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

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

ROKU has been the topic of several other reports. Piper Sandler boosted their price target on Roku from $60.00 to $75.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. UBS Group began 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. Needham & Company LLC reaffirmed a “buy” rating and issued a $100.00 price objective on shares of Roku in a report on Tuesday. Benchmark reiterated a “buy” rating and set a $105.00 target price on shares of Roku in a research note on Thursday, September 12th. Finally, Baird R W upgraded shares of Roku from a “hold” rating to a “strong-buy” rating in a research report on Monday, November 18th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $82.62.

Roku Price Performance

Roku stock opened at $83.00 on Friday. The company 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 12 month low of $48.33 and a 12 month high of $99.80. The stock’s 50-day moving average is $75.99 and its 200-day moving average is $69.89.

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

Insider Activity at Roku

In other Roku news, insider Charles Collier sold 10,771 shares of the company’s stock in a transaction dated Monday, November 18th. The shares were sold at an average price of $71.14, for a total value of $766,248.94. Following the completion of the sale, the insider now directly owns 3,790 shares of the company’s stock, valued at approximately $269,620.60. This represents a 73.97 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Dan Jedda sold 1,000 shares of Roku stock in a transaction that occurred on 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 represents a 1.53 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 48,095 shares of company stock worth $3,731,038 over the last quarter. 13.98% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Holocene Advisors LP acquired a new position in shares of Roku in the 3rd quarter worth $129,015,000. Westfield Capital Management Co. LP increased its stake in Roku by 126.1% in the 3rd quarter. Westfield Capital Management Co. LP now owns 1,535,576 shares of the company’s stock worth $114,646,000 after purchasing an additional 856,401 shares in the last quarter. Point72 Asset Management L.P. increased its stake in Roku by 352.5% in the 3rd quarter. Point72 Asset Management L.P. now owns 651,658 shares of the company’s stock worth $48,653,000 after purchasing an additional 507,643 shares in the last quarter. JAT Capital Mgmt LP lifted its stake in Roku by 470.2% during the third quarter. JAT Capital Mgmt LP now owns 540,577 shares of the company’s stock valued at $40,359,000 after buying an additional 445,777 shares in the last quarter. Finally, FMR LLC boosted its holdings in shares of Roku by 1.7% in the third quarter. FMR LLC now owns 14,570,372 shares of the company’s stock worth $1,087,824,000 after buying an additional 244,793 shares during the period. Institutional investors and hedge funds 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.