Roku (NASDAQ:ROKU) Trading Down 1% Following Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) were down 1% during trading on Monday after Loop Capital lowered their price target on the stock from $90.00 to $80.00. Loop Capital currently has a hold rating on the stock. Roku traded as low as $59.05 and last traded at $60.94. Approximately 1,832,668 shares changed hands during mid-day trading, a decline of 51% from the average daily volume of 3,745,896 shares. The stock had previously closed at $61.55.

A number of other research firms also recently commented on ROKU. Piper Sandler assumed coverage on Roku in a research report on Thursday, April 17th. They issued a “neutral” rating and a $65.00 target price on the stock. Compass Point assumed coverage on Roku in a report on Sunday, March 23rd. They set a “buy” rating on the stock. JMP Securities reissued a “market outperform” rating and issued a $95.00 target price on shares of Roku in a report on Friday. Guggenheim reaffirmed a “buy” rating and set a $100.00 price target on shares of Roku in a research note on Friday. Finally, Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and lifted their price objective for the stock from $55.00 to $100.00 in a research note on Thursday, February 20th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, sixteen have issued a buy rating and two have given a strong buy rating to the company. According to MarketBeat, Roku presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.46.

Insider Activity at Roku

In other news, insider Charles Collier sold 7,181 shares of the stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $78.25, for a total transaction of $561,913.25. Following the transaction, the insider now directly owns 7,380 shares in the company, valued at approximately $577,485. This trade represents a 49.32 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the transaction, the chief financial officer now owns 68,843 shares in the company, valued at $5,163,225. This represents a 1.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 72,111 shares of company stock worth $6,575,362 in the last 90 days. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently made changes to their positions in ROKU. Geneos Wealth Management Inc. raised its position in shares of Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock valued at $25,000 after purchasing an additional 270 shares during the last quarter. Garde Capital Inc. purchased a new position in shares of Roku in the first quarter worth $25,000. Vision Financial Markets LLC acquired a new stake in shares of Roku during the fourth quarter worth $30,000. Golden State Wealth Management LLC grew its holdings in shares of Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock valued at $31,000 after buying an additional 247 shares during the last quarter. Finally, Game Plan Financial Advisors LLC acquired a new position in shares of Roku in the 4th quarter valued at $37,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Performance

The stock has a 50 day moving average of $68.16 and a 200-day moving average of $75.01. The company has a market cap of $8.82 billion, a PE ratio of -67.89 and a beta of 2.06.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.27) by $0.08. The firm had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The company’s revenue for the quarter was up 15.8% compared to the same quarter last year. During the same period last year, the business posted ($0.35) earnings per share. Equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current 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.