Roku (NASDAQ:ROKU) Shares Down 7.4% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) fell 7.4% on Monday after Macquarie lowered their price target on the stock from $88.00 to $72.00. Macquarie currently has an outperform rating on the stock. Roku traded as low as $48.49 and last traded at $49.19. 2,303,898 shares traded hands during trading, a decline of 52% from the average session volume of 4,760,168 shares. The stock had previously closed at $53.14.

ROKU has been the subject of several other research reports. Benchmark reaffirmed a “buy” rating and issued a $105.00 price target on shares of Roku in a report on Friday, August 2nd. JPMorgan Chase & Co. cut their price target on Roku from $90.00 to $80.00 and set an “overweight” rating for the company in a report on Friday, August 2nd. Piper Sandler reaffirmed a “neutral” rating and issued a $65.00 price target (down previously from $81.00) on shares of Roku in a report on Friday, April 26th. Rosenblatt Securities cut their price target on Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. Finally, Citigroup cut their price target on Roku from $75.00 to $70.00 and set a “neutral” rating for the company in a report on Tuesday, April 30th. Four analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $79.71.

Insider Activity

In other news, insider Charles Collier sold 3,590 shares of the stock in a transaction on Tuesday, July 16th. The stock was sold at an average price of $65.00, for a total value of $233,350.00. Following the transaction, the insider now owns 12,064 shares of the company’s stock, valued at approximately $784,160. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, SVP Stephen H. Kay sold 12,124 shares of the firm’s stock in a transaction on Thursday, June 13th. The stock was sold at an average price of $55.59, for a total transaction of $673,973.16. Following the sale, the senior vice president now owns 91,905 shares of the company’s stock, valued at approximately $5,108,998.95. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charles Collier sold 3,590 shares of the firm’s stock in a transaction on Tuesday, July 16th. The stock was sold at an average price of $65.00, for a total value of $233,350.00. Following the sale, the insider now directly owns 12,064 shares in the company, valued at approximately $784,160. The disclosure for this sale can be found here. Insiders have sold a total of 27,075 shares of company stock valued at $1,556,005 in the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Trading of Roku

Several hedge funds have recently added to or reduced their stakes in ROKU. GAMMA Investing LLC acquired a new stake in Roku during the 4th quarter worth $27,000. Quarry LP increased its holdings in Roku by 160.2% during the 4th quarter. Quarry LP now owns 432 shares of the company’s stock worth $40,000 after purchasing an additional 266 shares in the last quarter. Benjamin Edwards Inc. increased its holdings in Roku by 43.5% during the 1st quarter. Benjamin Edwards Inc. now owns 617 shares of the company’s stock worth $40,000 after purchasing an additional 187 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Roku by 835.6% during the 1st quarter. Geneos Wealth Management Inc. now owns 683 shares of the company’s stock worth $45,000 after purchasing an additional 610 shares in the last quarter. Finally, Natixis bought a new position in Roku during the 1st quarter worth about $53,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Roku Stock Performance

The stock has a fifty day simple moving average of $58.26 and a 200-day simple moving average of $64.54. The stock has a market cap of $7.64 billion, a P/E ratio of -13.29 and a beta of 1.96.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.45) by $0.21. The firm had revenue of $968.18 million during 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 company’s revenue was up 14.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.76) EPS. On average, research analysts anticipate that Roku, Inc. will post -1.94 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.