Roku (NASDAQ:ROKU) Stock Price Down 7.6% Following Analyst Downgrade

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

Several other equities research analysts have also issued reports on ROKU. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Roku in a research note on Friday. Citigroup dropped their price objective 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. Pivotal Research reduced their target price on shares of Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a research note on Friday, February 16th. Susquehanna raised their target price on shares of Roku from $100.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, February 16th. Finally, Stephens reiterated an “overweight” rating and set a $105.00 price target on shares of Roku in a report on Friday, February 16th. 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 stock. Based on data from MarketBeat, Roku presently has an average rating of “Hold” and a consensus target price of $83.90.

Insiders Place Their Bets

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction dated 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 transaction, 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 SEC, which can be accessed through this hyperlink. In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the completion of the transaction, the chief executive officer now owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charles Collier sold 4,182 shares of the business’s stock in a transaction on Friday, March 8th. The stock was sold at an average price of $65.00, for a total value of $271,830.00. Following the completion of the transaction, the insider now directly owns 8,474 shares of the company’s stock, valued at $550,810. The disclosure for this sale can be found here. In the last ninety days, insiders sold 54,545 shares of company stock worth $4,364,035. 13.63% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC purchased a new stake in Roku during the fourth quarter valued at approximately $27,000. Creative Financial Designs Inc. ADV acquired a new stake in shares of Roku in the 4th quarter worth $29,000. Federated Hermes Inc. purchased a new position in Roku during the 3rd quarter worth $37,000. Quarry LP increased its position in Roku by 160.2% during the 4th quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after buying an additional 266 shares in the last quarter. Finally, Headinvest LLC purchased a new stake in Roku in the third quarter valued at about $42,000. 86.30% of the stock is currently owned by institutional investors.

Roku Price Performance

The firm has a market cap of $8.09 billion, a price-to-earnings ratio of -11.23 and a beta of 1.66. The firm has a fifty day simple moving average of $62.80 and a two-hundred day simple moving average of $78.48.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 25th. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $843.54 million. During the same period last year, the business earned ($1.38) EPS. Roku’s revenue for the quarter was up 19.0% on a year-over-year basis. Equities analysts anticipate that Roku, Inc. will post -2.12 earnings per share 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.