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

Roku, Inc. (NASDAQ:ROKU)’s stock price hit 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 trading hands. The stock had previously closed at $53.14.

Several other equities analysts also recently commented on ROKU. JPMorgan Chase & Co. cut their price objective on Roku from $90.00 to $80.00 and set an “overweight” rating on the stock in a research report on Friday, August 2nd. Piper Sandler restated a “neutral” rating and issued a $65.00 price target (down from $81.00) on shares of Roku in a report on Friday, April 26th. Jefferies Financial Group assumed coverage on shares of Roku in a report on Thursday, May 2nd. They set an “underperform” rating and a $50.00 price objective for the company. Wedbush restated an “outperform” rating and issued a $75.00 target price on shares of Roku in a research note on Friday, August 2nd. Finally, Morgan Stanley decreased their price target on shares of Roku from $65.00 to $60.00 and set an “underweight” rating for the company in a research note on Friday, April 5th. Four analysts have rated the stock with a sell rating, eight have given a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $79.71.

Insiders Place Their Bets

In related news, 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 completion of the transaction, the insider now owns 12,064 shares in the company, valued at approximately $784,160. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, Director Mai Fyfield sold 650 shares of the company’s stock in a transaction on Monday, June 10th. The shares were sold at an average price of $57.88, for a total value of $37,622.00. Following the sale, the director now directly owns 3,259 shares of the company’s stock, valued at approximately $188,630.92. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, 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 transaction of $233,350.00. Following the completion of the sale, the insider now owns 12,064 shares in the company, valued at approximately $784,160. The disclosure for this sale can be found here. In the last quarter, insiders have sold 27,075 shares of company stock valued at $1,556,005. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Several hedge funds have recently added to or reduced their stakes in ROKU. Sumitomo Mitsui Trust Holdings Inc. lifted its stake in shares of Roku by 24.7% in the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock valued at $478,939,000 after purchasing an additional 1,457,925 shares during the period. Nikko Asset Management Americas Inc. grew its position in shares of Roku by 25.8% during the 1st quarter. Nikko Asset Management Americas Inc. now owns 7,091,891 shares of the company’s stock valued at $462,108,000 after acquiring an additional 1,455,408 shares during the period. Norges Bank purchased a new position in shares of Roku in the 4th quarter valued at about $90,386,000. Quadrature Capital Ltd acquired a new position in Roku in the 4th quarter worth about $35,856,000. Finally, Vanguard Group Inc. boosted its position in Roku by 3.3% during the fourth quarter. Vanguard Group Inc. now owns 11,853,947 shares of the company’s stock worth $1,086,533,000 after purchasing an additional 380,409 shares in the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Roku Stock Up 2.6 %

The company has a market cap of $7.64 billion, a PE ratio of -13.29 and a beta of 1.96. The business has a 50-day simple moving average of $58.26 and a 200-day simple moving average of $64.54.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, August 1st. The company reported ($0.24) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.45) by $0.21. The firm had revenue of $968.18 million for the quarter, compared to analysts’ expectations of $937.78 million. Roku had a negative net margin of 13.16% and a negative return on equity of 21.17%. The firm’s revenue for the quarter was up 14.3% compared to the same quarter last year. During the same quarter last year, the company earned ($0.76) EPS. On average, research analysts forecast that Roku, Inc. will post -1.94 EPS 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.