Wells Fargo & Company Issues Pessimistic Forecast for Roku (NASDAQ:ROKU) Stock Price

Roku (NASDAQ:ROKU - Get Free Report) had its price target lowered by equities researchers at Wells Fargo & Company from $129.00 to $93.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price target would suggest a potential upside of 38.25% from the company's previous close.

A number of other research analysts have also weighed in on the company. JMP Securities reissued a "market outperform" rating and set a $95.00 target price on shares of Roku in a report on Thursday, April 24th. Jefferies Financial Group raised Roku from an "underperform" rating to a "hold" rating and boosted their target price for the stock from $55.00 to $100.00 in a report on Thursday, February 20th. Citizens Jmp raised Roku to a "strong-buy" rating in a report on Tuesday, January 21st. Moffett Nathanson raised Roku from a "sell" rating to a "neutral" rating and set a $70.00 target price on the stock in a report on Tuesday, March 4th. Finally, Pivotal Research raised Roku from a "hold" rating to a "buy" rating and boosted their target price for the stock from $65.00 to $125.00 in a report on Friday, February 14th. One research analyst has rated the stock with a sell rating, six have issued a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $90.39.

Roku Trading Down 1.3 %

Shares of Roku stock traded down $0.91 during trading hours on Monday, reaching $67.27. 10,192,404 shares of the company's stock were exchanged, compared to its average volume of 3,707,989. The company has a 50 day moving average of $69.62 and a two-hundred day moving average of $75.36. Roku has a fifty-two week low of $48.33 and a fifty-two week high of $104.96. The stock has a market cap of $9.82 billion, a P/E ratio of -75.58 and a beta of 2.17.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. During the same period in the previous year, the business posted ($0.35) EPS. The business's revenue was up 15.8% compared to the same quarter last year. As a group, analysts expect that Roku will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In related 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 completion of the sale, the chief accounting officer now directly owns 7,256 shares in the company, 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 through this link. Also, CFO Dan Jedda sold 1,000 shares of the company's stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $75.00, for a total value of $75,000.00. Following the completion of the transaction, the chief financial officer now directly owns 68,843 shares of the company's stock, valued at approximately $5,163,225. The trade was a 1.43 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 71,905 shares of company stock worth $6,560,876 in the last ninety days. 13.98% of the stock is owned by insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the company. Entropy Technologies LP increased its holdings in Roku by 264.4% in the 4th quarter. Entropy Technologies LP now owns 25,525 shares of the company's stock worth $1,898,000 after purchasing an additional 18,520 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Roku by 2.7% in the fourth quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company's stock valued at $159,353,000 after buying an additional 56,820 shares during the period. Charles Schwab Investment Management Inc. increased its stake in shares of Roku by 3.7% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 990,867 shares of the company's stock valued at $73,661,000 after buying an additional 34,898 shares during the period. Achmea Investment Management B.V. increased its stake in shares of Roku by 146.4% in the fourth quarter. Achmea Investment Management B.V. now owns 10,168 shares of the company's stock valued at $756,000 after buying an additional 6,042 shares during the period. Finally, Allstate Corp acquired a new stake in shares of Roku in the fourth quarter valued at about $275,000. Institutional investors and hedge funds own 86.30% of the company's stock.

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.