Loop Capital Downgrades Roku (NASDAQ:ROKU) to Hold

Roku (NASDAQ:ROKU) was downgraded by analysts at Loop Capital from a “buy” rating to a “hold” rating in a report released on Thursday, Marketbeat.com reports. They presently have a $85.00 price target on the stock. Loop Capital’s price objective suggests a potential upside of 1.83% from the company’s previous close.

A number of other brokerages have also issued reports on ROKU. Susquehanna increased their price target on Roku from $75.00 to $95.00 and gave the company a “positive” rating in a research note on Friday, July 28th. Piper Sandler lifted their target price on Roku from $65.00 to $70.00 and gave the stock a “neutral” rating in a report on Friday, July 14th. DA Davidson upped their price target on shares of Roku from $81.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, August 17th. Truist Financial reaffirmed a “hold” rating and issued a $80.00 price objective on shares of Roku in a research note on Wednesday. Finally, Evercore ISI increased their target price on shares of Roku from $70.00 to $75.00 and gave the company an “in-line” rating in a research note on Friday, July 28th. Three research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and ten have given a buy rating to the company. According to MarketBeat, Roku has an average rating of “Hold” and an average price target of $82.17.

Roku Stock Performance

ROKU stock opened at $83.47 on Thursday. The stock’s fifty day moving average is $78.48 and its two-hundred day moving average is $67.48. The stock has a market capitalization of $11.81 billion, a price-to-earnings ratio of -17.68 and a beta of 1.76. Roku has a 1 year low of $38.26 and a 1 year high of $98.44.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, July 27th. The company reported ($0.76) earnings per share for the quarter, beating analysts’ consensus estimates of ($1.28) by $0.52. Roku had a negative return on equity of 25.15% and a negative net margin of 20.54%. The company had revenue of $847.20 million for the quarter, compared to analysts’ expectations of $774.65 million. During the same quarter in the previous year, the company posted ($0.82) earnings per share. The business’s revenue for the quarter was up 10.9% compared to the same quarter last year. As a group, analysts predict that Roku will post -4.49 EPS for the current fiscal year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 5,297 shares of Roku stock in a transaction that occurred on Tuesday, September 5th. The stock was sold at an average price of $82.69, for a total value of $438,008.93. Following the transaction, the chief financial officer now directly owns 12,429 shares of the company’s stock, valued at approximately $1,027,754.01. The sale was disclosed in a document filed with the SEC, which is accessible through this link. In related news, SVP Gilbert Fuchsberg sold 2,394 shares of Roku stock in a transaction dated Tuesday, September 5th. The stock was sold at an average price of $82.69, for a total transaction of $197,959.86. Following the sale, the senior vice president now directly owns 35,266 shares of the company’s stock, valued at $2,916,145.54. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Dan Jedda sold 5,297 shares of the business’s stock in a transaction dated Tuesday, September 5th. The shares were sold at an average price of $82.69, for a total value of $438,008.93. Following the transaction, the chief financial officer now owns 12,429 shares in the company, valued at $1,027,754.01. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 17,430 shares of company stock valued at $1,487,351. 13.63% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds have recently made changes to their positions in ROKU. Two Sigma Advisers LP lifted its position in shares of Roku by 172.2% during the 4th quarter. Two Sigma Advisers LP now owns 632,600 shares of the company’s stock worth $25,747,000 after buying an additional 400,200 shares during the period. Mitsubishi UFJ Trust & Banking Corp boosted its stake in shares of Roku by 1.9% in the 4th quarter. Mitsubishi UFJ Trust & Banking Corp now owns 68,166 shares of the company’s stock valued at $2,774,000 after purchasing an additional 1,267 shares in the last quarter. Harbor Capital Advisors Inc. grew its holdings in shares of Roku by 85.2% in the 1st quarter. Harbor Capital Advisors Inc. now owns 2,539 shares of the company’s stock worth $167,000 after purchasing an additional 1,168 shares during the last quarter. Raymond James & Associates increased its position in shares of Roku by 3.8% during the 1st quarter. Raymond James & Associates now owns 34,366 shares of the company’s stock worth $2,262,000 after purchasing an additional 1,253 shares in the last quarter. Finally, Maryland State Retirement & Pension System lifted its holdings in Roku by 8.5% during the 1st quarter. Maryland State Retirement & Pension System now owns 9,629 shares of the company’s stock valued at $634,000 after purchasing an additional 755 shares during the last quarter. Institutional investors and hedge funds own 69.21% of the company’s stock.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform. 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 company also provides digital advertising and related services, including the demand-side ad platform and content distribution services, such as subscription and transaction revenue shares; media and entertainment promotional spending services; premium subscriptions services; video and display advertising services; and sells branded channel buttons on remote controls of streaming device.