Bank of America Lowers Roku (NASDAQ:ROKU) Price Target to $75.00

Roku (NASDAQ:ROKU) had its target price reduced by Bank of America from $85.00 to $75.00 in a research report released on Friday morning, Benzinga reports. They currently have a buy rating on the stock.

A number of other equities research analysts have also recently commented on the company. Morgan Stanley lowered their target price on Roku from $65.00 to $60.00 and set an underweight rating on the stock in a research note on Friday, April 5th. Jefferies Financial Group initiated coverage on Roku in a research note on Thursday, May 2nd. They set an underperform rating and a $50.00 target price on the stock. Benchmark restated a buy rating and issued a $105.00 price objective on shares of Roku in a research note on Wednesday, July 10th. Wedbush restated an outperform rating and issued a $75.00 price objective on shares of Roku in a research note on Friday. Finally, JPMorgan Chase & Co. lowered their price objective on Roku from $90.00 to $80.00 and set an overweight rating on the stock in a research note on Friday. Four research analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat, Roku presently has an average rating of Hold and an average price target of $79.71.

Roku Price Performance

ROKU opened at $51.67 on Friday. The company has a market capitalization of $7.45 billion, a price-to-earnings ratio of -12.29 and a beta of 1.96. The firm’s fifty day moving average price is $58.43 and its two-hundred day moving average price is $65.01. Roku has a 1 year low of $48.33 and a 1 year high of $108.84.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, August 1st. The company reported ($0.24) EPS for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.21. The company had revenue of $968.18 million for the quarter, compared to analysts’ expectations of $937.78 million. Roku had a negative return on equity of 21.17% and a negative net margin of 13.16%. The business’s revenue for the quarter was up 14.3% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.76) EPS. As a group, equities analysts anticipate that Roku will post -1.94 EPS for the current year.

Insiders Place Their Bets

In related news, SVP Stephen H. Kay sold 3,322 shares of Roku stock in a transaction on Tuesday, June 4th. The shares were sold at an average price of $57.09, for a total value of $189,652.98. Following the transaction, the senior vice president now directly owns 82,036 shares of the company’s stock, valued at $4,683,435.24. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In other news, insider Charles Collier sold 7,181 shares of Roku stock in a transaction dated Tuesday, June 4th. The shares were sold at an average price of $57.03, for a total transaction of $409,532.43. Following the sale, the insider now owns 15,654 shares of the company’s stock, valued at approximately $892,747.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Stephen H. Kay sold 3,322 shares of Roku stock in a transaction dated Tuesday, June 4th. The shares were sold at an average price of $57.09, for a total transaction of $189,652.98. Following the sale, the senior vice president now directly owns 82,036 shares in the company, valued at approximately $4,683,435.24. The disclosure for this sale can be found here. Insiders sold a total of 27,075 shares of company stock valued at $1,556,005 over the last quarter. 13.98% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roku

Several hedge funds have recently bought and sold shares of the business. ARK Investment Management LLC lifted its stake in shares of Roku by 1.3% in the second quarter. ARK Investment Management LLC now owns 12,716,432 shares of the company’s stock worth $762,096,000 after buying an additional 159,785 shares in the last quarter. Vanguard Group Inc. lifted its stake in shares of Roku by 0.8% in the first quarter. Vanguard Group Inc. now owns 11,946,605 shares of the company’s stock worth $778,560,000 after buying an additional 92,658 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted 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 buying an additional 1,457,925 shares in the last quarter. Nikko Asset Management Americas Inc. lifted its stake in shares of Roku by 25.8% in the first quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock worth $462,108,000 after buying an additional 1,455,408 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Roku in the fourth quarter worth approximately $90,386,000. Institutional investors 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.