Roku (NASDAQ:ROKU) Trading Down 0.8% Following Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) fell 0.8% during trading on Monday after Wedbush lowered their price target on the stock from $120.00 to $80.00. Wedbush currently has an outperform rating on the stock. Roku traded as low as $56.16 and last traded at $56.43. 1,031,922 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 5,613,229 shares. The stock had previously closed at $56.90.

A number of other analysts have also recently commented on ROKU. Citigroup lowered their target price 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. Stephens reiterated an “overweight” rating and issued a $105.00 target price on shares of Roku in a research note on Friday, February 16th. Needham & Company LLC reissued a “buy” rating and set a $100.00 price target on shares of Roku in a research report on Wednesday, February 21st. Susquehanna raised their price target on shares of Roku from $100.00 to $110.00 and gave the stock a “positive” rating in a research report on Friday, February 16th. Finally, Pivotal Research reduced their price target on shares of Roku from $85.00 to $75.00 and set a “hold” rating for the company in a research report on Friday, February 16th. Five equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $84.76.

Insiders Place Their Bets

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Roku by 3.3% during the 4th quarter. Vanguard Group Inc. now owns 11,853,947 shares of the company’s stock valued at $1,086,533,000 after acquiring an additional 380,409 shares during the last quarter. FMR LLC boosted its position in shares of Roku by 85.9% during the 3rd quarter. FMR LLC now owns 9,441,349 shares of the company’s stock valued at $666,465,000 after acquiring an additional 4,363,754 shares during the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its position in shares of Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock valued at $478,939,000 after acquiring an additional 1,457,925 shares during the last quarter. Wellington Management Group LLP boosted its position in shares of Roku by 34.6% during the 3rd quarter. Wellington Management Group LLP now owns 2,543,081 shares of the company’s stock valued at $179,516,000 after acquiring an additional 653,940 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of Roku during the 4th quarter valued at about $90,386,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Performance

The firm’s 50-day moving average price is $65.69 and its two-hundred day moving average price is $78.97. The stock has a market cap of $8.41 billion, a price-to-earnings ratio of -11.24 and a beta of 1.66.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 15th. The company reported ($0.55) earnings per share for the quarter, topping the consensus estimate of ($0.65) by $0.10. The company had revenue of $984.40 million during the quarter, compared to analyst estimates of $967.72 million. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. Roku’s revenue was up 13.5% compared to the same quarter last year. During the same quarter last year, the firm posted ($1.70) earnings per share. As a group, sell-side 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.