Roku (NASDAQ:ROKU) Shares Gap Down Following Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price gapped down before the market opened on Friday after Evercore ISI lowered their price target on the stock from $105.00 to $80.00. The stock had previously closed at $67.27, but opened at $59.86. Evercore ISI currently has an in-line rating on the stock. Roku shares last traded at $60.57, with a volume of 4,079,232 shares changing hands.

A number of other equities analysts also recently issued reports on the stock. Wells Fargo & Company decreased their price target on shares of Roku from $129.00 to $93.00 and set an "overweight" rating for the company in a research note on Monday. Jefferies Financial Group upgraded Roku from an "underperform" rating to a "hold" rating and upped their target price for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. JPMorgan Chase & Co. lowered their target price on Roku from $115.00 to $75.00 and set an "overweight" rating for the company in a research note on Tuesday, April 22nd. Compass Point started coverage on Roku in a research note on Sunday, March 23rd. They issued a "buy" rating on the stock. Finally, Moffett Nathanson upgraded Roku from a "sell" rating to a "neutral" rating and set a $70.00 price objective for the company in a report on Tuesday, March 4th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have issued a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $88.37.

Insider Activity

In other news, CAO Matthew C. Banks sold 1,906 shares of the business's stock in a transaction that occurred on Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total transaction of $153,166.16. Following the completion of the transaction, the chief accounting officer now directly owns 7,256 shares of the company's stock, valued at $583,092.16. The trade was a 20.80 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Monday, February 10th. The shares were sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the transaction, the chief executive officer now owns 26,538 shares in the company, valued at approximately $2,333,486.34. This trade represents a 48.51 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 71,905 shares of company stock valued at $6,560,876 over the last ninety days. 13.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently added to or reduced their stakes in the stock. Entropy Technologies LP grew its holdings in shares of Roku by 264.4% in the fourth quarter. Entropy Technologies LP now owns 25,525 shares of the company's stock worth $1,898,000 after acquiring an additional 18,520 shares during the period. Geode Capital Management LLC boosted its position in Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock worth $159,353,000 after purchasing an additional 56,820 shares during the last quarter. Charles Schwab Investment Management Inc. grew its stake in shares of Roku by 3.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company's stock valued at $73,661,000 after purchasing an additional 34,898 shares during the period. Achmea Investment Management B.V. increased its position in shares of Roku by 146.4% during the 4th quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company's stock valued at $756,000 after purchasing an additional 6,042 shares during the last quarter. Finally, Allstate Corp bought a new position in shares of Roku in the 4th quarter worth approximately $275,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Trading Down 9.3 %

The company's 50 day moving average price is $69.14 and its two-hundred day moving average price is $75.29. The stock has a market cap of $8.90 billion, a P/E ratio of -68.50 and a beta of 2.17.

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.