Roku (NASDAQ:ROKU) Stock Price Down 2.3% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU - Get Free Report) shares were down 2.3% during trading on Friday after Wells Fargo & Company lowered their price target on the stock from $51.00 to $45.00. Wells Fargo & Company currently has an underweight rating on the stock. Roku traded as low as $60.04 and last traded at $60.54. Approximately 1,051,087 shares traded hands during trading, a decline of 82% from the average daily volume of 5,812,512 shares. The stock had previously closed at $61.95.

A number of other equities analysts have also weighed in on ROKU. Pivotal Research reduced their price objective on Roku from $85.00 to $75.00 and set a "hold" rating for the company in a research note on Friday, February 16th. Citigroup reduced their price objective on Roku from $110.00 to $75.00 and set a "neutral" rating for the company in a research note on Wednesday, February 21st. Needham & Company LLC reiterated a "buy" rating and set a $100.00 price objective on shares of Roku in a research note on Wednesday, February 21st. Morgan Stanley reduced their price objective on Roku from $65.00 to $60.00 and set an "underweight" rating for the company in a research note on Friday, April 5th. Finally, Seaport Res Ptn lowered Roku from a "neutral" rating to a "sell" rating in a research note on Monday, December 18th. Five investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $86.67.

Insider Buying and Selling

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the transaction, the chief executive officer now directly owns 141,221 shares of the company's stock, valued at approximately $13,930,039.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the transaction, the chief executive officer now directly owns 141,221 shares of the company's stock, valued at approximately $13,930,039.44. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Charles Collier sold 12,277 shares of the firm's stock in a transaction that occurred on Thursday, February 22nd. The stock was 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 directly owns 4,292 shares in the company, valued at $279,237.52. The disclosure for this sale can be found here. In the last three months, insiders have sold 54,545 shares of company stock worth $4,364,035. Insiders own 13.63% of the company's stock.

Institutional Trading of Roku

Several institutional investors have recently made changes to their positions in ROKU. Quarry LP purchased a new stake in shares of Roku during the 2nd quarter valued at approximately $25,000. ICA Group Wealth Management LLC purchased a new stake in shares of Roku during the 4th quarter valued at approximately $25,000. GAMMA Investing LLC purchased a new stake in shares of Roku during the 4th quarter valued at approximately $27,000. LM Advisors LLC purchased a new stake in shares of Roku during the 4th quarter valued at approximately $27,000. Finally, Creative Financial Designs Inc. ADV purchased a new stake in shares of Roku during the 4th quarter valued at approximately $29,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Stock Performance

The stock has a market cap of $8.60 billion, a PE ratio of -11.93 and a beta of 1.66. The company's 50-day moving average price is $69.22 and its 200 day moving average price is $79.21.

Roku (NASDAQ:ROKU - Get Free Report) last announced its earnings results on Thursday, February 15th. The company reported ($0.55) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.65) by $0.10. The company had revenue of $984.40 million for the quarter, compared to analyst estimates of $967.72 million. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The firm's quarterly revenue was up 13.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($1.70) earnings per share. As a group, equities research analysts predict that Roku, Inc. will post -2.16 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.