Roku (NASDAQ:ROKU) Trading Down 1.5% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) shares dropped 1.5% during trading on Friday after Wedbush lowered their price target on the stock from $120.00 to $80.00. Wedbush currently has an outperform rating on the stock. Roku traded as low as $57.26 and last traded at $57.79. Approximately 895,092 shares changed hands during trading, a decline of 84% from the average daily volume of 5,635,657 shares. The stock had previously closed at $58.69.

Several other brokerages have also recently weighed in on ROKU. Oppenheimer cut Roku from an “outperform” rating to a “market perform” rating in a report on Friday, February 16th. Wells Fargo & Company cut their price objective on shares of Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research report on Friday, April 12th. Morgan Stanley decreased their target price on shares of Roku from $65.00 to $60.00 and set an “underweight” rating on the stock in a report on Friday, April 5th. Citigroup cut their price target on shares of Roku from $110.00 to $75.00 and set a “neutral” rating for the company in a report on Wednesday, February 21st. Finally, Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective on shares of Roku in a research note on Wednesday, February 21st. Five investment analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $84.76.

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction on 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 owns 141,221 shares in the company, valued at $13,930,039.44. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, insider Charles Collier sold 12,277 shares of the company’s stock in a transaction that occurred on Thursday, February 22nd. The stock was sold at an average price of $65.06, for a total value of $798,741.62. Following the sale, the insider now directly owns 4,292 shares in the company, valued at $279,237.52. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief executive officer now owns 141,221 shares of the company’s stock, valued at approximately $13,930,039.44. 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 Investors Weigh In On Roku

Institutional investors have recently modified their holdings of the company. MetLife Investment Management LLC bought a new stake in Roku during the first quarter valued at $955,000. Synovus Financial Corp boosted its holdings in shares of Roku by 45.2% during the 1st quarter. Synovus Financial Corp now owns 3,501 shares of the company’s stock worth $448,000 after buying an additional 1,090 shares in the last quarter. Dimensional Fund Advisors LP grew its position in shares of Roku by 2.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,224 shares of the company’s stock worth $11,806,000 after buying an additional 2,130 shares during the period. Cetera Investment Advisers increased its stake in shares of Roku by 32.5% in the 1st quarter. Cetera Investment Advisers now owns 10,620 shares of the company’s stock valued at $1,330,000 after acquiring an additional 2,605 shares in the last quarter. Finally, Brighton Jones LLC lifted its position in shares of Roku by 8.6% during the 1st quarter. Brighton Jones LLC now owns 1,874 shares of the company’s stock valued at $235,000 after acquiring an additional 148 shares during the period. 86.30% of the stock is owned by institutional investors.

Roku Stock Down 2.3 %

The firm has a market capitalization of $8.23 billion, a P/E ratio of -11.52 and a beta of 1.66. The company’s 50 day moving average is $67.19 and its 200-day moving average is $79.07.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, February 15th. The company reported ($0.55) EPS for the quarter, beating analysts’ consensus estimates of ($0.65) by $0.10. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The business had revenue of $984.40 million during the quarter, compared to analyst estimates of $967.72 million. During the same period in the previous year, the company posted ($1.70) EPS. The firm’s revenue was up 13.5% compared to the same quarter last year. On average, analysts predict that Roku, Inc. will post -2.12 EPS 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.