Roku (NASDAQ:ROKU) Trading Down 7.6% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU)’s stock price dropped 7.6% on Friday after Wedbush lowered their price target on the stock from $80.00 to $75.00. Wedbush currently has an outperform rating on the stock. Roku traded as low as $56.10 and last traded at $58.03. Approximately 9,321,263 shares traded hands during trading, an increase of 64% from the average daily volume of 5,697,011 shares. The stock had previously closed at $62.81.

Several other equities research analysts have also recently commented on the company. Oppenheimer cut Roku from an “outperform” rating to a “market perform” rating in a research note on Friday, February 16th. Stephens restated an “overweight” rating and issued a $105.00 target price on shares of Roku in a report on Friday, February 16th. Susquehanna boosted their target price on Roku from $100.00 to $110.00 and gave the stock a “positive” rating in a report on Friday, February 16th. Wells Fargo & Company cut their price target on Roku from $51.00 to $45.00 and set an “underweight” rating for the company in a report on Friday, April 12th. Finally, Piper Sandler reiterated a “neutral” rating and set a $65.00 price target (down from $81.00) on shares of Roku in a report on Friday. Four analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat, Roku currently has a consensus rating of “Hold” and an average target price of $86.05.

Insiders Place Their Bets

In other Roku news, Director Jeffrey M. Blackburn bought 8,000 shares of the firm’s stock in a transaction that occurred on Wednesday, March 13th. The shares were acquired at an average cost of $63.96 per share, with a total value of $511,680.00. Following the acquisition, the director now owns 8,000 shares of the company’s stock, valued at $511,680. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, insider Charles Collier sold 4,182 shares of the business’s stock in a transaction on Friday, March 8th. The stock was sold at an average price of $65.00, for a total value of $271,830.00. Following the completion of the sale, the insider now directly owns 8,474 shares in the company, valued at approximately $550,810. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jeffrey M. Blackburn purchased 8,000 shares of Roku stock in a transaction that occurred on Wednesday, March 13th. The stock was purchased at an average price of $63.96 per share, with a total value of $511,680.00. Following the completion of the purchase, the director now directly owns 8,000 shares in the company, valued at $511,680. The disclosure for this purchase can be found here. Insiders have sold 54,545 shares of company stock valued at $4,364,035 in the last 90 days. 13.63% of the stock is currently owned by insiders.

Institutional Trading of Roku

Institutional investors have recently added to or reduced their stakes in the company. Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its position in shares of Roku by 4.1% during the 1st quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 28,000 shares of the company’s stock valued at $1,825,000 after acquiring an additional 1,100 shares during the period. Spire Wealth Management lifted its position in shares of Roku by 77.9% during the 1st quarter. Spire Wealth Management now owns 1,224 shares of the company’s stock worth $80,000 after buying an additional 536 shares during the last quarter. Global Retirement Partners LLC lifted its position in shares of Roku by 76.5% during the 1st quarter. Global Retirement Partners LLC now owns 1,207 shares of the company’s stock worth $79,000 after buying an additional 523 shares during the last quarter. Kessler Investment Group LLC lifted its position in shares of Roku by 2.6% during the 1st quarter. Kessler Investment Group LLC now owns 62,233 shares of the company’s stock worth $4,056,000 after buying an additional 1,593 shares during the last quarter. Finally, PFG Investments LLC bought a new stake in shares of Roku during the 1st quarter worth $305,000. 86.30% of the stock is currently owned by institutional investors.

Roku Stock Performance

The business has a fifty day simple moving average of $62.80 and a 200-day simple moving average of $78.52. The firm has a market cap of $8.09 billion, a price-to-earnings ratio of -14.12 and a beta of 1.66.

Roku (NASDAQ:ROKU) last issued its earnings results on Thursday, April 25th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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%. The business’s revenue for the quarter was up 19.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.38) EPS. On average, equities analysts anticipate that Roku, Inc. will post -2.12 earnings per share for the current 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.