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

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

Several other brokerages have also recently issued reports on ROKU. Benchmark decreased their target price on shares of Roku from $115.00 to $105.00 and set a “buy” rating on the stock in a research report on Friday. Pivotal Research cut their price target on shares of Roku from $85.00 to $75.00 and set a “hold” rating on the stock in a report on Friday, February 16th. Citigroup cut their price target on shares of Roku from $110.00 to $75.00 and set a “neutral” rating on the stock in a report on Wednesday, February 21st. Wells Fargo & Company dropped their target price on shares of Roku from $51.00 to $45.00 and set an “underweight” rating on the stock in a research note on Friday, April 12th. Finally, Piper Sandler restated a “neutral” rating and issued a $65.00 target price (down from $81.00) on shares of Roku in a research note on Friday. Five analysts have rated the stock with a sell rating, nine have given a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $83.57.

Roku Stock Down 8.9 %

ROKU stock traded down $5.58 during mid-day trading on Friday, hitting $57.23. The company had a trading volume of 9,978,484 shares, compared to its average volume of 5,702,598. The company has a market capitalization of $8.21 billion, a price-to-earnings ratio of -11.56 and a beta of 1.66. Roku has a 12-month low of $51.62 and a 12-month high of $108.84. The company has a 50-day moving average price of $63.11 and a 200 day moving average price of $78.59.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, April 25th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.64) by $0.29. The business had revenue of $881.50 million for the quarter, compared to analysts’ expectations of $843.54 million. Roku had a negative net margin of 20.36% and a negative return on equity of 29.21%. The business’s quarterly revenue was up 19.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($1.38) EPS. As a group, analysts expect that Roku will post -2.12 EPS for the current year.

Insider Transactions at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the sale, the chief executive officer now owns 141,221 shares in the company, valued at $13,930,039.44. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, insider Charles Collier sold 12,277 shares of the company’s stock in a transaction dated Thursday, February 22nd. The shares were sold at an average price of $65.06, for a total transaction of $798,741.62. Following the completion of the transaction, the insider now owns 4,292 shares in the company, valued at approximately $279,237.52. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction that occurred on Monday, February 12th. The shares were sold at an average price of $98.64, for a total value of $2,466,000.00. Following the completion of the transaction, the chief executive officer now owns 141,221 shares in the company, valued at approximately $13,930,039.44. The disclosure for this sale can be found here. Insiders have sold 54,545 shares of company stock worth $4,364,035 over the last 90 days. 13.63% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roku

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in shares of Roku by 3.3% during the 4th quarter. Vanguard Group Inc. now owns 11,853,947 shares of the company’s stock valued at $1,086,533,000 after buying an additional 380,409 shares during the period. FMR LLC lifted its holdings in Roku by 85.9% during the 3rd quarter. FMR LLC now owns 9,441,349 shares of the company’s stock worth $666,465,000 after buying an additional 4,363,754 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in Roku by 24.7% during the 1st quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 7,349,067 shares of the company’s stock worth $478,939,000 after buying an additional 1,457,925 shares in the last quarter. Wellington Management Group LLP lifted its holdings in Roku by 34.6% during the 3rd quarter. Wellington Management Group LLP now owns 2,543,081 shares of the company’s stock worth $179,516,000 after buying an additional 653,940 shares in the last quarter. Finally, Norges Bank acquired a new stake in Roku during the 4th quarter worth approximately $90,386,000. 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.