Roku (NASDAQ:ROKU) Trading Down 2.3% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) shares traded down 2.3% on Friday after Wells Fargo & Company lowered their price target on the stock from $51.00 to $45.00. Wells Fargo & Company currently has an underweight rating on the stock. Roku traded as low as $60.04 and last traded at $60.54. 1,051,087 shares changed hands during trading, a decline of 82% from the average session volume of 5,812,512 shares. The stock had previously closed at $61.95.

Other research analysts have also recently issued reports about the company. Seaport Res Ptn cut Roku from a “neutral” rating to a “sell” rating in a report on Monday, December 18th. Needham & Company LLC reissued a “buy” rating and set a $100.00 price objective on shares of Roku in a research note on Wednesday, February 21st. Morgan Stanley dropped their target price on Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a report on Friday, April 5th. Stephens reiterated an “overweight” rating and set a $105.00 price target on shares of Roku in a report on Friday, February 16th. Finally, Pivotal Research lowered their price target on shares of Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a research report on Friday, February 16th. Five analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, Roku currently has a consensus rating of “Hold” and an average target price of $86.67.

Insider Buying and Selling

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction dated 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 sale, the chief executive officer now directly owns 141,221 shares in the company, valued at $13,930,039.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the completion of the transaction, the chief executive officer now owns 141,221 shares in the company, valued at $13,930,039.44. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Charles Collier sold 12,277 shares of the company’s stock in a transaction 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 approximately $279,237.52. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 54,545 shares of company stock valued at $4,364,035. Corporate insiders own 13.63% of the company’s stock.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently made changes to their positions in the stock. Gotham Asset Management LLC lifted its stake in Roku by 200.3% in the third quarter. Gotham Asset Management LLC now owns 41,128 shares of the company’s stock worth $2,903,000 after acquiring an additional 27,431 shares during the last quarter. Nordea Investment Management AB increased its holdings in Roku by 8.2% in the fourth quarter. Nordea Investment Management AB now owns 7,247 shares of the company’s stock valued at $669,000 after buying an additional 551 shares during the last quarter. Barclays PLC raised its stake in Roku by 13.0% in the third quarter. Barclays PLC now owns 215,766 shares of the company’s stock valued at $15,231,000 after buying an additional 24,765 shares in the last quarter. Deutsche Bank AG lifted its holdings in Roku by 27.6% during the 3rd quarter. Deutsche Bank AG now owns 154,729 shares of the company’s stock worth $10,922,000 after buying an additional 33,500 shares during the last quarter. Finally, New York Life Investment Management LLC increased its holdings in shares of Roku by 109.7% in the 3rd quarter. New York Life Investment Management LLC now owns 14,299 shares of the company’s stock valued at $1,009,000 after acquiring an additional 7,480 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Performance

The firm has a 50-day moving average price of $69.22 and a two-hundred day moving average price of $79.29. The firm has a market cap of $8.60 billion, a price-to-earnings ratio of -11.93 and a beta of 1.66.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, February 15th. The company reported ($0.55) earnings per share for the quarter, topping analysts’ consensus estimates 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 company had revenue of $984.40 million for the quarter, compared to analysts’ expectations of $967.72 million. During the same quarter last year, the company earned ($1.70) earnings per share. The firm’s revenue for the quarter was up 13.5% on a year-over-year basis. Research analysts anticipate that Roku, Inc. will post -2.16 earnings per share for the current 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.