Roku (NASDAQ:ROKU) Trading Down 7.6% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU)’s share price was down 7.6% during trading on Friday after Wedbush lowered their price target on the stock from $80.00 to $75.00. Wedbush currently has an outperform rating on the stock. Roku traded as low as $56.10 and last traded at $58.03. Approximately 9,321,263 shares were traded during mid-day trading, an increase of 64% from the average daily volume of 5,697,011 shares. The stock had previously closed at $62.81.

Several other research analysts have also weighed in on the stock. Morgan Stanley lowered their target price on shares of Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research note on Friday, April 5th. Wells Fargo & Company lowered their price objective on shares of Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research report on Friday, April 12th. Oppenheimer lowered Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Pivotal Research lowered their price target on Roku from $85.00 to $75.00 and set a “hold” rating for the company in a research report on Friday, February 16th. Finally, Benchmark dropped their price objective on Roku from $115.00 to $105.00 and set a “buy” rating for the company in a research note on Friday. Five equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $83.57.

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $98.64, for a total value of $2,466,000.00. Following the completion of the sale, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at approximately $13,930,039.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, insider Charles Collier sold 12,277 shares of the business’s stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $65.06, for a total transaction of $798,741.62. Following the transaction, the insider now directly owns 4,292 shares in the company, valued at $279,237.52. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the transaction, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 54,545 shares of company stock valued at $4,364,035. 13.63% of the stock is currently owned by insiders.

Institutional Trading of Roku

Several hedge funds have recently modified their holdings of ROKU. GAMMA Investing LLC acquired a new stake in shares of Roku in the fourth quarter valued at about $27,000. Creative Financial Designs Inc. ADV acquired a new stake in shares of Roku in the 4th quarter worth approximately $29,000. Quarry LP increased its stake in Roku by 160.2% in the 4th quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after purchasing an additional 266 shares in the last quarter. Federated Hermes Inc. acquired a new stake in Roku in the third quarter valued at $37,000. Finally, Headinvest LLC acquired a new position in shares of Roku during the 3rd quarter worth $42,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Trading Down 8.3 %

The firm has a 50 day moving average price of $63.11 and a 200-day moving average price of $78.59. The firm has a market cap of $8.27 billion, a price-to-earnings ratio of -11.56 and a beta of 1.66.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, April 25th. The company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.64) by $0.29. The business had revenue of $881.50 million for the quarter, compared to analyst estimates of $843.54 million. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The business’s revenue for the quarter was up 19.0% compared to the same quarter last year. During the same quarter last year, the company earned ($1.38) earnings per share. As a group, equities analysts expect that Roku, Inc. will post -2.12 earnings per share for the current fiscal year.

About Roku

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.