Roku, Inc. $ROKU Holdings Lessened by Kestra Investment Management LLC

Kestra Investment Management LLC decreased its holdings in Roku, Inc. (NASDAQ:ROKU) by 25.6% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 11,203 shares of the company’s stock after selling 3,855 shares during the period. Kestra Investment Management LLC’s holdings in Roku were worth $1,706,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Signature Equity Partners LLC grew its position in Roku by 1,225.0% in the third quarter. Signature Equity Partners LLC now owns 212 shares of the company’s stock worth $32,000 after acquiring an additional 196 shares in the last quarter. CX Institutional increased its stake in Roku by 44.1% during the third quarter. CX Institutional now owns 281 shares of the company’s stock worth $43,000 after acquiring an additional 86 shares during the last quarter. Elevation Wealth Partners LLC raised its position in Roku by 208.7% during the second quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock valued at $44,000 after purchasing an additional 215 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Roku during the third quarter valued at approximately $46,000. Finally, Coppell Advisory Solutions LLC purchased a new stake in Roku during the second quarter valued at approximately $47,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: More free channels may support engagement. The Roku Channel added five free live-TV channels, giving viewers more content and potentially supporting audience and advertising growth. The Roku Channel just added five more free live TV channels
• Positive Sentiment: Holiday promotions could help device sales. Roku announced Black Friday discounts of more than 50% on select TVs, projectors, and streaming players, including devices starting at $19.99. The promotions may support seasonal sales, though discounts could also weigh on margins. Roku announces Black Friday deals
• Neutral Sentiment: Fox’s acquisition is complete, shifting attention to execution. Fox completed its reported $22 billion acquisition of Roku on November 6, after the DOJ said the transaction was not likely to harm competition. Investors will now watch streaming growth, cost savings, and regulatory commitments; benefits have yet to be demonstrated. Fox’s $22 billion Roku acquisition
• Neutral Sentiment: Fox is arranging acquisition financing. Fox is marketing about $8 billion of investment-grade bonds to repay a bridge loan tied to the deal. This is a financing step for Fox rather than a new Roku operating update, but investors may monitor its effect on the combined company’s financial flexibility. Fox launches bond sale to repay bridge loan
• Negative Sentiment: A popular aquarium screensaver is being removed. The change may disappoint some users, but it appears to be a limited product issue with no clear material effect on Roku’s financial outlook. A fan-favorite aquarium screen saver is leaving Roku

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on ROKU shares. Zacks Research raised Roku from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, August 11th. BMO Capital Markets raised Roku from a “market perform” rating to an “outperform” rating in a research report on Tuesday, November 3rd. Wells Fargo & Company lowered Roku from an “overweight” rating to an “equal weight” rating and decreased their price target for the company from $167.00 to $165.00 in a report on Friday, August 14th. Citigroup increased their price target on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a report on Friday, July 17th. Finally, Wedbush dropped coverage on Roku in a research report on Tuesday. They issued a “neutral” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and seventeen have given a Hold rating to the company. According to MarketBeat, Roku presently has an average rating of “Hold” and a consensus price target of $156.22.

Roku Stock Down 0.5%

Shares of ROKU stock opened at $159.65 on Wednesday. The firm has a market cap of $23.69 billion, a price-to-earnings ratio of 47.23 and a beta of 2.12. Roku, Inc. has a 52-week low of $78.53 and a 52-week high of $163.57. The company’s 50 day moving average is $155.43 and its 200 day moving average is $129.46.

Roku (NASDAQ:ROKU) last issued its quarterly earnings data on Monday, November 2nd. The company reported $1.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.65. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.41 billion. Roku had a return on equity of 18.65% and a net margin of 9.34%. The firm’s revenue for the quarter was up 24.1% compared to the same quarter last year. During the same quarter last year, the company earned $0.16 earnings per share. Analysts anticipate that Roku, Inc. will post 3.17 EPS for the current fiscal year.

Insiders Place Their Bets

In other Roku news, SVP Christopher T. Handman sold 2,999 shares of the firm’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $466,764.36. Following the completion of the sale, the senior vice president owned 8,997 shares of the company’s stock, valued at approximately $1,400,293.08. This trade represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 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. Also, insider Gilbert Fuchsberg sold 4,824 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $750,807.36. Following the sale, the insider owned 40,168 shares in the company, valued at $6,251,747.52. The trade was a 10.72% decrease in their position. 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. In the last ninety days, insiders sold 88,028 shares of company stock valued at $13,645,922. 13.45% of the stock is currently owned by company insiders.

Roku Company Profile

Roku, Inc. provides a streaming platform that connects viewers with television and other digital video content. Its products include streaming players and Roku-branded televisions, as well as the Roku operating system, which the company licenses to television manufacturers. Roku also operates a platform business that supports streaming services and advertisers. Its offerings include the Roku Channel, an ad-supported streaming service, and tools for distributing content and delivering advertising to viewers.