Cadian Capital Management LP Makes New $87.63 Million Investment in Roku, Inc. (NASDAQ:ROKU)

Cadian Capital Management LP bought a new position in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 1,178,800 shares of the company's stock, valued at approximately $87,632,000. Roku accounts for approximately 5.0% of Cadian Capital Management LP's portfolio, making the stock its 8th largest holding. Cadian Capital Management LP owned approximately 0.81% of Roku at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the business. Franklin Resources Inc. lifted its stake in Roku by 14.5% during the third quarter. Franklin Resources Inc. now owns 82,170 shares of the company's stock valued at $6,275,000 after buying an additional 10,416 shares in the last quarter. Everence Capital Management Inc. purchased a new stake in shares of Roku in the 4th quarter valued at approximately $350,000. Oak Thistle LLC acquired a new position in Roku in the 4th quarter worth approximately $823,000. Avanza Fonder AB purchased a new position in Roku during the 4th quarter worth approximately $3,499,000. Finally, O Keefe Stevens Advisory Inc. raised its stake in Roku by 39.5% during the 4th quarter. O Keefe Stevens Advisory Inc. now owns 3,893 shares of the company's stock valued at $289,000 after purchasing an additional 1,102 shares during the period. 86.30% of the stock is currently owned by institutional investors.

Roku Price Performance

ROKU stock traded down $0.46 on Friday, reaching $60.90. 2,317,795 shares of the company were exchanged, compared to its average volume of 3,766,472. Roku, Inc. has a 12 month low of $48.33 and a 12 month high of $104.96. The firm has a market capitalization of $8.89 billion, a PE ratio of -68.43 and a beta of 2.06. The stock's fifty day moving average price is $66.88 and its 200 day moving average price is $74.69.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.08. Roku had a negative net margin of 3.15% and a negative return on equity of 5.34%. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter in the previous year, the company earned ($0.35) earnings per share. The business's revenue was up 15.8% compared to the same quarter last year. As a group, research analysts expect that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ROKU. Compass Point assumed coverage on Roku in a report on Sunday, March 23rd. They set a "buy" rating on the stock. Pivotal Research dropped their target price on Roku from $125.00 to $100.00 and set a "buy" rating on the stock in a report on Friday, May 2nd. Moffett Nathanson upgraded shares of Roku from a "sell" rating to a "neutral" rating and set a $70.00 price target for the company in a report on Tuesday, March 4th. Citizens Jmp upgraded shares of Roku to a "strong-buy" rating in a research note on Tuesday, January 21st. Finally, Bank of America started coverage on shares of Roku in a research note on Thursday, March 27th. They set a "buy" rating and a $100.00 target price for the company. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating, fifteen have assigned a buy rating and two have given a strong buy rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $87.93.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, February 10th. The stock was sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the transaction, the chief executive officer now owns 26,538 shares in the company, valued at $2,333,486.34. This trade represents a 48.51 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Dan Jedda sold 5,000 shares of the company's stock in a transaction on Friday, February 14th. The shares were sold at an average price of $100.40, for a total value of $502,000.00. Following the completion of the sale, the chief financial officer now owns 58,555 shares in the company, valued at $5,878,922. This trade represents a 7.87 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 72,111 shares of company stock worth $6,575,362 over the last quarter. Company insiders own 13.98% of the company's stock.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.