Roku (NASDAQ:ROKU) Stock Price Down 0.1% - What’s Next?

Roku, Inc. (NASDAQ:ROKU) saw its share price decrease by 0.1% during mid-day trading on Thursday. The stock reached a low of $77.55 and was last seen trading at $78.39. In total, 631,601 shares were exchanged during the session, representing a sharp decline of 86% from the average trading volume of 4,365,909 shares. The stock had closed the previous day at $78.49.

Analysts Set New Price Targets

Several brokerages have released their reports on Roku. Macquarie reiterated an "outperform" rating with a new price target of $90.00 in a research note published on October 31. Rosenblatt Securities increased its price target on Roku from $61.00 to $86.00 while maintaining a "neutral" rating in their Thursday report. UBS Group initiated coverage on Roku on November 22, assigning a "neutral" rating and setting a target price of $73.00. Wells Fargo raised its target from $72.00 to $74.00, also rating it as "equal weight." Guggenheim upgraded its rating from "neutral" to "buy" and set a target price of $75.00 back on August 23. Overall, two analysts have given the stock a sell rating, nine have labeled it as a hold, twelve assigned buy ratings, and one provided a strong buy rating. Current consensus data from MarketBeat indicates a "Moderate Buy" rating with an average target price of $83.81.

Roku Trading Down 0.3 %

As for technical indicators, Roku's fifty-day simple moving average stands at $75.26, while its 200-day moving average is $67.48. The company has a market capitalization of $11.36 billion, a price-to-earnings ratio of -65.19, and a beta of 2.06.

Roku recently reported its quarterly earnings on October 30. The company posted earnings per share of ($0.06), surpassing the consensus estimate of ($0.35) by $0.29. Revenue during this period reached $1.06 billion, exceeding analyst expectations of $1.02 billion. Roku demonstrated a negative return on equity of 7.22% and recorded a negative net margin of 4.42%. Revenue for the quarter reflected a 16.5% increase compared to the same quarter the previous year. During that time a year ago, the company reported earnings of ($2.33) per share. Analysts predict that Roku, Inc. will report an EPS of -1.1 for the current fiscal year.

Insider Transactions at Roku

Regarding insider activities, CFO Dan Jedda sold 1,000 shares of Roku's stock on December 16 at an average price of $82.73, which totaled $82,730.00. Following this transaction, he holds 64,555 shares valued at approximately $5.34 million. This sale represented a 1.53% decrease in his holdings. Additionally, CEO Anthony J. Wood sold 25,000 shares on October 10 at an average price of $77.20, amounting to $1,930,000.00. After this transaction, he directly owns 5,020 shares valued at $387,544, signifying an 83.28% drop in his stake. In total, insiders have sold 73,096 shares valued at $5,661,223 in the past three months. Company insiders currently own 13.98% of Roku’s stock.

Hedge Funds Weigh In On Roku

In recent months, several institutional investors and hedge funds have adjusted their Roku holdings. Holocene Advisors LP acquired a new stake worth approximately $129 million in the third quarter. Westfield Capital Management Co. LP raised its position in Roku by 126.1%, owning 1,535,576 shares valued at $114.65 million after acquiring an additional 856,401 shares. Point72 Asset Management L.P. significantly increased its stake by 352.5%, now holding 651,658 shares valued at $48.65 million after acquiring 507,643 additional shares. JAT Capital Management LP enhanced its position in Roku by 470.2%, now owning 540,577 shares valued at $40.36 million. FMR LLC also grew its holdings by 1.7% to own 14,570,372 shares valued at $1.09 billion after adding 244,793 shares. Approximately 86.30% of Roku’s stock is owned by institutional investors and hedge funds.

Roku Company Profile

Roku, Inc., along with its subsidiaries, operates a TV streaming platform both in the United States and internationally. The company functions in two segments: Platform and Devices. Its platform allows users to search for and access TV shows, movies, sports, and more. The Platform segment provides digital advertising that includes direct and programmatic video advertising and media spending related to entertainment, as well as distribution services for streaming services.

Is Roku a Good Investment?

Before making any investment decisions regarding Roku, it's important to consider current market trends. While the stock currently holds a "Moderate Buy" rating among analysts, some suggest there are other stocks that may present better investment opportunities.

Roku, Stock, Trading