Roku (NASDAQ:ROKU) Sets New 12-Month Low on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) reached a new 52-week low during mid-day trading 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 $48.31 and last traded at $48.31, with a volume of 138637 shares traded. The stock had previously closed at $53.14.

A number of other equities analysts also recently commented on the company. Seaport Res Ptn upgraded Roku from a “neutral” rating to a “buy” rating in a report on Monday, April 29th. Morgan Stanley dropped their price target on shares of Roku from $65.00 to $60.00 and set an “underweight” rating on the stock in a research note on Friday, April 5th. Benchmark reaffirmed a “buy” rating and issued a $105.00 price objective on shares of Roku in a research note on Friday, August 2nd. Jefferies Financial Group began coverage on Roku in a research report on Thursday, May 2nd. They set an “underperform” rating and a $50.00 target price for the company. Finally, Rosenblatt Securities decreased their price target on shares of Roku from $89.00 to $61.00 and set a “neutral” rating for the company in a report on Friday, August 2nd. Four equities research analysts have rated the stock with a sell rating, eight have issued a hold rating and eleven have assigned a buy rating to the company’s stock. Based on data from MarketBeat, Roku currently has an average rating of “Hold” and an average target price of $79.71.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in ROKU. GAMMA Investing LLC acquired a new position in Roku during the 4th quarter valued at about $27,000. Quarry LP boosted its stake in Roku by 160.2% in the fourth quarter. Quarry LP now owns 432 shares of the company’s stock valued at $40,000 after acquiring an additional 266 shares during the last quarter. Allspring Global Investments Holdings LLC boosted its stake in Roku by 1,822.6% in the fourth quarter. Allspring Global Investments Holdings LLC now owns 596 shares of the company’s stock valued at $55,000 after acquiring an additional 565 shares during the last quarter. Benjamin Edwards Inc. grew 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 acquiring an additional 187 shares during the period. Finally, ICA Group Wealth Management LLC acquired a new position in shares of Roku in the 4th quarter valued at $58,000. Institutional investors own 86.30% of the company’s stock.

Roku Stock Performance

The company has a 50-day moving average price of $58.26 and a 200-day moving average price of $64.54. The firm has a market capitalization of $7.64 billion, a P/E ratio of -13.29 and a beta of 1.96.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.45) by $0.21. The company had revenue of $968.18 million during the quarter, compared to analyst estimates 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 for the quarter was up 14.3% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.76) EPS. Equities analysts predict that Roku, Inc. will post -1.94 EPS for the current 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.