Roku (NASDAQ:ROKU) Stock Price Down 1.5% Following Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) fell 1.5% during 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. 895,092 shares changed hands during trading, a decline of 84% from the average session volume of 5,635,657 shares. The stock had previously closed at $58.69.

Other equities analysts also recently issued research reports about the stock. Susquehanna boosted their target price on shares of Roku from $100.00 to $110.00 and gave the stock a “positive” rating in a research note on Friday, February 16th. Morgan Stanley lowered their target price on shares of Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research note on Friday, April 5th. Stephens reissued an “overweight” rating and issued a $105.00 price target on shares of Roku in a research report on Friday, February 16th. Oppenheimer cut shares of Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Finally, Pivotal Research reduced their price target 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. Five equities research analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating to the company. According to MarketBeat, Roku has a consensus rating of “Hold” and a consensus target price of $84.76.

Insider Buying and Selling

In other news, Director Jeffrey M. Blackburn purchased 8,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 13th. The stock was purchased at an average cost of $63.96 per share, with a total value of $511,680.00. Following the completion of the acquisition, the director now directly owns 8,000 shares of the company’s stock, valued at approximately $511,680. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, CEO Anthony J. Wood sold 25,000 shares of the 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 completion of the transaction, the chief executive officer now directly owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Jeffrey M. Blackburn purchased 8,000 shares of the business’s stock in a transaction that occurred on Wednesday, March 13th. The shares were purchased at an average cost of $63.96 per share, with a total value of $511,680.00. Following the completion of the acquisition, the director now directly owns 8,000 shares of the company’s stock, valued at $511,680. The disclosure for this purchase can be found here. Insiders sold 54,545 shares of company stock valued at $4,364,035 over the last ninety days. Corporate insiders own 13.63% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Quarry LP acquired a new position in Roku during the second quarter worth about $25,000. ICA Group Wealth Management LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $25,000. GAMMA Investing LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $27,000. LM Advisors LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $27,000. Finally, Creative Financial Designs Inc. ADV acquired a new stake in shares of Roku in the fourth quarter valued at approximately $29,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Price Performance

The firm’s 50-day moving average price is $66.47 and its 200 day moving average price is $78.93. The firm has a market capitalization of $8.17 billion, a price-to-earnings ratio of -11.33 and a beta of 1.66.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, February 15th. The company reported ($0.55) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.65) by $0.10. The business had revenue of $984.40 million for the quarter, compared to the consensus estimate of $967.72 million. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. The company’s quarterly revenue was up 13.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($1.70) earnings per share. On average, analysts predict that Roku, Inc. will post -2.12 earnings per share 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.