Roku (NASDAQ:ROKU) Shares Gap Down on Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) gapped down prior to trading on Friday after Benchmark lowered their price target on the stock from $115.00 to $105.00. The stock had previously closed at $62.81, but opened at $60.73. Benchmark currently has a buy rating on the stock. Roku shares last traded at $57.06, with a volume of 5,335,044 shares trading hands.

A number of other analysts also recently commented on ROKU. Citigroup lowered their target price on Roku from $110.00 to $75.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 21st. Oppenheimer downgraded Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Wedbush decreased their target price on Roku from $120.00 to $80.00 and set an “outperform” rating on the stock in a research report on Friday, April 19th. Wells Fargo & Company cut their price objective on Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research report on Friday, April 12th. Finally, Stephens reissued an “overweight” rating and set a $105.00 price objective on shares of Roku in a research report on Friday, February 16th. Five research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $83.81.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 4,182 shares of the business’s stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $65.00, for a total value of $271,830.00. Following the transaction, the insider now owns 8,474 shares of the company’s stock, valued at $550,810. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In related news, SVP Stephen H. Kay sold 4,310 shares of the company’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $63.20, for a total transaction of $272,392.00. Following the transaction, the senior vice president now owns 81,459 shares of the company’s stock, valued at $5,148,208.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Charles Collier sold 4,182 shares of the company’s stock in a transaction on Friday, March 8th. The stock was sold at an average price of $65.00, for a total value of $271,830.00. Following the transaction, the insider now directly owns 8,474 shares in the company, valued at approximately $550,810. The disclosure for this sale can be found here. Over the last quarter, insiders sold 54,545 shares of company stock worth $4,364,035. 13.63% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. GAMMA Investing LLC purchased a new stake in Roku during the fourth quarter worth $27,000. Creative Financial Designs Inc. ADV acquired a new stake in Roku during the fourth quarter worth about $29,000. Federated Hermes Inc. acquired a new stake in Roku during the third quarter worth about $37,000. Quarry LP increased its stake in Roku by 160.2% during the fourth quarter. Quarry LP now owns 432 shares of the company’s stock worth $40,000 after acquiring an additional 266 shares during the last quarter. Finally, Headinvest LLC acquired a new stake in Roku during the third quarter worth about $42,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Down 9.3 %

The company has a market capitalization of $8.18 billion, a price-to-earnings ratio of -11.35 and a beta of 1.66. The company has a 50 day simple moving average of $63.11 and a 200 day simple moving average of $78.59.

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

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.