Roku (NASDAQ:ROKU) Trading Down 1.6% Following Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) dropped 1.6% during trading on Wednesday after UBS Group lowered their price target on the stock from $90.00 to $72.00. UBS Group currently has a neutral rating on the stock. Roku traded as low as $57.25 and last traded at $58.42. Approximately 592,384 shares changed hands during mid-day trading, a decline of 84% from the average daily volume of 3,791,122 shares. The stock had previously closed at $59.39.

Several other analysts have also recently commented on ROKU. Rosenblatt Securities reiterated a “neutral” rating and issued a $86.00 target price on shares of Roku in a report on Thursday, February 13th. JMP Securities upped their price objective on shares of Roku from $95.00 to $115.00 and gave the company a “market outperform” rating in a research note on Friday, February 14th. Benchmark lifted their target price on shares of Roku from $100.00 to $130.00 and gave the stock a “buy” rating in a research note on Friday, February 14th. Needham & Company LLC reaffirmed a “buy” rating and set a $88.50 price target on shares of Roku in a research report on Monday. Finally, Wedbush reiterated an “outperform” rating and set a $100.00 price target on shares of Roku in a report on Monday, February 10th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, eighteen have given a buy rating and two have issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Roku currently has an average rating of “Moderate Buy” and a consensus target price of $94.11.

Insider Transactions at Roku

In other news, CFO Dan Jedda sold 1,000 shares of the stock in a transaction dated Thursday, March 20th. The shares were sold at an average price of $75.00, for a total value of $75,000.00. Following the sale, the chief financial officer now directly owns 68,843 shares of the company’s stock, valued at approximately $5,163,225. This represents a 1.43 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 4,600 shares of the firm’s stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $75.00, for a total transaction of $345,000.00. Following the completion of the transaction, the chief executive officer now owns 6,243 shares of the company’s stock, valued at $468,225. This trade represents a 42.42 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 71,905 shares of company stock valued at $6,560,876 over the last three months. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently bought and sold shares of ROKU. FMR LLC grew its position in shares of Roku by 31.7% during the 4th quarter. FMR LLC now owns 19,183,942 shares of the company’s stock valued at $1,426,134,000 after purchasing an additional 4,613,570 shares in the last quarter. Vanguard Group Inc. boosted its stake in Roku by 1.5% during the fourth quarter. Vanguard Group Inc. now owns 12,249,091 shares of the company’s stock valued at $910,597,000 after buying an additional 185,676 shares during the period. Marshall Wace LLP grew its position in Roku by 663.9% during the fourth quarter. Marshall Wace LLP now owns 2,335,813 shares of the company’s stock worth $173,644,000 after buying an additional 2,030,036 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in Roku by 10.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,269,751 shares of the company’s stock worth $168,734,000 after acquiring an additional 215,841 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Roku by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 2,147,259 shares of the company’s stock valued at $159,353,000 after acquiring an additional 56,820 shares in the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Stock Performance

The stock has a market cap of $8.53 billion, a P/E ratio of -65.69 and a beta of 2.17. The stock has a 50-day moving average price of $74.56 and a 200-day moving average price of $76.13.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.20. The business had revenue of $1.20 billion during the quarter, compared to analysts’ expectations of $1.15 billion. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. Sell-side analysts forecast that Roku, Inc. will post -0.3 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.