Why this matters: Seven analysts cut ROKU to neutral or lower on June 16. The stock fell 2.1% that day. Options traders responded by piling into calls — the put/call ratio dropped to its lowest level in six weeks.
Six firms downgraded Roku in a single session. JP Morgan, Piper Sandler, Susquehanna, Evercore ISI, Wedbush, and Wolfe Research all moved to neutral-equivalent ratings. Loop Capital also downgraded, raising its target to $155 simultaneously. The consensus is now firmly "hold," with 16 hold ratings against 9 buys.
Targets cluster around $155–$160. Evercore cut the deepest — from $185 to $160. Needham held its Buy and $170 target, the lone bullish voice in the session.
The downgrades followed the June 11 Q2 earnings print, which sent the stock up 22.8% in a single day. Analysts are essentially saying the post-earnings rally priced in the good news.
The options market disagreed with the analysts. The put/call ratio fell to 0.93 on June 16 — 2.3 standard deviations below its 20-day mean of 1.10. That's aggressive call buying by any measure. The 52-week range on the PCR runs from 0.67 to 1.44, so 0.93 is well toward the bullish end.
Shorts have been unwinding since earnings. Short interest stood at roughly 10.7 million shares on June 8. By June 16 it had fallen to 8.1 million — a drop of 24% in one week to 6.2% of the free float. The borrow market remains loose. Availability sits at 952% — meaning the lending pool holds roughly ten shares available for every one currently borrowed. There is no squeeze pressure.
Cost to borrow is rising from a low base. It jumped 83% over the past week to 0.65%. That's still a cheap borrow in absolute terms, but the direction is worth watching.
CEO Anthony Wood sold 25,000 shares at $130 on June 12 for $3.25 million. CFO Dan Jedda followed on June 15, selling 7,000 shares at $143.87 for just over $1 million. Both sales came after the earnings spike. The 90-day net insider position is a net buy of roughly 104,000 shares — largely from equity awards — but the recent cash sales from the top two executives are the more meaningful signal.
FMR (Fidelity) added 3.3 million shares in its most recent filing, the largest institutional change in the top-holder list.
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