Roku (NASDAQ:ROKU) Trading Down 2.5% Following Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s share price fell 2.5% during mid-day trading on Monday following insider selling activity. The stock traded as low as $72.80 and last traded at $72.80. 547,844 shares changed hands during trading, a decline of 88% from the average session volume of 4,584,099 shares. The stock had previously closed at $74.69.

Specifically, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,875,000.00. Following the transaction, the chief executive officer now directly owns 5,020 shares in the company, valued at $376,500. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Charles Collier sold 15,454 shares of Roku stock in a transaction on Thursday, September 12th. The stock was sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the transaction, the insider now owns 200 shares in the company, valued at approximately $15,000. The disclosure for this sale can be found here.

Analyst Ratings Changes

Several brokerages have weighed in on ROKU. Needham & Company LLC reissued a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Friday. Benchmark reaffirmed a “buy” rating and set a $105.00 price target on shares of Roku in a research report on Thursday, September 12th. Macquarie cut their price objective on Roku from $88.00 to $72.00 and set an “outperform” rating on the stock in a research report on Friday, August 2nd. Wolfe Research raised Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 target price on the stock in a research note on Thursday, September 12th. Finally, Rosenblatt Securities dropped their price target on Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a research note on Friday, August 2nd. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and twelve have assigned a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $78.25.

Roku Stock Performance

The company’s 50-day moving average price is $62.15 and its 200 day moving average price is $60.76. The stock has a market cap of $10.76 billion, a PE ratio of -18.64 and a beta of 2.06.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share for the quarter, beating the consensus estimate of ($0.45) by $0.21. The company had revenue of $968.18 million for the quarter, compared to the consensus estimate of $937.78 million. Roku had a negative return on equity of 21.03% and a negative net margin of 13.16%. Roku’s quarterly revenue was up 14.3% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.76) earnings per share. On average, sell-side analysts anticipate that Roku, Inc. will post -1.45 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Swedbank AB purchased a new stake in Roku during the first quarter valued at $1,180,000. Vanguard Personalized Indexing Management LLC increased its stake in Roku by 8.7% during the fourth quarter. Vanguard Personalized Indexing Management LLC now owns 11,381 shares of the company’s stock worth $1,043,000 after acquiring an additional 914 shares during the last quarter. SG Americas Securities LLC lifted its stake in shares of Roku by 238.6% in the 2nd quarter. SG Americas Securities LLC now owns 73,528 shares of the company’s stock valued at $4,407,000 after purchasing an additional 51,815 shares during the last quarter. Norges Bank purchased a new position in shares of Roku in the 4th quarter worth approximately $90,386,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its position in shares of Roku by 23.3% during the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 62,822 shares of the company’s stock valued at $4,094,000 after purchasing an additional 11,851 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

About Roku

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.