Following the completion of the transaction, the director directly owned 7,782 shares in the company, valued at approximately $748,472.76. This represents a 20.45% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 468,918 shares of company stock worth $49,840,981. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

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