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

Roku, Inc. (NASDAQ:ROKU)’s share price gapped down before the market opened on Friday after Loop Capital lowered their price target on the stock from $90.00 to $80.00. The stock had previously closed at $67.27, but opened at $59.86. Loop Capital currently has a hold rating on the stock. Roku shares last traded at $60.57, with a volume of 4,079,232 shares changing hands.

ROKU has been the topic of several other research reports. JPMorgan Chase & Co. decreased their price target on shares of Roku from $115.00 to $75.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 22nd. Wells Fargo & Company reduced their price objective on Roku from $129.00 to $93.00 and set an “overweight” rating on the stock in a research note on Monday, April 28th. Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and raised their target price for the company from $55.00 to $100.00 in a report on Thursday, February 20th. UBS Group reduced their price target on shares of Roku from $90.00 to $72.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 15th. Finally, FBN Securities started coverage on shares of Roku in a research report on Friday, March 28th. They set an “outperform” rating and a $93.00 price objective for the company. One analyst has rated the stock with a sell rating, seven have given a hold rating, sixteen have assigned a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.46.

Insider Transactions at Roku

In other news, CAO Matthew C. Banks sold 1,906 shares of the business’s stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $80.36, for a total value of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at approximately $583,092.16. The trade was a 20.80 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Anthony J. Wood sold 4,600 shares of Roku stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the transaction, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This trade represents a 42.42 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 72,111 shares of company stock valued at $6,575,362. 13.98% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roku

Hedge funds have recently modified their holdings of the stock. Geneos Wealth Management Inc. raised its position in Roku by 369.9% during the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after acquiring an additional 270 shares in the last quarter. Garde Capital Inc. acquired a new stake in Roku in the 1st quarter valued at $25,000. Vision Financial Markets LLC purchased a new stake in Roku in the 4th quarter worth $30,000. Golden State Wealth Management LLC raised its position in Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock worth $31,000 after acquiring an additional 247 shares during the period. Finally, Princeton Global Asset Management LLC purchased a new position in Roku during the first quarter valued at $35,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Down 8.5 %

The firm has a market cap of $8.98 billion, a price-to-earnings ratio of -69.16 and a beta of 2.17. The company’s 50-day moving average price is $68.66 and its 200-day moving average price is $75.17.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.27) by $0.08. The company had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. Roku’s quarterly revenue was up 15.8% on a year-over-year basis. During the same period in the previous year, the business earned ($0.35) EPS. Analysts predict that Roku, Inc. will post -0.3 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.