Roku (NASDAQ:ROKU) Shares Down 0.8% on Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) fell 0.8% during trading on Monday 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 $56.16 and last traded at $56.43. 1,031,922 shares were traded during mid-day trading, a decline of 82% from the average session volume of 5,613,229 shares. The stock had previously closed at $56.90.

Several other equities analysts have also recently weighed in on the stock. Susquehanna raised their target price on shares of Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, February 16th. Pivotal Research cut their target price on shares of Roku from $85.00 to $75.00 and set a “hold” rating for the company in a research note on Friday, February 16th. Citigroup cut their target price 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. Wells Fargo & Company cut their target price on shares of Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research note on Friday, April 12th. Finally, Stephens reaffirmed an “overweight” rating and set a $105.00 target price on shares of Roku in a research note on Friday, February 16th. Five research 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 currently has a consensus rating of “Hold” and an average price target of $84.76.

Insider Buying and Selling

In other news, Director Jeffrey M. Blackburn purchased 8,000 shares of the company’s stock in a transaction that occurred on Wednesday, March 13th. The stock was purchased at an average cost of $63.96 per share, with a total value of $511,680.00. Following the purchase, the director now owns 8,000 shares in the company, valued at $511,680. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. In related news, Director Jeffrey M. Blackburn acquired 8,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 13th. The stock was bought at an average price of $63.96 per share, for a total transaction of $511,680.00. Following the acquisition, the director now directly owns 8,000 shares of the company’s stock, valued at approximately $511,680. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 4,182 shares of Roku stock in a transaction dated Friday, March 8th. The shares were sold at an average price of $65.00, for a total transaction of $271,830.00. Following the sale, the insider now owns 8,474 shares of the company’s stock, valued at approximately $550,810. The disclosure for this sale can be found here. In the last ninety days, insiders sold 54,545 shares of company stock valued at $4,364,035. Company insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. CWM LLC lifted its holdings in Roku by 26.0% during the 3rd quarter. CWM LLC now owns 8,140 shares of the company’s stock valued at $575,000 after buying an additional 1,679 shares in the last quarter. DnB Asset Management AS raised its holdings in shares of Roku by 9.8% in the 3rd quarter. DnB Asset Management AS now owns 20,300 shares of the company’s stock valued at $1,433,000 after purchasing an additional 1,812 shares in the last quarter. HB Wealth Management LLC raised its holdings in shares of Roku by 10.3% in the 3rd quarter. HB Wealth Management LLC now owns 4,266 shares of the company’s stock valued at $301,000 after purchasing an additional 397 shares in the last quarter. SG Americas Securities LLC bought a new stake in shares of Roku in the 3rd quarter valued at about $1,536,000. Finally, Meridian Wealth Management LLC bought a new stake in shares of Roku in the 3rd quarter valued at about $234,000. Institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The firm has a market cap of $8.86 billion, a P/E ratio of -12.30 and a beta of 1.66. The firm’s fifty day moving average price is $64.33 and its 200 day moving average price is $78.82.

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