Roku (NASDAQ:ROKU) Shares Down 7.6% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 7.6% 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. 9,321,263 shares changed hands during trading, an increase of 64% from the average session volume of 5,697,011 shares. The stock had previously closed at $62.81.

Several other analysts also recently weighed in on ROKU. Citigroup decreased their price target on shares of Roku from $110.00 to $75.00 and set a “neutral” rating for the company in a research note on Wednesday, February 21st. Oppenheimer lowered Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Wells Fargo & Company lowered their target price on shares of Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research note on Friday, April 12th. Benchmark reduced their target price on Roku from $115.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Morgan Stanley lowered their price target on Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a report on Friday, April 5th. Five research analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $83.57.

Insider Buying and Selling at Roku

In other news, SVP Stephen H. Kay sold 4,310 shares of the firm’s stock in a transaction dated Monday, March 4th. The stock was sold at an average price of $63.20, for a total transaction of $272,392.00. Following the sale, the senior vice president now directly owns 81,459 shares in the company, valued at approximately $5,148,208.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 completion of the sale, the insider now owns 4,292 shares of the company’s stock, valued at $279,237.52. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Stephen H. Kay sold 4,310 shares of the company’s stock in a transaction dated 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 approximately $5,148,208.80. The disclosure for this sale can be found here. Over the last quarter, insiders sold 54,545 shares of company stock valued at $4,364,035. Corporate insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

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

Roku Price Performance

The stock has a market capitalization of $8.27 billion, a PE ratio of -11.56 and a beta of 1.66. The company’s 50 day moving average price is $63.11 and its two-hundred day moving average price is $78.59.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, April 25th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $881.50 million for the quarter, compared to analysts’ expectations of $843.54 million. During the same period in the previous year, the firm posted ($1.38) EPS. The business’s revenue for the quarter was up 19.0% compared to the same quarter last year. Analysts forecast that Roku, Inc. will post -2.12 earnings per share for the current 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.