Roku (NASDAQ:ROKU) Shares Gap Down Following Insider Selling

Roku, Inc. (NASDAQ:ROKU)’s stock price gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $73.61, but opened at $67.99. Roku shares last traded at $69.41, with a volume of 2,268,725 shares changing hands.

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

Analysts Set New Price Targets

Several brokerages have recently issued reports on ROKU. Wolfe Research upgraded Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price objective on the stock in a research report on Thursday, September 12th. Moffett Nathanson upgraded shares of Roku from a “sell” rating to a “neutral” rating and set a $80.00 target price on the stock in a report on Tuesday, October 1st. Loop Capital lifted their price target on shares of Roku from $65.00 to $70.00 and gave the stock a “hold” rating in a report on Thursday, October 31st. Guggenheim raised shares of Roku from a “neutral” rating to a “buy” rating and set a $75.00 price objective on the stock in a research note on Friday, August 23rd. Finally, Benchmark reaffirmed a “buy” rating and issued a $105.00 target price on shares of Roku in a research note on Thursday, September 12th. Two analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $84.67.

Roku Trading Down 6.7 %

The firm has a market capitalization of $9.98 billion, a P/E ratio of -56.64 and a beta of 2.07. The company has a 50 day moving average of $74.69 and a 200-day moving average of $64.94.

Roku (NASDAQ:ROKU) last issued its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29. The company had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The company’s revenue for the quarter was up 16.5% compared to the same quarter last year. During the same quarter last year, the company posted ($2.33) EPS. As a group, sell-side analysts forecast that Roku, Inc. will post -1.1 EPS for the current fiscal year.

Institutional Trading of Roku

Large investors have recently bought and sold shares of the business. Holocene Advisors LP bought a new position in shares of Roku in the third quarter valued at approximately $129,015,000. Westfield Capital Management Co. LP raised its holdings in shares of Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares during the period. Point72 Asset Management L.P. grew its holdings in Roku by 352.5% during the third quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock valued at $48,653,000 after purchasing an additional 507,643 shares during the period. JAT Capital Mgmt LP increased its position in Roku by 470.2% in the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after buying an additional 445,777 shares during the last quarter. Finally, FMR LLC raised its stake in shares of Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock valued at $1,087,824,000 after buying an additional 244,793 shares during the period. 86.30% of the stock is currently 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.