Roku (NASDAQ:ROKU) Shares Down 1% After Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price traded down 1% on Monday after Loop Capital lowered their price target on the stock from $90.00 to $80.00. Loop Capital currently has a hold rating on the stock. Roku traded as low as $59.05 and last traded at $60.94. 1,832,668 shares traded hands during trading, a decline of 51% from the average session volume of 3,745,896 shares. The stock had previously closed at $61.55.

Several other equities analysts have also issued reports on the company. Wells Fargo & Company lowered their price target on Roku from $129.00 to $93.00 and set an "overweight" rating for the company in a research note on Monday, April 28th. UBS Group lowered their target price on shares of Roku from $90.00 to $72.00 and set a "neutral" rating for the company in a research note on Tuesday, April 15th. Bank of America started coverage on shares of Roku in a research report on Thursday, March 27th. They set a "buy" rating and a $100.00 price target on the stock. Piper Sandler assumed coverage on Roku in a research note on Thursday, April 17th. They set a "neutral" rating and a $65.00 price objective on the stock. Finally, JMP Securities reissued a "market outperform" rating and issued a $95.00 target price on shares of Roku in a research note on Friday. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $89.46.

Insider Activity at Roku

In other news, CAO Matthew C. Banks sold 1,906 shares of the company's stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $80.36, for a total transaction of $153,166.16. Following the transaction, the chief accounting officer now owns 7,256 shares of the company's stock, valued at $583,092.16. This represents a 20.80 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony J. Wood sold 4,600 shares of the business's stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $345,000.00. Following the completion of the sale, the chief executive officer now owns 6,243 shares in the company, valued at $468,225. This represents a 42.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 72,111 shares of company stock worth $6,575,362. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the business. FMR LLC lifted its holdings in Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company's stock worth $1,426,134,000 after purchasing an additional 4,613,570 shares in the last quarter. Marshall Wace LLP increased its holdings in Roku by 663.9% during the 4th quarter. Marshall Wace LLP now owns 2,335,813 shares of the company's stock worth $173,644,000 after acquiring an additional 2,030,036 shares during the period. Cadian Capital Management LP purchased a new stake in Roku in the 4th quarter worth approximately $87,632,000. Jacobs Levy Equity Management Inc. boosted its holdings in Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after purchasing an additional 1,082,548 shares during the period. Finally, Two Sigma Investments LP increased its holdings in shares of Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock worth $90,017,000 after purchasing an additional 726,077 shares during the period. 86.30% of the stock is owned by institutional investors.

Roku Price Performance

The company has a market cap of $8.85 billion, a P/E ratio of -68.38 and a beta of 2.06. The company has a 50 day moving average of $68.66 and a 200-day moving average of $75.15.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.27) by $0.08. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The company's revenue was up 15.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.35) earnings per share. Research analysts anticipate that Roku, Inc. will post -0.3 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.

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