Roku (NASDAQ:ROKU) Downgraded to Sell Rating by Moffett Nathanson

Roku (NASDAQ:ROKU) was downgraded by equities research analysts at Moffett Nathanson from a “neutral” rating to a “sell” rating in a note issued to investors on Friday, Marketbeat reports. They currently have a $55.00 price objective on the stock. Moffett Nathanson’s target price would suggest a potential downside of 33.73% from the stock’s previous close.

Other research analysts have also issued research reports about the stock. Wolfe Research upgraded shares of Roku from a “peer perform” rating to an “outperform” rating and set a $93.00 price target on the stock in a research note on Thursday, September 12th. Wells Fargo & Company increased their target price on shares of Roku from $72.00 to $74.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 31st. Rosenblatt Securities boosted their price target on Roku from $61.00 to $86.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Bank of America increased their price objective on Roku from $75.00 to $90.00 and gave the company a “buy” rating in a report on Monday, September 30th. Finally, UBS Group assumed coverage on shares of Roku in a research note on Friday, November 22nd. They issued a “neutral” rating and a $73.00 target price on the stock. Three analysts have rated the stock with a sell rating, eight have issued a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $82.62.

Roku Trading Up 6.4 %

Shares of NASDAQ:ROKU opened at $83.00 on Friday. The firm has a market cap of $12.05 billion, a price-to-earnings ratio of -69.17 and a beta of 2.05. Roku has a 1 year low of $48.33 and a 1 year high of $99.80. The business has a fifty day simple moving average of $75.99 and a 200 day simple moving average of $69.89.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, October 30th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.35) by $0.29. The business had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.02 billion. Roku had a negative return on equity of 7.22% and a negative net margin of 4.42%. The firm’s revenue was up 16.5% on a year-over-year basis. During the same period in the previous year, the company earned ($2.33) EPS. On average, sell-side analysts forecast that Roku will post -1.1 EPS for the current year.

Insider Activity

In related news, CAO Matthew C. Banks sold 8,693 shares of Roku stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.44, for a total transaction of $621,027.92. Following the completion of the transaction, the chief accounting officer now directly owns 7,264 shares of the company’s stock, valued at $518,940.16. This trade represents a 54.48 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of the company’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $76.25, for a total transaction of $76,250.00. Following the sale, the chief financial officer now directly owns 53,267 shares in the company, valued at $4,061,608.75. This represents a 1.84 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 48,095 shares of company stock worth $3,731,038. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Raelipskie Partnership acquired a new stake in Roku during the 3rd quarter valued at $32,000. EverSource Wealth Advisors LLC increased its stake in shares of Roku by 123.4% in the second quarter. EverSource Wealth Advisors LLC now owns 679 shares of the company’s stock valued at $40,000 after buying an additional 375 shares in the last quarter. Future Financial Wealth Managment LLC bought a new position in shares of Roku in the third quarter valued at about $43,000. GS Investments Inc. lifted its position in Roku by 33.4% during the 3rd quarter. GS Investments Inc. now owns 587 shares of the company’s stock worth $44,000 after buying an additional 147 shares in the last quarter. Finally, Cedar Wealth Management LLC bought a new stake in Roku during the 2nd quarter worth about $48,000. 86.30% of the stock is owned by institutional investors and hedge funds.

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.