Ardsley Advisory Partners LP Takes $2.68 Million Position in Roku, Inc. $ROKU

Key Points

• Ardsley Advisory Partners LP has acquired a new position in Roku, Inc., investing approximately $2.68 million for 38,000 shares in the first quarter.
• Institutional investors now hold 86.30% of Roku's stock, with significant increases in stakes from firms like Vanguard and Jacobs Levy.
• Several analysts have upgraded their ratings on Roku, with Wells Fargo raising its target price from $100 to $113 and multiple reports indicating a consensus rating of "Moderate Buy."

Ardsley Advisory Partners LP acquired a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 38,000 shares of the company's stock, valued at approximately $2,677,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Roku by 2.1% in the first quarter. Vanguard Group Inc. now owns 12,503,595 shares of the company's stock valued at $880,753,000 after purchasing an additional 254,504 shares during the period. Jacobs Levy Equity Management Inc. lifted its stake in shares of Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock valued at $96,402,000 after purchasing an additional 1,082,548 shares during the period. Two Sigma Investments LP lifted its stake in shares of Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock valued at $90,017,000 after purchasing an additional 726,077 shares during the period. Charles Schwab Investment Management Inc. lifted its stake in shares of Roku by 3.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,028,332 shares of the company's stock valued at $72,436,000 after purchasing an additional 37,465 shares during the period. Finally, Northern Trust Corp lifted its stake in shares of Roku by 6.0% in the first quarter. Northern Trust Corp now owns 755,762 shares of the company's stock valued at $53,236,000 after purchasing an additional 42,926 shares during the period. Institutional investors and hedge funds own 86.30% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on ROKU shares. Citigroup reiterated an "outperform" rating on shares of Roku in a research note on Monday, August 25th. Wells Fargo & Company lifted their target price on shares of Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Wall Street Zen upgraded shares of Roku from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Guggenheim lifted their target price on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Rosenblatt Securities lifted their target price on shares of Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a research report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.96.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 10,269 shares of the business's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $95.00, for a total transaction of $975,555.00. Following the transaction, the insider directly owned 200 shares of the company's stock, valued at approximately $19,000. The trade was a 98.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Dan Jedda sold 3,000 shares of the business's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $89.07, for a total transaction of $267,210.00. Following the transaction, the chief financial officer directly owned 73,132 shares in the company, valued at approximately $6,513,867.24. The trade was a 3.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 324,873 shares of company stock valued at $29,745,042 in the last ninety days. Corporate insiders own 13.98% of the company's stock.

Roku Stock Performance

Roku stock opened at $95.86 on Wednesday. Roku, Inc. has a 1 year low of $52.43 and a 1 year high of $104.96. The firm has a 50 day moving average price of $89.47 and a 200 day moving average price of $78.15. The company has a market cap of $14.12 billion, a price-to-earnings ratio of -228.24, a PEG ratio of 13.52 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The company had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. During the same period in the previous year, the firm earned ($0.18) earnings per share. Roku's revenue for the quarter was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Sell-side analysts predict that Roku, Inc. will post -0.3 EPS for the current year.

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.

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