Roku (NASDAQ:ROKU) Trading Down 8.4% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU)’s stock price fell 8.4% on Friday after Loop Capital lowered their price target on the stock from $90.00 to $80.00. Loop Capital currently has a hold rating on the stock. Roku traded as low as $58.55 and last traded at $61.63. 6,556,239 shares traded hands during trading, an increase of 76% from the average session volume of 3,720,714 shares. The stock had previously closed at $67.27.

Several other equities research analysts have also recently issued reports on the stock. JMP Securities reissued a “market outperform” rating and issued a $95.00 price objective on shares of Roku in a research report on Friday. Needham & Company LLC reissued a “buy” rating and issued a $88.50 price objective on shares of Roku in a research note on Friday. Rosenblatt Securities reduced their price objective on Roku from $100.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday. Jefferies Financial Group raised Roku from an “underperform” rating to a “hold” rating and increased their price target for the stock from $55.00 to $100.00 in a research report on Thursday, February 20th. Finally, Bank of America began coverage on Roku in a report on Thursday, March 27th. They issued a “buy” rating and a $100.00 price objective for the company. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have issued a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $89.46.

Insider Activity at Roku

In related news, CFO Dan Jedda sold 5,000 shares of the company’s stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $100.40, for a total value of $502,000.00. Following the sale, the chief financial officer now owns 58,555 shares in the company, valued at $5,878,922. This represents a 7.87 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, February 14th. The stock was sold at an average price of $100.40, for a total transaction of $2,510,000.00. Following the transaction, the chief executive officer now directly owns 26,538 shares of the company’s stock, valued at $2,664,415.20. This represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 72,111 shares of company stock valued at $6,575,362 in the last ninety days. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Entropy Technologies LP lifted its holdings in Roku by 264.4% during the fourth quarter. Entropy Technologies LP now owns 25,525 shares of the company’s stock valued at $1,898,000 after purchasing an additional 18,520 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock valued at $159,353,000 after acquiring an additional 56,820 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of Roku by 3.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company’s stock worth $73,661,000 after acquiring an additional 34,898 shares during the last quarter. Achmea Investment Management B.V. raised its stake in Roku by 146.4% in the 4th quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company’s stock valued at $756,000 after purchasing an additional 6,042 shares during the last quarter. Finally, Allstate Corp acquired a new stake in Roku in the 4th quarter valued at about $275,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Down 8.5 %

The stock has a 50-day moving average of $68.66 and a 200 day moving average 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 released its quarterly earnings data on Thursday, May 1st. The company reported ($0.19) EPS for the quarter, beating analysts’ consensus estimates of ($0.27) by $0.08. The firm had revenue of $1.02 billion for the quarter, compared to analysts’ expectations of $1.01 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The firm’s quarterly revenue was up 15.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.35) earnings per share. Research analysts forecast that Roku, Inc. will post -0.3 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.