Roku (NASDAQ:ROKU) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research downgraded shares of Roku (NASDAQ:ROKU) from a buy rating to a hold rating in a research report report published on Friday, Zacks.com reports.

According to Zacks, “Roku, Inc. is involved in creating streaming platform for delivering entertainment to the television. The Company’s products primarily includes Roku 4, Roku 3, Roku 2, Roku 1, Roku Streaming Stick and accessories such as cables, remote controls, power adapters and headphones. It operates primarily in the United States, Canada, the United Kingdom, the Republic of Ireland, Mexico and France. Roku, Inc. is based in SARATOGA, United States. “

A number of other research firms also recently commented on ROKU. Vertical Group upgraded shares of Roku from a mixed rating to a positive rating in a research note on Wednesday. CIBC increased their price target on Roku from $79.00 to $120.00 and gave the company an outperform rating in a research report on Thursday. Rosenblatt Securities raised Roku from a neutral rating to a buy rating and increased their price objective for the company from $77.00 to $134.00 in a report on Thursday. BidaskClub cut shares of Roku from a buy rating to a hold rating in a research note on Thursday, August 1st. Finally, Morgan Stanley increased their price target on shares of Roku from $46.00 to $70.00 and gave the company an equal weight rating in a research note on Friday, May 10th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and eleven have assigned a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $101.31.

ROKU traded up $3.29 during trading hours on Friday, hitting $125.32. 14,514,520 shares of the company’s stock were exchanged, compared to its average volume of 8,409,639. Roku has a 1-year low of $26.30 and a 1-year high of $128.20. The firm has a 50-day moving average price of $102.57. The company has a market capitalization of $11.45 billion, a PE ratio of -1,566.50 and a beta of 2.04.

Roku (NASDAQ:ROKU) last posted its quarterly earnings data on Wednesday, August 7th. The company reported ($0.08) EPS for the quarter, topping the Zacks’ consensus estimate of ($0.22) by $0.14. Roku had a negative net margin of 2.41% and a negative return on equity of 7.91%. The company had revenue of $250.10 million during the quarter, compared to the consensus estimate of $223.36 million. Roku’s quarterly revenue was up 59.5% on a year-over-year basis. As a group, equities analysts predict that Roku will post -0.57 EPS for the current fiscal year.

In other news, SVP Stephen H. Kay sold 32,000 shares of the firm’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $81.77, for a total transaction of $2,616,640.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alan S. Henricks sold 6,000 shares of the firm’s stock in a transaction dated Thursday, May 23rd. The stock was sold at an average price of $90.00, for a total transaction of $540,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 671,733 shares of company stock valued at $67,177,042 in the last ninety days. Insiders own 22.70% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in the stock. PNC Financial Services Group Inc. raised its stake in Roku by 100.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 400 shares of the company’s stock worth $25,000 after purchasing an additional 200 shares in the last quarter. CWM LLC acquired a new stake in Roku in the 1st quarter worth about $32,000. James Investment Research Inc. acquired a new stake in Roku in the 1st quarter worth about $32,000. Wealthcare Advisory Partners LLC raised its stake in Roku by 1,000.0% in the 1st quarter. Wealthcare Advisory Partners LLC now owns 550 shares of the company’s stock worth $35,000 after purchasing an additional 500 shares in the last quarter. Finally, Mascoma Wealth Management LLC acquired a new stake in Roku in the 1st quarter worth about $42,000. 50.27% of the stock is owned by institutional investors and hedge funds.

Roku Company Profile

Roku, Inc operates a TV streaming platform. The company operates in two segments, Platform and Player. Its platform allows users to discover and access various movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2018, the company had 27.1 million active accounts.

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