Roku (NASDAQ:ROKU) Lowered to “Hold” Rating by Wall Street Zen

Roku (NASDAQ:ROKU) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

A number of other equities analysts have also recently weighed in on the stock. Wells Fargo & Company upped their price objective on shares of Roku from $113.00 to $116.00 and gave the stock an “overweight” rating in a research report on Friday, October 31st. Raymond James Financial restated a “market perform” rating on shares of Roku in a research report on Friday, October 31st. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 31st. Benchmark reiterated a “buy” rating on shares of Roku in a research note on Monday, October 27th. Finally, Morgan Stanley reissued an “underweight” rating on shares of Roku in a report on Friday, October 31st. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $111.14.

Roku Trading Up 1.2%

Shares of ROKU opened at $96.74 on Friday. The firm has a market cap of $14.29 billion, a P/E ratio of -483.68 and a beta of 2.18. Roku has a 12 month low of $52.43 and a 12 month high of $116.66. The stock’s 50 day moving average is $99.11 and its two-hundred day moving average is $90.44.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.07 by $0.09. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The business had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the prior year, the company posted ($0.06) EPS. The business’s quarterly revenue was up 14.0% on a year-over-year basis. Roku has set its Q4 2025 guidance at EPS. Equities research analysts forecast that Roku will post -0.3 EPS for the current year.

Insiders Place Their Bets

In related news, insider Charles Collier sold 14,361 shares of the stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $94.99, for a total value of $1,364,151.39. Following the completion of the sale, the insider owned 200 shares of the company’s stock, valued at approximately $18,998. This trade represents a 98.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $99.09, for a total value of $297,270.00. Following the transaction, the chief financial officer owned 77,420 shares in the company, valued at approximately $7,671,547.80. The trade was a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 515,274 shares of company stock valued at $53,880,874. Insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of ROKU. GAMMA Investing LLC increased its position in Roku by 9.5% during the third quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock worth $112,000 after purchasing an additional 97 shares during the last quarter. Cornerstone Wealth Management LLC boosted its holdings in Roku by 3.8% in the 3rd quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock valued at $273,000 after purchasing an additional 100 shares during the last quarter. Thoroughbred Financial Services LLC grew its stake in shares of Roku by 1.0% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock valued at $995,000 after buying an additional 100 shares during the period. Aviance Capital Partners LLC increased its holdings in shares of Roku by 2.6% during the 3rd quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock worth $418,000 after buying an additional 106 shares during the last quarter. Finally, O Keefe Stevens Advisory Inc. increased its holdings in shares of Roku by 1.8% during the 3rd quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company’s stock worth $624,000 after buying an additional 113 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

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.