Roku (NASDAQ:ROKU) Shares Gap Down After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) gapped down before the market opened on Friday after Wedbush lowered their price target on the stock from $80.00 to $75.00. The stock had previously closed at $62.81, but opened at $60.73. Wedbush currently has an outperform rating on the stock. Roku shares last traded at $57.06, with a volume of 5,335,044 shares traded.

Other analysts have also issued reports about the company. Stephens reissued an “overweight” rating and issued a $105.00 price objective on shares of Roku in a report on Friday, February 16th. Wells Fargo & Company lowered their price objective on Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a report on Friday, April 12th. Needham & Company LLC reissued a “buy” rating and issued a $100.00 price objective on shares of Roku in a report on Friday. Piper Sandler reissued a “neutral” rating and issued a $65.00 price objective (down from $81.00) on shares of Roku in a report on Friday. Finally, Pivotal Research lowered their price objective on Roku from $85.00 to $75.00 and set a “hold” rating for the company in a report on Friday, February 16th. Four investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $86.05.

Insider Buying and Selling

In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s 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 of the company’s stock, valued at $13,930,039.44. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, SVP Stephen H. Kay sold 4,310 shares of the business’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $63.20, for a total transaction of $272,392.00. Following the sale, 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 SEC, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the 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 sale, the chief executive officer now owns 141,221 shares of the company’s stock, valued at approximately $13,930,039.44. The disclosure for this sale can be found here. Insiders have sold a total of 54,545 shares of company stock valued at $4,364,035 over the last quarter. Corporate insiders own 13.63% of the company’s stock.

Institutional Investors Weigh In On Roku

Large investors have recently modified their holdings of the stock. Gotham Asset Management LLC boosted its stake in shares of Roku by 200.3% during the 3rd 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 in the last quarter. Nordea Investment Management AB boosted its stake in shares of Roku by 8.2% during the 4th quarter. Nordea Investment Management AB now owns 7,247 shares of the company’s stock worth $669,000 after acquiring an additional 551 shares in the last quarter. Barclays PLC boosted its stake in shares of Roku by 13.0% during the 3rd quarter. Barclays PLC now owns 215,766 shares of the company’s stock worth $15,231,000 after acquiring an additional 24,765 shares in the last quarter. Deutsche Bank AG boosted its stake in shares of 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 acquiring an additional 33,500 shares in the last quarter. Finally, Vontobel Holding Ltd. boosted its stake in shares of Roku by 32.4% during the 4th quarter. Vontobel Holding Ltd. now owns 79,771 shares of the company’s stock worth $7,312,000 after acquiring an additional 19,543 shares in the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Stock Performance

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

Roku (NASDAQ:ROKU) last issued 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. The business had revenue of $881.50 million during the quarter, compared to analysts’ expectations of $843.54 million. Roku had a negative return on equity of 23.73% and a negative net margin of 15.64%. Roku’s revenue was up 19.0% compared to the same quarter last year. During the same quarter last year, the firm posted ($1.38) earnings per share. Equities research analysts forecast 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.