25,592 Shares of Roku, Inc. $ROKU Acquired by BG Investment Services LLC

Key Points

• BG Investment Services acquired 25,592 Roku shares worth approximately $3.9 million during the third quarter. Institutional investors collectively own 86.3% of Roku.
• Roku reported quarterly revenue of $1.35 billion, up 21.9% year over year, and earnings of $1.08 per share, beating analyst expectations of $0.61.
• Roku shares opened at $158.58, near their 52-week high, while analysts maintained a consensus “Hold” rating with an average price target of $156.17; insiders have sold about $18.2 million in stock over the past 90 days.

BG Investment Services LLC purchased a new stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) during the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 25,592 shares of the company's stock, valued at approximately $3,897,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in ROKU. Arrowstreet Capital Limited Partnership increased its holdings in Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock worth $192,868,000 after buying an additional 1,419,772 shares during the last quarter. Renaissance Technologies LLC boosted its stake in Roku by 22.8% in the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock valued at $148,090,000 after acquiring an additional 290,200 shares during the last quarter. HBK Investments L P bought a new position in shares of Roku during the 2nd quarter valued at approximately $163,604,000. Bank of America Corp DE grew its position in shares of Roku by 5.5% during the 1st quarter. Bank of America Corp DE now owns 1,082,755 shares of the company's stock valued at $102,450,000 after acquiring an additional 56,893 shares during the period. Finally, Janus Henderson Group PLC grew its position in shares of Roku by 1,320.4% during the 1st quarter. Janus Henderson Group PLC now owns 834,619 shares of the company's stock valued at $78,967,000 after acquiring an additional 775,861 shares during the period. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Price Performance

ROKU opened at $158.58 on Friday. The business has a 50 day simple moving average of $155.25 and a two-hundred day simple moving average of $139.43. The firm has a market capitalization of $23.54 billion, a price-to-earnings ratio of 67.77 and a beta of 2.05. Roku, Inc. has a one year low of $78.53 and a one year high of $160.22.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. During the same period in the previous year, the firm earned $0.07 EPS. The company's quarterly revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts expect that Roku, Inc. will post 2.97 EPS for the current fiscal year.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: A report that the U.S. Department of Justice could soon approve the Roku/Fox deal reduced the transaction’s regulatory uncertainty and narrowed the deal spread, potentially supporting Roku’s strategic and financial outlook. Roku/Fox deal spread narrows on report DOJ could soon approve deal
• Positive Sentiment: Roku is emphasizing interoperability, measurement and frequency controls as connected-TV advertising attracts more traditional television budgets. Better data integration and advertiser accountability could support growth in Roku’s advertising platform. Roku Bets on Interoperability as CTV Moves From Reach to Accountability
• Neutral Sentiment: Roku’s latest software update was described as a free device upgrade, while its Pro Series LX OLED televisions became available through Amazon. These developments may improve customer engagement and product visibility, but their near-term effect on financial results is unclear. Roku's latest update is like a free upgrade for your device Roku's Pro Series LX OLED TVs Are Now Available On Amazon
• Negative Sentiment: SBS Law announced an opportunity for Roku investors to participate in a fraud investigation. The announcement does not establish wrongdoing, but investigations can increase litigation costs, create reputational concerns and pressure the stock, particularly while Roku trades at an elevated valuation. ROKU Investors Have Opportunity to Join Roku, Inc. Fraud Investigation with SBS Law

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 20,538 shares of the firm's stock in a transaction that occurred on Monday, October 5th. The stock was sold at an average price of $151.63, for a total value of $3,114,176.94. Following the completion of the transaction, the insider owned 22,700 shares in the company, valued at $3,442,001. This trade represents a 47.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 554 shares of the stock in a transaction on Thursday, October 1st. The stock was sold at an average price of $152.21, for a total value of $84,324.34. Following the completion of the transaction, the chief accounting officer owned 7,568 shares of the company's stock, valued at approximately $1,151,925.28. This trade represents a 6.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 119,285 shares of company stock worth $18,224,865. Insiders own 13.45% of the company's stock.

Analyst Upgrades and Downgrades

ROKU has been the subject of several recent research reports. UBS Group lifted their price objective on Roku from $126.00 to $172.00 and gave the stock a "neutral" rating in a report on Friday, August 7th. Wells Fargo & Company restated an "equal weight" rating and issued a $165.00 price objective (down from $167.00) on shares of Roku in a research report on Friday, August 14th. Fox Advisors set a $157.00 target price on shares of Roku in a research report on Friday, July 17th. Guggenheim cut Roku from a "buy" rating to a "neutral" rating and upped their price objective for the stock from $145.00 to $160.00 in a report on Friday, August 7th. Finally, Zacks Research raised Roku from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have issued a Hold rating to the stock. Based on data from MarketBeat, Roku currently has an average rating of "Hold" and a consensus target price of $156.17.

Roku Company Profile

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.

Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.