Roku (NASDAQ:ROKU) Lowered to Hold Rating by Evercore

Evercore cut shares of Roku (NASDAQ:ROKU) from a strong-buy rating to a hold rating in a report published on Monday,Zacks.com reports.

Other analysts also recently issued research reports about the company. Guggenheim upped their price target on Roku from $140.00 to $145.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. William Blair downgraded Roku from an “outperform” rating to a “market perform” rating in a research note on Monday. Wells Fargo & Company increased their target price on Roku from $137.00 to $167.00 and gave the company an “overweight” rating in a research note on Friday, May 1st. Weiss Ratings reiterated a “hold (c-)” rating on shares of Roku in a research note on Friday, May 15th. Finally, Wolfe Research downgraded Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday. Eleven investment analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Roku currently has a consensus rating of “Hold” and a consensus price target of $153.71.

Roku Stock Down 2.1%

Roku stock opened at $137.95 on Monday. The company has a market capitalization of $20.34 billion, a P/E ratio of 103.72 and a beta of 2.06. The stock’s 50 day moving average is $120.40 and its 200 day moving average is $106.95. Roku has a twelve month low of $77.64 and a twelve month high of $148.88.

Roku (NASDAQ:ROKU) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm’s quarterly revenue was up 22.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.19) EPS. As a group, equities analysts expect that Roku will post 2.41 EPS for the current year.

Insider Buying and Selling

In related news, insider Charles Collier sold 205,821 shares of the firm’s stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total value of $21,611,205.00. Following the transaction, the insider directly owned 11,131 shares of the company’s stock, valued at approximately $1,168,755. This trade represents a 94.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $144.00, for a total value of $1,467,936.00. Following the completion of the transaction, the insider directly owned 19,185 shares in the company, valued at approximately $2,762,640. This represents a 34.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 713,194 shares of company stock valued at $81,763,589. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently bought and sold shares of the stock. Raleigh Capital Management Inc. raised its holdings in Roku by 6.5% in the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company’s stock worth $144,000 after purchasing an additional 93 shares during the period. Apollon Wealth Management LLC raised its holdings in Roku by 1.5% in the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company’s stock worth $700,000 after purchasing an additional 96 shares during the period. Thoroughbred Financial Services LLC raised its holdings in Roku by 1.0% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock worth $995,000 after purchasing an additional 100 shares during the period. Quantum Portfolio Management LLC raised its holdings in Roku by 2.6% in the 1st quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company’s stock worth $391,000 after purchasing an additional 105 shares during the period. Finally, HB Wealth Management LLC raised its holdings in Roku by 3.7% in the 1st quarter. HB Wealth Management LLC now owns 3,447 shares of the company’s stock worth $326,000 after purchasing an additional 122 shares during the period. 86.30% of the stock is owned by institutional investors.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox agreed to buy Roku (ROKU) for about $22 billion, valuing shares at $160 each and giving Roku holders cash plus Fox stock; the deal has driven takeover speculation and a higher valuation for the company. Fox to buy Roku in $22 billion deal
• Positive Sentiment: Several Wall Street firms raised or reiterated bullish views on Roku (ROKU), including higher price targets around $160 to $175, supporting the stock after the acquisition news. Analyst updates on Roku
• Neutral Sentiment: Law firms have begun investigating whether the proposed Fox deal gives Roku (ROKU) shareholders a fair price, which adds some uncertainty but does not change the deal terms yet. Fairness investigation into Roku sale
• Negative Sentiment: Roku CFO Dan Jedda sold 7,000 shares under a pre-arranged trading plan, which may weigh on sentiment even though the sale was disclosed as routine. Roku insider sale

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.