Roku (NASDAQ:ROKU) Shares Down 0.8% After Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU) fell 0.8% during trading on Monday 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 $56.16 and last traded at $56.43. 1,031,922 shares changed hands during trading, a decline of 82% from the average session volume of 5,613,229 shares. The stock had previously closed at $56.90.

Several other analysts have also commented on ROKU. Stephens reaffirmed an “overweight” rating and set a $105.00 price target on shares of Roku in a research report on Friday, February 16th. Wells Fargo & Company reduced their price target on shares of Roku from $51.00 to $45.00 and set an “underweight” rating on the stock in a research report on Friday, April 12th. Oppenheimer lowered shares of Roku from an “outperform” rating to a “market perform” rating in a research report on Friday, February 16th. Citigroup cut their target price on Roku from $110.00 to $75.00 and set a “neutral” rating on the stock in a research report on Wednesday, February 21st. Finally, Pivotal Research cut their target price on Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a research report on Friday, February 16th. Five analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, Roku presently has a consensus rating of “Hold” and an average price target of $84.76.

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on 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 owns 141,221 shares in the company, valued at $13,930,039.44. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, insider Charles Collier sold 12,277 shares of the business’s stock in a transaction on Thursday, February 22nd. The shares were sold at an average price of $65.06, for a total transaction of $798,741.62. Following the completion of the transaction, the insider now owns 4,292 shares in the company, valued at $279,237.52. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total transaction of $2,466,000.00. Following the transaction, the chief executive officer now owns 141,221 shares of the company’s stock, valued at approximately $13,930,039.44. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 54,545 shares of company stock valued at $4,364,035. 13.63% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently modified their holdings of ROKU. GAMMA Investing LLC acquired a new position in Roku in the fourth quarter valued at $27,000. Creative Financial Designs Inc. ADV acquired a new position in Roku in the fourth quarter valued at $29,000. Federated Hermes Inc. acquired a new position in Roku in the third quarter valued at $37,000. Quarry LP boosted its stake in Roku by 160.2% in the fourth quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after acquiring an additional 266 shares in the last quarter. Finally, Headinvest LLC acquired a new position in Roku in the third quarter valued at $42,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Price Performance

The company has a market cap of $8.86 billion, a price-to-earnings ratio of -12.30 and a beta of 1.66. The firm’s 50 day simple moving average is $64.33 and its 200-day simple moving average is $78.82.

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