Assenagon Asset Management S.A. Sells 1,018,305 Shares of Roku, Inc. $ROKU

Key Points

• Assenagon Asset Management cut its Roku stake by 87.6%, selling 1,018,305 shares and retaining 143,746 shares valued at approximately $19.9 million. Despite the sale, institutional investors collectively own 86.3% of Roku.
• Roku reported a strong quarter, with revenue rising 21.9% year over year to $1.35 billion and earnings of $1.08 per share, beating analyst estimates of $1.30 billion and $0.61, respectively.
• Roku shares opened at $153.11, near their 52-week high of $153.54. Analysts remain cautious overall, with a consensus “Hold” rating and an average price target of $155.75.

Assenagon Asset Management S.A. cut its holdings in Roku, Inc. (NASDAQ:ROKU - Free Report) by 87.6% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 143,746 shares of the company's stock after selling 1,018,305 shares during the quarter. Assenagon Asset Management S.A. owned 0.10% of Roku worth $19,857,000 at the end of the most recent quarter.

Other hedge funds also recently bought and sold shares of the company. AQR Capital Management LLC increased its stake in Roku by 10.6% in the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company's stock worth $310,298,000 after buying an additional 274,024 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock worth $267,389,000 after buying an additional 168,214 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Roku by 229.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock valued at $192,868,000 after acquiring an additional 1,419,772 shares in the last quarter. Renaissance Technologies LLC raised its position in Roku by 22.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock valued at $148,090,000 after purchasing an additional 290,200 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its holdings in shares of Roku by 0.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company's stock valued at $163,786,000 after acquiring an additional 12,705 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Price Performance

Shares of ROKU stock opened at $153.11 on Monday. The firm has a 50 day moving average of $138.39 and a two-hundred day moving average of $116.38. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $153.54. The stock has a market capitalization of $22.57 billion, a PE ratio of 65.43 and a beta of 2.01.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The firm's quarterly revenue was up 21.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.07 earnings per share. Analysts expect that Roku, Inc. will post 2.41 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities analysts have commented on ROKU shares. Fox Advisors set a $157.00 target price on shares of Roku in a report on Friday, July 17th. Wedbush lowered Roku from an "outperform" rating to a "neutral" rating and set a $155.00 target price on the stock. in a report on Tuesday, June 16th. Pivotal Research reiterated a "buy" rating and set a $160.00 price target (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Citigroup lifted their price target on Roku from $120.00 to $157.00 and gave the stock a "neutral" rating in a research note on Friday, July 17th. Finally, Oppenheimer lowered Roku from an "outperform" rating to a "market perform" rating in a research report on Monday, June 15th. Nine analysts have rated the stock with a Buy rating and eighteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, Roku has an average rating of "Hold" and an average price target of $155.75.

More Roku News

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

Insider Buying and Selling at Roku

In related news, CAO Matthew C. Banks sold 552 shares of Roku stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total value of $80,730.00. Following the transaction, the chief accounting officer directly owned 6,619 shares in the company, valued at $968,028.75. This trade represents a 7.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $146.25, for a total value of $292,500.00. Following the completion of the sale, the director owned 9,629 shares in the company, valued at approximately $1,408,241.25. This trade represents a 17.20% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 162,452 shares of company stock valued at $21,811,132. 13.45% of the stock is owned by insiders.

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.

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.

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