Roku (NASDAQ:ROKU) Stock Price Down 7.6% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 7.6% 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. Approximately 9,321,263 shares traded hands during mid-day trading, an increase of 64% from the average daily volume of 5,697,011 shares. The stock had previously closed at $62.81.

Several other research firms have also weighed in on ROKU. Pivotal Research reduced their price objective on shares of Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a research note on Friday, February 16th. Piper Sandler restated a “neutral” rating and issued a $65.00 price objective (down previously from $81.00) on shares of Roku in a research report on Friday. Needham & Company LLC reaffirmed a “buy” rating and set a $100.00 price target on shares of Roku in a research note on Friday. Rosenblatt Securities reaffirmed a “neutral” rating and issued a $89.00 target price on shares of Roku in a research report on Friday. Finally, Oppenheimer lowered shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Friday, February 16th. Five equities research 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.com, Roku has an average rating of “Hold” and an average target price of $83.90.

Insider Buying and Selling at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total value 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 Securities & Exchange Commission, which can be accessed through the SEC website. In other news, Director Jeffrey M. Blackburn purchased 8,000 shares of the business’s stock in a transaction dated Wednesday, March 13th. The stock was bought at an average price of $63.96 per share, with a total value of $511,680.00. Following the acquisition, the director now owns 8,000 shares in the company, valued at approximately $511,680. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the 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 sale, the chief executive officer now owns 141,221 shares in the company, valued at approximately $13,930,039.44. The disclosure for this sale can be found here. Insiders sold 54,545 shares of company stock valued at $4,364,035 in the last three months. Corporate insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in ROKU. SG Americas Securities LLC acquired a new position in shares of Roku during the 3rd quarter worth $1,536,000. Meridian Wealth Management LLC acquired a new position in Roku during the third quarter worth about $234,000. Oak Thistle LLC bought a new position in shares of Roku in the third quarter worth about $297,000. Handelsbanken Fonder AB boosted its stake in shares of Roku by 8.1% in the 3rd quarter. Handelsbanken Fonder AB now owns 21,300 shares of the company’s stock valued at $1,504,000 after purchasing an additional 1,600 shares in the last quarter. Finally, Commonwealth Equity Services LLC grew its holdings in shares of Roku by 209.1% during the 3rd quarter. Commonwealth Equity Services LLC now owns 105,339 shares of the company’s stock valued at $7,436,000 after purchasing an additional 71,257 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

Roku Trading Down 10.3 %

The firm has a market capitalization of $8.09 billion, a price-to-earnings ratio of -11.23 and a beta of 1.66. The stock’s 50-day moving average is $62.80 and its 200-day moving average is $78.48.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, April 25th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.64) by $0.29. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. The company had revenue of $881.50 million during the quarter, compared to the consensus estimate of $843.54 million. During the same period in the prior year, the business earned ($1.38) earnings per share. The company’s revenue for the quarter was up 19.0% compared to the same quarter last year. On average, equities research analysts anticipate 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.