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

Roku, Inc. (NASDAQ:ROKU)’s stock price gapped down before the market opened on Friday after Wedbush lowered their price target on the stock from $80.00 to $75.00. The stock had previously closed at $62.81, but opened at $60.73. Wedbush currently has an outperform rating on the stock. Roku shares last traded at $57.06, with a volume of 5,335,044 shares traded.

A number of other research firms have also weighed in on ROKU. Oppenheimer lowered shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Friday, February 16th. Susquehanna lifted their price target on Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, February 16th. Wells Fargo & Company decreased their price objective on Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a report on Friday, April 12th. Needham & Company LLC restated a “buy” rating and issued a $100.00 target price on shares of Roku in a report on Friday. Finally, Rosenblatt Securities reaffirmed a “neutral” rating and set a $89.00 target price on shares of Roku in a research report on Friday. Five analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the company’s stock. Based on data from MarketBeat, Roku currently has an average rating of “Hold” and a consensus target price of $83.90.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the completion of the transaction, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated Monday, February 12th. The stock was sold at an average price of $98.64, for a total value of $2,466,000.00. Following the sale, the chief executive officer now directly owns 141,221 shares in the company, valued at approximately $13,930,039.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Stephen H. Kay sold 4,310 shares of the company’s stock in a transaction dated Monday, March 4th. The shares were 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 $5,148,208.80. The disclosure for this sale can be found here. Insiders have sold a total of 54,545 shares of company stock worth $4,364,035 over the last three months. 13.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

Roku Stock Down 10.3 %

The firm has a market capitalization of $8.09 billion, a PE ratio of -11.23 and a beta of 1.66. The company has a 50-day moving average of $62.80 and a 200 day moving average of $78.48.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data 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 net margin of 20.36% and a negative return on equity of 29.21%. The company had revenue of $881.50 million for the quarter, compared to analysts’ expectations of $843.54 million. During the same period in the prior year, the business earned ($1.38) earnings per share. Roku’s revenue for the quarter was up 19.0% compared to the same quarter last year. As a group, equities analysts anticipate 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.