Roku (NASDAQ:ROKU) Trading Down 1.5% After Analyst Downgrade

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were down 1.5% during mid-day trading on Friday 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 $57.26 and last traded at $57.79. Approximately 895,092 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 5,635,657 shares. The stock had previously closed at $58.69.

ROKU has been the topic of several other reports. Citigroup reduced their price objective on Roku from $110.00 to $75.00 and set a "neutral" rating on the stock in a research note on Wednesday, February 21st. Pivotal Research reduced their price objective on Roku from $85.00 to $75.00 and set a "hold" rating on the stock in a research note on Friday, February 16th. Wells Fargo & Company reduced their price objective on Roku from $51.00 to $45.00 and set an "underweight" rating on the stock in a research note on Friday, April 12th. Susquehanna boosted their price objective on Roku from $100.00 to $110.00 and gave the stock a "positive" rating in a research note on Friday, February 16th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $100.00 target price on shares of Roku in a research note on Wednesday, February 21st. Five analysts have rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $84.76.

Insiders Place Their Bets

In related news, Director Jeffrey M. Blackburn bought 8,000 shares of the stock in a transaction on Wednesday, March 13th. The stock was bought at an average price of $63.96 per share, for a total transaction of $511,680.00. Following the completion of the acquisition, the director now directly owns 8,000 shares in the company, valued at $511,680. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, SVP Stephen H. Kay sold 4,310 shares of the company's stock in a transaction on Monday, March 4th. The stock was sold at an average price of $63.20, for a total value of $272,392.00. Following the transaction, the senior vice president now directly owns 81,459 shares of the company's stock, valued at approximately $5,148,208.80. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Jeffrey M. Blackburn bought 8,000 shares of the business's stock in a transaction that occurred on Wednesday, March 13th. The stock was purchased at an average cost of $63.96 per share, for a total transaction of $511,680.00. Following the completion of the transaction, the director now owns 8,000 shares in the company, valued at $511,680. The disclosure for this purchase can be found here. Insiders sold a total of 54,545 shares of company stock worth $4,364,035 over the last 90 days. Company insiders own 13.63% 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. Azzad Asset Management Inc. ADV grew its position in Roku by 21.4% during the 1st quarter. Azzad Asset Management Inc. ADV now owns 5,485 shares of the company's stock worth $357,000 after purchasing an additional 968 shares during the period. Sumitomo Mitsui Trust Holdings Inc. grew its position in Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company's stock worth $478,939,000 after purchasing an additional 1,457,925 shares during the period. Allspring Global Investments Holdings LLC grew its position in Roku by 243.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 2,045 shares of the company's stock worth $133,000 after purchasing an additional 1,449 shares during the period. SteelPeak Wealth LLC grew its position in Roku by 77.9% during the 1st quarter. SteelPeak Wealth LLC now owns 9,159 shares of the company's stock worth $597,000 after purchasing an additional 4,011 shares during the period. Finally, Counterpoint Mutual Funds LLC acquired a new stake in Roku during the 1st quarter worth about $275,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Trading Down 3.0 %

The firm has a 50-day simple moving average of $66.47 and a two-hundred day simple moving average of $78.93. The company has a market capitalization of $8.17 billion, a price-to-earnings ratio of -11.33 and a beta of 1.66.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, February 15th. The company reported ($0.55) earnings per share (EPS) 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 for the quarter, compared to analyst estimates of $967.72 million. During the same period in the prior year, the company posted ($1.70) EPS. The company's revenue for the quarter was up 13.5% on a year-over-year basis. Equities research analysts anticipate 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.