Roku (NASDAQ:ROKU) Shares Down 0.2% - Here's Why

On Monday, shares of Roku, Inc. (NASDAQ:ROKU) declined by 0.2% during trading. The stock reached a low of $83.84 and was last seen at $83.97, reflecting a significant drop from its previous close of $84.12. During the day, around 1,098,094 shares were exchanged, marking a 75% decrease in volume compared to the average daily trading volume of 4,430,691 shares.

Wall Street Analyst Opinions

Recently, several research firms have provided insights on Roku's stock. Notably, Moffett Nathanson upgraded Roku shares from a "sell" to a "neutral" rating, setting a price target of $80.00 as of October 1st. On September 30th, Bank of America adjusted its price target from $75.00 to $90.00 while issuing a "buy" rating for the stock. Macquarie reiterated a positive stance with an "outperform" rating and a $90.00 target on October 31st. Furthermore, JPMorgan Chase & Co. raised its price target from $90.00 to $92.00, assigning the stock an "overweight" rating on October 10th. Piper Sandler also increased its target from $60.00 to $75.00 with a "neutral" rating.

Out of various ratings, two analysts have assigned a "sell" rating, nine have given a "hold" rating, twelve rated it as a "buy," and one assigned a "strong buy." The consensus rating among analysts is a "Moderate Buy" with an average target price of $83.81, according to MarketBeat.

Roku's Stock Performance Analysis

Roku's stock has a fifty-day moving average price of $74.22, while its 200-day moving average sits at $66.11. The company boasts a market capitalization of $12.13 billion and carries a price-to-earnings (P/E) ratio of -69.97, indicating current losses relative to earnings. The stock's beta is 2.06, suggesting higher volatility compared to the market.

In its latest earnings report, announced on October 30th, Roku reported an earnings per share (EPS) of ($0.06), exceeding analyst expectations of ($0.35) by $0.29. The company's revenue reached $1.06 billion for the quarter, topping the anticipated $1.02 billion. However, Roku experienced a net margin of -4.42% and a return on equity of -7.22%. The revenue grew by 16.5% compared to the same quarter last year. Analysts predict that Roku will report -1.1 EPS for the current fiscal year.

Insider Trading Activities

Recent insider trading has caught attention as Charles Collier, an insider, sold 10,771 shares on November 18th for an average price of $71.14, totaling $766,248.94. Following the sale, Collier retained 3,790 shares valued at approximately $269,620.60, marking a 73.97% decrease in ownership. The transaction details were filed with the SEC. Similarly, Chief Accounting Officer Matthew C. Banks sold 8,693 shares at an average price of $71.44 for a total of $621,027.92, resulting in a 54.48% drop in ownership to 7,264 shares valued at $518,940.16. In total, insiders have sold 88,550 shares over the last quarter, aggregating $6,621,873. About 13.98% of Roku's stock is owned by insiders.

Institutional Trading Trends

Institutional investors have shown varying activities in Roku's stock. Franklin Resources Inc. boosted its holdings by 14.5% during the third quarter, amassing 82,170 shares valued at $6,275,000 after acquiring 10,416 additional shares. Sender Co & Partners Inc. acquired a new stake in Roku valued at $827,000 during the same quarter. M&T Bank Corp increased its holdings by 19.1%, now owning 7,024 shares valued at $525,000 after adding 1,126 shares. Additionally, Nomura Asset Management Co. Ltd. elevated its stake by 14.1%, now controlling 36,420 shares worth $2,719,000 after purchasing 4,500 shares. In total, institutional investors own approximately 86.30% of Roku's stock.

About Roku

Roku, Inc. operates a TV streaming platform both in the United States and internationally through its subsidiaries. It functions in two primary segments: Platform and Devices. Roku's streaming platform allows users to discover and access a variety of content, including TV shows, movies, news, and sports. The Platform segment encompasses digital advertising services, programmatic video ads, and distribution of streaming services, among other offerings.

Roku, Stocks, Analysis