Roku (NASDAQ:ROKU) Trading Down 6.7% on Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price traded down 6.7% on Wednesday after an insider sold shares in the company. The company traded as low as $67.12 and last traded at $68.69. 2,745,573 shares traded hands during trading, a decline of 38% from the average session volume of 4,406,017 shares. The stock had previously closed at $73.61.

Specifically, CAO Matthew C. Banks sold 8,693 shares of the firm’s stock in a transaction on Monday, November 18th. The shares were sold at an average price of $71.44, for a total value of $621,027.92. Following the sale, the chief accounting officer now owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 10,771 shares of Roku stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.14, for a total transaction of $766,248.94. Following the sale, the insider now directly owns 3,790 shares in the company, valued at $269,620.60. The trade was a 73.97 % decrease in their position. The disclosure for this sale can be found here. In related news, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on Tuesday, November 19th. The stock was sold at an average price of $75.00, for a total transaction of $75,000.00. Following the sale, the chief financial officer now directly owns 65,555 shares in the company, valued at $4,916,625. The trade was a 1.50 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on ROKU shares. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 price objective on the stock in a report on Tuesday, October 1st. JPMorgan Chase & Co. raised their price target on shares of Roku from $90.00 to $92.00 and gave the company an “overweight” rating in a report on Thursday, October 10th. Jefferies Financial Group cut their price objective on Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a report on Friday, November 1st. Guggenheim raised shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 target price for the company in a report on Friday, August 23rd. Finally, Bank of America lifted their price objective on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Monday, September 30th. Two research analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $84.67.

Roku Stock Performance

The stock has a market cap of $9.98 billion, a P/E ratio of -56.64 and a beta of 2.07. The stock’s fifty day moving average is $74.69 and its 200 day moving average is $64.94.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.29. Roku had a negative net margin of 4.42% and a negative return on equity of 7.22%. The company had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. During the same period in the previous year, the firm earned ($2.33) earnings per share. Roku’s quarterly revenue was up 16.5% compared to the same quarter last year. Equities research analysts predict that Roku, Inc. will post -1.1 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. GS Investments Inc. boosted its holdings in Roku by 33.4% during the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after acquiring an additional 147 shares during the period. PFG Investments LLC lifted its position in shares of Roku by 3.7% during the third quarter. PFG Investments LLC now owns 4,157 shares of the company’s stock worth $310,000 after purchasing an additional 150 shares during the last quarter. True Vision MN LLC boosted its stake in shares of Roku by 3.1% during the third quarter. True Vision MN LLC now owns 5,018 shares of the company’s stock valued at $375,000 after purchasing an additional 152 shares during the period. Mcdonald Partners LLC grew its holdings in shares of Roku by 0.9% in the second quarter. Mcdonald Partners LLC now owns 19,608 shares of the company’s stock worth $1,175,000 after purchasing an additional 175 shares during the last quarter. Finally, Sequoia Financial Advisors LLC increased its stake in Roku by 4.5% in the 3rd quarter. Sequoia Financial Advisors LLC now owns 4,721 shares of the company’s stock worth $352,000 after buying an additional 202 shares during the period. Institutional investors own 86.30% of the company’s stock.

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.