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

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'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 were traded during trading, an increase of 64% from the average daily volume of 5,697,011 shares. The stock had previously closed at $62.81.

A number of other analysts have also recently weighed in on the company. Susquehanna increased their price objective on Roku from $100.00 to $110.00 and gave the stock a "positive" rating in a research report on Friday, February 16th. Rosenblatt Securities reiterated a "neutral" rating and issued a $89.00 price target on shares of Roku in a report on Friday. Benchmark reduced their price target on Roku from $115.00 to $105.00 and set a "buy" rating for the company in a research report on Friday. Needham & Company LLC restated a "buy" rating and issued a $100.00 price target on shares of Roku in a research report on Friday. Finally, Citigroup cut their price target on Roku from $110.00 to $75.00 and set a "neutral" rating for the company in a research note on Wednesday, February 21st. Five analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $83.90.

Insider Activity at Roku

In other news, Director Jeffrey M. Blackburn bought 8,000 shares of the company's stock in a transaction dated Wednesday, March 13th. The stock was bought at an average cost of $63.96 per share, for a total transaction of $511,680.00. Following the transaction, the director now owns 8,000 shares of the company's stock, valued at $511,680. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction 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 sale, 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 legal filing with the SEC, which is available at the SEC website. Also, Director Jeffrey M. Blackburn purchased 8,000 shares of the business's stock in a transaction on Wednesday, March 13th. The shares were purchased at an average cost of $63.96 per share, for a total transaction of $511,680.00. Following the transaction, the director now directly owns 8,000 shares of the company's stock, valued at approximately $511,680. The disclosure for this purchase can be found here. Insiders sold a total of 54,545 shares of company stock valued at $4,364,035 over the last quarter. 13.63% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Several institutional investors have recently made changes to their positions in ROKU. FMR LLC lifted its holdings in shares of Roku by 85.9% in the 3rd quarter. FMR LLC now owns 9,441,349 shares of the company's stock worth $666,465,000 after purchasing an additional 4,363,754 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. raised its stake in shares of Roku by 24.7% in the first 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 last quarter. Norges Bank bought a new position in shares of Roku in the fourth quarter valued at approximately $90,386,000. Lord Abbett & CO. LLC purchased a new position in shares of Roku during the third quarter valued at approximately $55,182,000. Finally, Wellington Management Group LLP grew its holdings in Roku by 34.6% during the third quarter. Wellington Management Group LLP now owns 2,543,081 shares of the company's stock worth $179,516,000 after buying an additional 653,940 shares in the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Trading Down 10.3 %

The stock's fifty day simple moving average is $63.11 and its 200-day simple moving average is $78.59. The stock has a market capitalization of $8.09 billion, a PE ratio of -11.26 and a beta of 1.66.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, April 25th. The company reported ($0.35) EPS for the quarter, beating analysts' consensus estimates of ($0.64) by $0.29. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The company had revenue of $881.50 million during the quarter, compared to the consensus estimate of $843.54 million. During the same period last year, the business posted ($1.38) earnings per share. Roku's revenue was up 19.0% on a year-over-year basis. As a group, analysts anticipate that Roku, Inc. will post -2.12 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.