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

Roku, Inc. (NASDAQ:ROKU)’s share price dropped 2.5% on Monday following insider selling activity. The company traded as low as $72.80 and last traded at $72.80. Approximately 547,844 shares changed hands during mid-day trading, a decline of 88% from the average daily 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 company’s stock in a transaction dated 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 completion of the transaction, the chief executive officer now owns 5,020 shares in the company, valued at $376,500. The transaction was disclosed in a legal filing 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 dated Thursday, September 12th. The shares were sold at an average price of $75.00, for a total transaction of $1,159,050.00. Following the completion of the sale, the insider now owns 200 shares in the company, valued at $15,000. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

Several brokerages have commented on ROKU. Guggenheim upgraded shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price target on the stock in a research note on Friday, August 23rd. Benchmark restated a “buy” rating and issued a $105.00 target price on shares of Roku in a research report on Thursday, September 12th. Rosenblatt Securities reduced their price target on Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a research report on Friday, August 2nd. Bank of America decreased their price target on Roku from $85.00 to $75.00 and set a “buy” rating for the company in a research note on Friday, August 2nd. Finally, Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective on the stock in a research note on Thursday, September 12th. Three equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and twelve have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $78.25.

Roku Price Performance

The firm has a market capitalization of $10.76 billion, a PE ratio of -18.71 and a beta of 2.06. The firm has a fifty day moving average price of $62.38 and a 200 day moving average price of $60.84.

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

Institutional Trading of Roku

Hedge funds have recently modified their holdings of the business. Robeco Institutional Asset Management B.V. raised its position in Roku by 37.8% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 20,565 shares of the company’s stock valued at $1,885,000 after buying an additional 5,641 shares during the period. ING Groep NV purchased a new stake in shares of Roku in the fourth quarter worth approximately $1,842,000. Norges Bank acquired a new stake in shares of Roku during the fourth quarter worth approximately $90,386,000. BI Asset Management Fondsmaeglerselskab A S boosted its holdings in shares of Roku by 29.5% during the fourth quarter. BI Asset Management Fondsmaeglerselskab A S now owns 24,928 shares of the company’s stock worth $2,285,000 after purchasing an additional 5,686 shares during the period. Finally, Thoroughbred Financial Services LLC grew its position in Roku by 171.2% during the fourth quarter. Thoroughbred Financial Services LLC now owns 9,505 shares of the company’s stock valued at $871,000 after purchasing an additional 6,000 shares in the last quarter. Hedge funds and other 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.