Readystate Asset Management LP Acquires New Position in Roku, Inc. $ROKU

Readystate Asset Management LP bought a new position in Roku, Inc. (NASDAQ:ROKU) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 161,958 shares of the company’s stock, valued at approximately $22,373,000.

A number of other institutional investors and hedge funds have also bought and sold shares of ROKU. AQR Capital Management LLC grew its stake in shares of Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after buying an additional 1,897,407 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in Roku by 229.5% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after acquiring an additional 1,419,772 shares during the period. Fred Alger Management LLC grew its position in Roku by 7,087.7% during the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after acquiring an additional 1,401,664 shares during the last quarter. Norges Bank purchased a new position in Roku in the 4th quarter worth approximately $92,808,000. Finally, Janus Henderson Group PLC lifted its position in Roku by 1,320.4% in the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company’s stock valued at $78,967,000 after purchasing an additional 775,861 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors.

Insider Buying and Selling at Roku

In other Roku news, insider Charles Collier sold 7,067 shares of the company’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $156.86, for a total transaction of $1,108,529.62. Following the transaction, the insider owned 22,700 shares in the company, valued at approximately $3,560,722. This represents a 23.74% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 Mustafa Ozgen sold 3,410 shares of the stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total value of $530,732.40. Following the completion of the transaction, the insider directly owned 25,569 shares of the company’s stock, valued at $3,979,559.16. This represents a 11.77% 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 90 days, insiders sold 145,773 shares of company stock worth $20,575,950. Insiders own 13.45% of the company’s stock.

Wall Street Analysts Forecast Growth

ROKU has been the topic of several recent analyst reports. Seaport Research Partners cut shares of Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Morgan Stanley boosted their price objective on shares of Roku from $150.00 to $170.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. Wolfe Research downgraded shares of Roku from an “outperform” rating to a “peer perform” rating in a research note on Tuesday, June 16th. Guggenheim cut Roku from a “buy” rating to a “neutral” rating and raised their target price for the stock from $145.00 to $160.00 in a research note on Friday, August 7th. Finally, Wedbush downgraded Roku from an “outperform” rating to a “neutral” rating and set a $155.00 price target on the stock. in a report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $156.17.

Roku Stock Performance

NASDAQ:ROKU opened at $155.59 on Monday. The company has a 50-day moving average price of $148.57 and a 200-day moving average price of $124.95. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $159.89. The stock has a market cap of $23.09 billion, a price-to-earnings ratio of 66.49 and a beta of 2.05.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The company had revenue of $1.35 billion for the quarter, compared to analysts’ expectations of $1.30 billion. During the same quarter in the previous year, the company earned $0.07 earnings per share. Roku’s quarterly revenue was up 21.9% on a year-over-year basis. Equities analysts forecast that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Improving earnings outlook: Zacks assigned Roku a No. 1 “Strong Buy” ranking, citing upward EPS revisions. The rating follows Roku’s latest quarterly results, which exceeded consensus estimates for both earnings and revenue, with revenue rising 21.9% year over year. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Short-term technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving near-term trading momentum and investor support. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: Premium hardware expansion: Roku’s Pro Series OLED televisions, starting at $999, could improve its position in higher-end TV hardware and provide additional opportunities to monetize its platform. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Platform activity: Pluto TV launched a major update on Roku TVs and players, while the Roku Streaming Stick Plus returned to its prior Amazon price. These developments may support engagement and device demand, but their direct impact on near-term revenue is unclear. Pluto TV Rolls Out an Update on Roku Devices
• Neutral Sentiment: Consumer support coverage: Articles describing simple Roku troubleshooting steps and retail discounts for Roku TVs may help customer experience and product sales, but are unlikely to materially affect valuation. Common Roku Problems
• Negative Sentiment: Concentrated insider selling: Executives and directors sold a combined 20,846 shares worth roughly $3.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, and most covered tax withholding on vested equity awards, reducing the bearish significance. Still, the volume of selling may weigh on sentiment, particularly with ROKU near its annual high. Roku Insider Selling

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.