Roku (NASDAQ:ROKU) Shares Down 7.6% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) fell 7.6% during mid-day trading on Friday after Wedbush lowered their price target on the stock from $80.00 to $75.00. Wedbush currently has an outperform rating on the stock. Roku traded as low as $56.10 and last traded at $58.03. 9,321,263 shares were traded during trading, an increase of 64% from the average session volume of 5,697,011 shares. The stock had previously closed at $62.81.

A number of other research analysts also recently issued reports on the stock. Needham & Company LLC restated a “buy” rating and set a $100.00 target price on shares of Roku in a research report on Friday. Piper Sandler restated a “neutral” rating and set a $65.00 target price (down from $81.00) on shares of Roku in a research report on Friday. Morgan Stanley lowered their price target on Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research note on Friday, April 5th. Wells Fargo & Company lowered their price target on Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a research note on Friday, April 12th. Finally, Susquehanna upped their price target on Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research note on Friday, February 16th. Four investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $86.05.

Insider Transactions at Roku

In related news, Director Jeffrey M. Blackburn bought 8,000 shares of the business’s stock in a transaction on Wednesday, March 13th. The stock was acquired at an average price of $63.96 per share, for a total transaction of $511,680.00. Following the purchase, the director now directly owns 8,000 shares in the company, valued at $511,680. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Charles Collier sold 4,182 shares of Roku stock in a transaction dated Friday, March 8th. The stock was sold at an average price of $65.00, for a total transaction of $271,830.00. Following the completion of the sale, the insider now owns 8,474 shares in the company, valued at approximately $550,810. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Jeffrey M. Blackburn purchased 8,000 shares of the company’s stock in a transaction dated Wednesday, March 13th. The shares were acquired at an average price of $63.96 per share, with a total value of $511,680.00. Following the transaction, the director now owns 8,000 shares in the company, valued at approximately $511,680. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 54,545 shares of company stock worth $4,364,035. 13.63% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

A number of large investors have recently modified their holdings of the company. Harbour Investments Inc. increased its stake in shares of Roku by 3.3% during the third quarter. Harbour Investments Inc. now owns 3,499 shares of the company’s stock valued at $247,000 after buying an additional 113 shares during the period. Avantax Advisory Services Inc. boosted its position in shares of Roku by 0.9% during the fourth quarter. Avantax Advisory Services Inc. now owns 12,949 shares of the company’s stock valued at $1,187,000 after purchasing an additional 117 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of Roku by 0.3% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 50,971 shares of the company’s stock valued at $4,415,000 after purchasing an additional 150 shares in the last quarter. Spire Wealth Management boosted its position in shares of Roku by 35.3% during the third quarter. Spire Wealth Management now owns 621 shares of the company’s stock valued at $44,000 after purchasing an additional 162 shares in the last quarter. Finally, Arizona State Retirement System boosted its position in shares of Roku by 0.5% during the third quarter. Arizona State Retirement System now owns 33,655 shares of the company’s stock valued at $2,376,000 after purchasing an additional 173 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Stock Down 10.3 %

The company has a 50-day moving average of $62.80 and a two-hundred day moving average of $78.52. The company has a market capitalization of $8.09 billion, a P/E ratio of -14.12 and a beta of 1.66.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 25th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.64) by $0.29. Roku had a negative return on equity of 23.73% and a negative net margin of 15.64%. The business had revenue of $881.50 million for the quarter, compared to the consensus estimate of $843.54 million. During the same period in the previous year, the company posted ($1.38) earnings per share. The company’s revenue for the quarter was up 19.0% compared to the same quarter last year. As a group, equities analysts expect that Roku, Inc. will post -2.12 EPS for the current fiscal year.

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.