Absolute Gestao de Investimentos Ltda. Acquires Shares of 61,000 Roku, Inc. $ROKU

Key Points

• Absolute Gestao de Investimentos Ltda. acquired 61,000 Roku shares worth approximately $8.4 million, making Roku about 0.8% of its portfolio. Institutional investors and hedge funds collectively own 86.3% of Roku.
• Roku reported stronger-than-expected quarterly results, with EPS of $1.08 versus the $0.61 consensus estimate and revenue of $1.35 billion, up 21.9% year over year.
• Despite several buy ratings, analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $156.17. Roku shares recently traded near their 52-week high, while insiders have sold approximately $20.6 million of stock over the past quarter.

Absolute Gestao de Investimentos Ltda. bought a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The firm bought 61,000 shares of the company's stock, valued at approximately $8,427,000. Roku makes up approximately 0.8% of Absolute Gestao de Investimentos Ltda.'s investment portfolio, making the stock its 16th biggest position.

Other institutional investors and hedge funds have also made changes to their positions in the company. Bayban increased its stake in shares of Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after acquiring an additional 260 shares during the last quarter. Safe Harbor Fiduciary LLC purchased a new stake in shares of Roku in the 4th quarter valued at approximately $31,000. Elevation Wealth Partners LLC grew its stake in shares of Roku by 208.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock valued at $44,000 after buying an additional 215 shares during the period. Osbon Capital Management LLC acquired a new stake in shares of Roku during the 4th quarter worth approximately $45,000. Finally, Rakuten Securities Inc. increased its holdings in shares of Roku by 55.6% during the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock worth $39,000 after buying an additional 158 shares during the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on ROKU shares. Rosenblatt Securities reaffirmed a "buy" rating and issued a $160.00 price target on shares of Roku in a research note on Monday, August 10th. Needham & Company LLC reissued a "buy" rating on shares of Roku in a research report on Friday, August 7th. Robert W. Baird restated a "neutral" rating and issued a $160.00 price objective on shares of Roku in a report on Monday, June 15th. JPMorgan Chase & Co. began coverage on shares of Roku in a research report on Monday, August 24th. They set a "neutral" rating and a $160.00 price target for the company. Finally, William Blair downgraded shares of Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $156.17.

Roku News Summary

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

Roku Price Performance

Shares of ROKU opened at $155.59 on Monday. Roku, Inc. has a fifty-two week low of $78.53 and a fifty-two week high of $159.89. The firm's 50 day moving average price is $148.57 and its 200 day moving average price is $124.95. The company has a market cap of $23.09 billion, a P/E ratio of 66.49 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 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 during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter last year, the company posted $0.07 EPS. The firm's revenue was up 21.9% compared to the same quarter last year. Research analysts forecast that Roku, Inc. will post 2.85 earnings per share for the current year.

Insider Activity at Roku

In related news, insider Charles Collier sold 7,067 shares of the firm's stock in a transaction that occurred on Wednesday, September 2nd. The shares were sold at an average price of $156.86, for a total value of $1,108,529.62. Following the sale, the insider owned 22,700 shares of the company's stock, valued at $3,560,722. This trade represents a 23.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 Roku stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $750,807.36. Following the completion of the transaction, the insider owned 40,168 shares of the company's stock, valued at $6,251,747.52. This represents a 10.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 145,773 shares of company stock worth $20,575,950 over the last quarter. 13.45% of the stock is currently owned by insiders.

Roku Company Profile

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.

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.

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