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

Roku, Inc. (NASDAQ:ROKU) dropped 1.5% during mid-day 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 were traded during mid-day trading, a decline of 84% from the average daily volume of 5,635,657 shares. The stock had previously closed at $58.69.

A number of other research firms have also recently weighed in on ROKU. Pivotal Research decreased their price objective on shares of Roku from $85.00 to $75.00 and set a “hold” rating for the company in a research report on Friday, February 16th. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective on shares of Roku in a research report on Wednesday, February 21st. Stephens reissued an “overweight” rating and issued a $105.00 price objective on shares of Roku in a research report on Friday, February 16th. Morgan Stanley decreased their price objective on shares of Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research report on Friday, April 5th. Finally, Susquehanna upped their price objective on shares of Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research report on Friday, February 16th. Five 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 an average rating of “Hold” and an average price target of $84.76.

Insiders Place Their Bets

In other Roku news, SVP Stephen H. Kay sold 4,310 shares of the firm’s stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $63.20, for a total value of $272,392.00. Following the transaction, the senior vice president now owns 81,459 shares of the company’s stock, valued at $5,148,208.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Roku news, SVP Stephen H. Kay sold 4,310 shares of the firm’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $63.20, for a total value of $272,392.00. Following the sale, the senior vice president now owns 81,459 shares in the company, valued at $5,148,208.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jeffrey M. Blackburn purchased 8,000 shares of the company’s stock in a transaction on Wednesday, March 13th. The stock was purchased 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 of the company’s stock, valued at approximately $511,680. The disclosure for this purchase can be found here. Insiders have sold 54,545 shares of company stock valued at $4,364,035 over the last quarter. Insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

Several large investors have recently made changes to their positions in ROKU. ICA Group Wealth Management LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $25,000. Quarry LP acquired a new position in shares of Roku during the second quarter valued at approximately $25,000. GAMMA Investing LLC acquired a new position in shares of Roku during the fourth quarter valued at approximately $27,000. LM Advisors LLC acquired a new position in shares of Roku during the fourth quarter valued at approximately $27,000. Finally, Creative Financial Designs Inc. ADV acquired a new position in shares of Roku during the fourth quarter valued at approximately $29,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Down 3.0 %

The firm has a market cap of $8.17 billion, a price-to-earnings ratio of -11.33 and a beta of 1.66. The stock’s 50 day moving average is $65.69 and its 200 day moving average is $78.83.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data 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 net margin of 20.36% and a negative return on equity of 29.21%. The business had revenue of $984.40 million for the quarter, compared to analyst estimates of $967.72 million. During the same quarter last year, the business earned ($1.70) earnings per share. The business’s revenue for the quarter was up 13.5% on a year-over-year basis. Analysts anticipate 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.