Wedbush Lowers Roku (NASDAQ:ROKU) Price Target to $75.00

Roku (NASDAQ:ROKU) had its price target cut by Wedbush from $80.00 to $75.00 in a research report issued on Friday, Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Wedbush’s target price would indicate a potential upside of 31.05% from the company’s current price.

Several other research firms have also weighed in on ROKU. Oppenheimer lowered Roku from an “outperform” rating to a “market perform” rating in a research note on Friday, February 16th. Citigroup reduced their price objective on Roku from $110.00 to $75.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 21st. Susquehanna increased their target price on Roku from $100.00 to $110.00 and gave the company a “positive” rating in a research report on Friday, February 16th. Piper Sandler reiterated a “neutral” rating and issued a $65.00 target price (down from $81.00) on shares of Roku in a research report on Friday. Finally, Stephens reiterated an “overweight” rating and issued a $105.00 target price on shares of Roku in a research report on Friday, February 16th. Five equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $83.57.

Roku Price Performance

ROKU traded down $5.58 during trading on Friday, hitting $57.23. The stock had a trading volume of 9,978,484 shares, compared to its average volume of 5,702,598. The company has a 50 day moving average price of $63.11 and a 200-day moving average price of $78.59. The firm has a market cap of $8.21 billion, a price-to-earnings ratio of -11.56 and a beta of 1.66. Roku has a one year low of $51.62 and a one year high of $108.84.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 25th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.64) by $0.29. The business had revenue of $881.50 million during the quarter, compared to the consensus estimate of $843.54 million. Roku had a negative return on equity of 29.21% and a negative net margin of 20.36%. The firm’s quarterly revenue was up 19.0% on a year-over-year basis. During the same period in the previous year, the company posted ($1.38) EPS. As a group, sell-side analysts predict that Roku will post -2.12 EPS for the current fiscal year.

Insider Activity at Roku

In related news, SVP Stephen H. Kay sold 4,310 shares of Roku stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $63.20, for a total transaction of $272,392.00. Following the transaction, the senior vice president now owns 81,459 shares of the company’s stock, valued at $5,148,208.80. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the business’s stock in a transaction on Monday, February 12th. The stock was sold at an average price of $98.64, for a total value of $2,466,000.00. Following the transaction, the chief executive officer now owns 141,221 shares of the company’s stock, valued at $13,930,039.44. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, SVP Stephen H. Kay sold 4,310 shares of the business’s stock in a transaction on Monday, March 4th. The stock was sold at an average price of $63.20, for a total value of $272,392.00. Following the completion of the transaction, the senior vice president now directly owns 81,459 shares in the company, valued at approximately $5,148,208.80. The disclosure for this sale can be found here. Insiders have sold a total of 54,545 shares of company stock valued at $4,364,035 over the last 90 days. Insiders own 13.63% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Gotham Asset Management LLC raised its stake in shares of Roku by 200.3% in the third quarter. Gotham Asset Management LLC now owns 41,128 shares of the company’s stock valued at $2,903,000 after buying an additional 27,431 shares during the period. Nordea Investment Management AB grew its position in Roku by 8.2% during the fourth quarter. Nordea Investment Management AB now owns 7,247 shares of the company’s stock worth $669,000 after buying an additional 551 shares in the last quarter. Barclays PLC grew its position in Roku by 13.0% during the third quarter. Barclays PLC now owns 215,766 shares of the company’s stock worth $15,231,000 after buying an additional 24,765 shares in the last quarter. Deutsche Bank AG grew its position in Roku by 27.6% during the third quarter. Deutsche Bank AG now owns 154,729 shares of the company’s stock worth $10,922,000 after buying an additional 33,500 shares in the last quarter. Finally, Vontobel Holding Ltd. boosted its holdings in shares of Roku by 32.4% in the 4th quarter. Vontobel Holding Ltd. now owns 79,771 shares of the company’s stock worth $7,312,000 after purchasing an additional 19,543 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.