Apella Capital LLC Takes $940,000 Position in Roku, Inc. $ROKU

Key Points

• Apella Capital initiated a roughly $940,000 position in Roku by purchasing 6,659 shares, while institutional investors collectively own 86.3% of the company.
• Roku reported strong quarterly results, with revenue up 21.9% year over year to $1.35 billion and earnings of $1.08 per share, well above analyst expectations. Advertising and subscriptions also grew 25% and 26%, respectively.
• Roku shares traded near a 12-month high, but analysts maintain a consensus “Hold” rating with a $155.75 price target; insiders have sold approximately $31.5 million of stock over the past 90 days.

Apella Capital LLC bought a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 6,659 shares of the company's stock, valued at approximately $940,000.

Several other hedge funds have also bought and sold shares of the company. Raleigh Capital Management Inc. grew its holdings in Roku by 6.5% during the first quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company's stock worth $144,000 after purchasing an additional 93 shares during the period. Apollon Wealth Management LLC lifted its position in shares of Roku by 1.5% in the fourth quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock valued at $700,000 after buying an additional 96 shares during the last quarter. Quantum Portfolio Management LLC boosted its stake in shares of Roku by 2.6% during the 1st quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company's stock worth $391,000 after acquiring an additional 105 shares during the period. HB Wealth Management LLC boosted its stake in shares of Roku by 3.7% during the 1st quarter. HB Wealth Management LLC now owns 3,447 shares of the company's stock worth $326,000 after acquiring an additional 122 shares during the period. Finally, Quarry LP boosted its stake in shares of Roku by 21.7% during the 4th quarter. Quarry LP now owns 689 shares of the company's stock worth $75,000 after acquiring an additional 123 shares during the period. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Trading Up 2.0%

Roku stock opened at $153.11 on Friday. The company has a market capitalization of $22.57 billion, a price-to-earnings ratio of 65.43 and a beta of 2.01. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $153.54. The stock's 50 day moving average is $138.39 and its 200-day moving average is $116.30.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.47. The business had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.30 billion. Roku had a return on equity of 13.95% and a net margin of 6.82%.The firm's revenue for the quarter was up 21.9% compared to the same quarter last year. During the same period last year, the firm posted $0.07 EPS. As a group, equities research analysts predict that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ROKU. Seaport Research Partners restated a "neutral" rating on shares of Roku in a research note on Friday. Susquehanna cut shares of Roku from a "positive" rating to a "neutral" rating and set a $160.00 price objective for the company. in a research report on Tuesday, June 16th. Robert W. Baird reaffirmed a "neutral" rating and set a $160.00 price objective on shares of Roku in a research report on Monday, June 15th. Oppenheimer downgraded shares of Roku from an "outperform" rating to a "market perform" rating in a report on Monday, June 15th. Finally, Benchmark increased their price objective on shares of Roku from $130.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Nine analysts have rated the stock with a Buy rating and eighteen have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $155.75.

Insider Activity

In other news, insider Charles Collier sold 20,538 shares of Roku stock in a transaction on Monday, July 6th. The stock was sold at an average price of $142.51, for a total transaction of $2,926,870.38. Following the completion of the sale, the insider owned 15,200 shares of the company's stock, valued at approximately $2,166,152. This trade represents a 57.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 7,000 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $122.56, for a total transaction of $857,920.00. Following the completion of the sale, the chief financial officer directly owned 71,115 shares of the company's stock, valued at approximately $8,715,854.40. The trade was a 8.96% 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. Over the last ninety days, insiders have sold 237,452 shares of company stock worth $31,470,382. Corporate insiders own 13.45% of the company's stock.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
• Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
• Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
• Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis

Roku 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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source