Moffett Nathanson Downgrades Roku (NASDAQ:ROKU) to Sell

Roku (NASDAQ:ROKUGet Free Report) was downgraded by equities research analysts at Moffett Nathanson from a “neutral” rating to a “sell” rating in a report issued on Friday, Marketbeat reports. They presently have a $55.00 price target on the stock. Moffett Nathanson’s price target points to a potential downside of 30.55% from the stock’s previous close.

Other research analysts have also issued reports about the company. Morgan Stanley upped their target price on Roku from $60.00 to $65.00 and gave the company an “underweight” rating in a research report on Tuesday, October 29th. Baird R W upgraded Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Macquarie reiterated an “outperform” rating and set a $90.00 target price on shares of Roku in a research report on Thursday, October 31st. Rosenblatt Securities upped their target price on Roku from $61.00 to $86.00 and gave the company a “neutral” rating in a research report on Thursday, October 31st. Finally, Benchmark reiterated a “buy” rating and set a $105.00 target price on shares of Roku in a research report on Thursday, September 12th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $82.62.

Read Our Latest Stock Analysis on ROKU

Roku Price Performance

Shares of NASDAQ ROKU opened at $79.19 on Friday. The stock’s fifty day moving average price is $76.26 and its two-hundred day moving average price is $70.06. Roku has a one year low of $48.33 and a one year high of $99.80. The firm has a market cap of $11.50 billion, a price-to-earnings ratio of -65.99 and a beta of 2.05.

Roku (NASDAQ:ROKUGet Free Report) last issued its quarterly earnings data on Wednesday, October 30th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.35) by $0.29. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm had revenue of $1.06 billion for the quarter, compared to analyst estimates of $1.02 billion. During the same period in the prior year, the firm posted ($2.33) EPS. The company’s revenue for the quarter was up 16.5% on a year-over-year basis. On average, equities analysts anticipate that Roku will post -1.1 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Dan Jedda sold 1,000 shares of the firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $82.73, for a total transaction of $82,730.00. Following the completion of the transaction, the chief financial officer now directly owns 64,555 shares in the company, valued at $5,340,635.15. This trade represents a 1.53 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $82.64, for a total value of $2,066,000.00. Following the transaction, the chief executive officer now owns 26,538 shares of the company’s stock, valued at $2,193,100.32. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 48,095 shares of company stock valued at $3,731,038. 13.98% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roku

A number of hedge funds have recently added to or reduced their stakes in ROKU. Raelipskie Partnership bought a new stake in Roku in the third quarter worth approximately $32,000. EverSource Wealth Advisors LLC increased its holdings in Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock worth $40,000 after purchasing an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new stake in Roku in the third quarter worth approximately $43,000. GS Investments Inc. increased its holdings in shares of Roku by 33.4% during the third quarter. GS Investments Inc. now owns 587 shares of the company’s stock valued at $44,000 after acquiring an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in shares of Roku during the second quarter valued at approximately $48,000. 86.30% of the stock is currently owned by institutional investors.

About Roku

(Get Free Report)

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.

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Analyst Recommendations for Roku (NASDAQ:ROKU)

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