Roku (NASDAQ:ROKU) Shares Down 1% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) shares were down 1% on Monday after Citigroup lowered their price target on the stock from $81.00 to $68.00. Citigroup currently has a neutral rating on the stock. Roku traded as low as $59.05 and last traded at $60.94. Approximately 1,832,668 shares were traded during trading, a decline of 51% from the average daily volume of 3,745,896 shares. The stock had previously closed at $61.55.

Several other brokerages have also recently issued reports on ROKU. Benchmark reiterated a “buy” rating and issued a $130.00 price target on shares of Roku in a research note on Friday, May 2nd. JMP Securities reissued a “market outperform” rating and set a $95.00 target price on shares of Roku in a report on Friday, May 2nd. Evercore ISI dropped their price target on Roku from $105.00 to $80.00 and set an “in-line” rating for the company in a research note on Friday, May 2nd. Bank of America initiated coverage on shares of Roku in a research note on Thursday, March 27th. They set a “buy” rating and a $100.00 price objective on the stock. Finally, JPMorgan Chase & Co. dropped their target price on shares of Roku from $115.00 to $75.00 and set an “overweight” rating for the company in a research report on Tuesday, April 22nd. One analyst has rated the stock with a sell rating, eight have given a hold rating, fifteen have issued a buy rating and two have issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $87.93.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 4,600 shares of Roku stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the transaction, the chief executive officer now directly owns 6,243 shares of the company’s stock, valued at approximately $468,225. The trade was a 42.42 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO Matthew C. Banks sold 1,906 shares of the company’s stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares in the company, valued at $583,092.16. This trade represents a 20.80 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 72,111 shares of company stock valued at $6,575,362. 13.98% of the stock is currently owned by company insiders.

Institutional Trading of Roku

Hedge funds have recently bought and sold shares of the company. FMR LLC lifted its holdings in shares of Roku by 31.7% in the fourth quarter. FMR LLC now owns 19,183,942 shares of the company’s stock worth $1,426,134,000 after buying an additional 4,613,570 shares in the last quarter. Marshall Wace LLP lifted its position in Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock valued at $173,644,000 after purchasing an additional 2,030,036 shares during the last quarter. Cadian Capital Management LP bought a new stake in Roku during the fourth quarter worth approximately $87,632,000. Jacobs Levy Equity Management Inc. raised its position in Roku by 505.3% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company’s stock valued at $96,402,000 after purchasing an additional 1,082,548 shares during the period. Finally, Two Sigma Investments LP raised its holdings in Roku by 149.8% during the 4th quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company’s stock valued at $90,017,000 after buying an additional 726,077 shares during the period. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The stock has a market cap of $8.80 billion, a P/E ratio of -67.74 and a beta of 2.06. The company’s fifty day moving average price is $67.73 and its 200-day moving average price is $74.91.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping analysts’ consensus estimates 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 prior year, the firm earned ($0.35) earnings per share. The firm’s revenue for the quarter was up 15.8% compared to the same quarter last year. Analysts anticipate that Roku, Inc. will post -0.3 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.