Roku (NASDAQ:ROKU) Stock Price Declines 5% - An Overview

Roku, Inc. (NASDAQ:ROKU) saw a significant drop in its share price, falling by 5% on Friday. The stock reached a low of $74.77 before stabilizing at a last traded price of $75.53. During mid-day trading, about 669,683 shares exchanged hands, which is a notable decline of 85% from the average daily volume of 4,322,592 shares. This decline follows a previous closing price of $79.48.

Analysts Project Future Growth

• Potential Collaboration Between Roku and The Trade Desk to Form a Major Adtech Leader?

Recent reports from various research firms present mixed outlooks for Roku's stock. Citigroup raised its target price from $60.00 to $77.00, giving the stock a "neutral" rating on September 25th. Meanwhile, Robert W. Baird increased Roku's rating from "neutral" to "outperform," adjusting its price target upward from $70.00 to $90.00 in a report released on November 18th. Benchmark also maintained a "buy" rating with a price target set at $105.00, as stated in a report dated September 12th. Furthermore, Bank of America lifted their price target for Roku from $75.00 to $90.00 along with a "buy" rating on September 30th. Two analysts are recommending sell positions on the stock, while nine suggest holding, twelve advocate buying, and one rates it as a strong buy. Overall, MarketBeat.com data indicates a prevailing average rating of "Moderate Buy" along with a general target price of $83.81.

Roku Experiences a 5.7% Decline

• Why 2025 Could Signal a Turning Point for Roku's Recovery

The firm stands with a market capitalization of $10.89 billion, a price-to-earnings ratio at -62.48, and a beta of 2.06. Roku's fifty-day and two-hundred-day moving average prices are recorded at $75.48 and $68.31, respectively. On October 30th, the company reported its latest earnings, revealing an earnings per share (EPS) of ($0.06), exceeding analysts' expectations of ($0.35) by $0.29. Revenue for the quarter reached $1.06 billion, surpassing consensus estimates of $1.02 billion. Compared to the previous year, Roku's revenue grew by 16.5%, and analysts predict an EPS of -1.1 for the ongoing fiscal year.

Insider Transactions

• The Trade Desk: When Selling News Becomes a Buying Opportunity

In related news, insider Charles Collier sold 10,771 shares on November 18th at an average price of $71.14, amounting to a total of approximately $766,248.94. Following this transaction, Collier now holds 3,790 shares valued at about $269,620.60, reflecting a significant 73.97% reduction in his shareholding. Additionally, CAO Matthew C. Banks offloaded 8,693 shares on the same day, receiving an average price of $71.44 for a total of $621,027.92. Post-transaction, he retains 7,264 shares valued at roughly $518,940.16, a 54.48% decrease in his ownership. In total, insiders sold 73,096 shares worth $5,661,223 over the past 90 days, with company insiders holding 13.98% of the stock.

Institutional Investors' Actions

Multiple institutional investors have recently adjusted their stakes in Roku. Raelipskie Partnership took a new position in Roku valued at $32,000 during the third quarter. Future Financial Wealth Management acquired a new stake worth $43,000 in the same period. GS Investments Inc. boosted its holdings by 33.4% during the third quarter, now owning 587 shares worth $44,000 after adding 147 shares. EverSource Wealth Advisors LLC raised its position by a notable 123.4%, acquiring a total of 679 shares valued at $40,000 after an additional purchase of 375 shares. Lastly, Cedar Wealth Management also initiated a new position worth about $48,000. Overall, hedge funds and institutional investors control approximately 86.30% of Roku's stock.

About Roku

Roku, Inc. provides a TV streaming platform in the United States and beyond. It operates through two main segments: Platform and Devices. The streaming platform facilitates access to movies, TV shows, news, sports, and other content. The Platform segment includes digital advertising services such as direct and programmatic video ads, media promotion, and streaming service distributions, which encompass subscription shares and sales of premium subscriptions.

Should You Consider Investing in Roku Now?

Before deciding on investing in Roku, it is essential to evaluate expert opinions. Although analysts currently hold a "Moderate Buy" rating for the stock, some top analysts recommend alternative stocks that they believe could be a more advantageous investment at this time.

Roku, Stocks, Investors