Roku (NASDAQ:ROKU) Downgraded by Robert W. Baird to Hold

Robert W. Baird cut shares of Roku (NASDAQ:ROKU) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

ROKU has been the subject of a number of other reports. Wolfe Research downgraded Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday. Morgan Stanley lifted their target price on shares of Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Rosenblatt Securities boosted their target price on shares of Roku from $118.00 to $150.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Piper Sandler lowered shares of Roku from an “overweight” rating to a “neutral” rating and set a $160.00 price target on the stock. in a research note on Tuesday. Finally, Pivotal Research restated a “buy” rating and set a $160.00 price target (up from $140.00) on shares of Roku in a report on Friday, May 1st. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, Roku has an average rating of “Moderate Buy” and an average price target of $151.96.

Roku Stock Down 1.9%

NASDAQ:ROKU opened at $140.90 on Monday. The stock has a fifty day simple moving average of $119.60 and a 200 day simple moving average of $106.65. The firm has a market capitalization of $20.77 billion, a price-to-earnings ratio of 105.94 and a beta of 2.06. Roku has a 1-year low of $77.64 and a 1-year high of $148.88.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.34 by $0.23. The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. Roku had a return on equity of 7.64% and a net margin of 4.06%.The company’s revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.19) earnings per share. Equities analysts predict that Roku will post 2.41 earnings per share for the current year.

Insiders Place Their Bets

In other Roku news, Director Mai Fyfield sold 832 shares of the business’s stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $119.64, for a total value of $99,540.48. Following the sale, the director owned 5,389 shares in the company, valued at approximately $644,739.96. The trade was a 13.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Gilbert Fuchsberg sold 4,376 shares of Roku stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total transaction of $556,889.76. Following the completion of the sale, the insider owned 51,099 shares in the company, valued at $6,502,858.74. The trade was a 7.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 706,194 shares of company stock worth $80,756,499 in the last 90 days. Company insiders own 13.45% of the company’s stock.

Institutional Trading of Roku

Hedge funds and other institutional investors have recently bought and sold shares of the business. Blue Trust Inc. grew its position in shares of Roku by 680.0% during the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new stake in shares of Roku in the fourth quarter valued at approximately $26,000. Bayban raised its position in shares of Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after buying an additional 260 shares in the last quarter. WPG Advisers LLC bought a new stake in shares of Roku in the fourth quarter valued at approximately $31,000. Finally, Safe Harbor Fiduciary LLC acquired a new stake in Roku during the fourth quarter worth approximately $31,000. Institutional investors and hedge funds own 86.30% of the company’s stock.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox Corp. agreed to buy Roku for about $22 billion, valuing ROKU at $160 per share and signaling a major premium to pre-deal trading levels. Fox to buy streaming pioneer Roku in a $22 billion deal
• Positive Sentiment: Wall Street has started updating its outlook on Roku following the acquisition announcement, including a higher price target from Citizens JMP, reinforcing investor interest in the stock. Roku price target raised by Citizens JMP
• Positive Sentiment: Roku saw unusually large call-option buying, suggesting traders are positioning for continued upside or more deal-related volatility. Wall Street sets Roku stock price target amid $22B acquisition
• Neutral Sentiment: The acquisition is drawing legal scrutiny, with shareholder-law firms investigating whether Roku shareholders are getting a fair price, which may add headline risk but does not yet change the deal itself. Shareholder alert: investigation of Roku related to sale to Fox
• Neutral Sentiment: Coverage around the merger highlights strategic benefits for Fox’s streaming and advertising ambitions, but investor reaction appears mixed because the deal price may leave limited immediate upside beyond the offer value. Roku Stock Rises. Why $22 Billion Fox Sale May Disappoint.

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.