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

Roku, Inc. (NASDAQ:ROKU)’s share price was down 6.7% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $67.12 and last traded at $68.69. Approximately 2,745,573 shares were traded during trading, a decline of 38% from the average daily 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 company’s stock in a transaction dated Monday, November 18th. The shares were 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. This represents a 54.48 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charles Collier sold 10,771 shares of the company’s 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 transaction, the insider now owns 3,790 shares in the company, 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 the company’s stock in a transaction dated Tuesday, November 19th. The shares were sold at an average price of $75.00, for a total transaction of $75,000.00. Following the transaction, the chief financial officer now owns 65,555 shares in the company, valued at approximately $4,916,625. This represents a 1.50 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

ROKU has been the topic of a number of analyst reports. Wedbush upped their target price on shares of Roku from $75.00 to $85.00 and gave the stock an “outperform” rating in a report on Friday, October 25th. Macquarie reaffirmed an “outperform” rating and issued a $90.00 price objective on shares of Roku in a research report on Thursday, October 31st. Baird R W raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday. Jefferies Financial Group reduced their target price on shares of Roku from $60.00 to $55.00 and set an “underperform” rating for the company in a research report on Friday, November 1st. Finally, Robert W. Baird raised shares of Roku from a “neutral” rating to an “outperform” rating and increased their target price for the company from $70.00 to $90.00 in a research report on Monday. Two analysts have rated the stock with a sell rating, eight have given a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $84.67.

Roku Stock Performance

The firm has a market capitalization of $9.98 billion, a PE ratio of -56.64 and a beta of 2.07. The company’s 50 day simple moving average is $74.69 and its 200-day simple moving average is $64.94.

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

Institutional Trading of Roku

Several institutional investors and hedge funds have recently made changes to their positions in ROKU. Holocene Advisors LP purchased a new stake in shares of Roku during the 3rd quarter valued at $129,015,000. Westfield Capital Management Co. LP raised its position in shares of Roku by 126.1% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock valued at $114,646,000 after buying an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. raised its position in Roku by 352.5% in the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares during the period. JAT Capital Mgmt LP raised its position in Roku by 470.2% in the 3rd quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock worth $40,359,000 after purchasing an additional 445,777 shares during the period. Finally, FMR LLC raised its position in Roku by 1.7% in the 3rd quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after purchasing an additional 244,793 shares during the period. 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.