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

Roku, Inc. (NASDAQ:ROKU)’s share price gapped down before the market opened on Friday after Loop Capital lowered their price target on the stock from $90.00 to $80.00. The stock had previously closed at $67.27, but opened at $59.86. Loop Capital currently has a hold rating on the stock. Roku shares last traded at $60.57, with a volume of 4,079,232 shares changing hands.

Several other equities analysts have also recently weighed in on ROKU. Redburn Atlantic upgraded shares of Roku from a “neutral” rating to a “buy” rating and set a $100.00 price objective on the stock in a research note on Monday, April 7th. Citizens Jmp upgraded shares of Roku to a “strong-buy” rating in a research report on Tuesday, January 21st. Jefferies Financial Group raised shares of Roku from an “underperform” rating to a “hold” rating and boosted their price objective for the company from $55.00 to $100.00 in a research report on Thursday, February 20th. UBS Group decreased their target price on Roku from $90.00 to $72.00 and set a “neutral” rating on the stock in a report on Tuesday, April 15th. Finally, JPMorgan Chase & Co. cut their price target on Roku from $115.00 to $75.00 and set an “overweight” rating for the company in a report on Tuesday, April 22nd. One equities research analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $89.46.

Insider Activity at Roku

In other news, CAO Matthew C. Banks sold 1,906 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The stock was sold at an average price of $80.36, for a total transaction of $153,166.16. Following the sale, the chief accounting officer now directly owns 7,256 shares of the company’s stock, valued at $583,092.16. This represents a 20.80 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Dan Jedda sold 5,000 shares of the firm’s stock in a transaction on Friday, February 14th. The shares were sold at an average price of $100.40, for a total transaction of $502,000.00. Following the completion of the transaction, the chief financial officer now directly owns 58,555 shares of the company’s stock, valued at approximately $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 72,111 shares of company stock valued at $6,575,362. Corporate insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently bought and sold shares of the business. Geneos Wealth Management Inc. increased its holdings in shares of Roku by 369.9% in the 4th quarter. Geneos Wealth Management Inc. now owns 343 shares of the company’s stock worth $25,000 after buying an additional 270 shares during the last quarter. Garde Capital Inc. purchased a new position in Roku in the first quarter worth about $25,000. Vision Financial Markets LLC bought a new stake in Roku during the fourth quarter worth approximately $30,000. Golden State Wealth Management LLC raised its position in Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company’s stock valued at $31,000 after purchasing an additional 247 shares during the period. Finally, Game Plan Financial Advisors LLC bought a new stake in shares of Roku in the 4th quarter valued at approximately $37,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The stock has a fifty day moving average price of $68.66 and a 200 day moving average price of $75.16. The stock has a market cap of $8.98 billion, a PE ratio of -69.16 and a beta of 2.06.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, topping the consensus estimate of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The company had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period in the previous year, the firm earned ($0.35) earnings per share. Roku’s quarterly revenue was up 15.8% compared to the same quarter last year. As a group, equities analysts anticipate that Roku, Inc. will post -0.3 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.