Azimuth Capital Investment Management LLC Purchases Shares of 145,768 Roku, Inc. $ROKU

Key Points

• Azimuth Capital Investment Management initiated a Roku position by purchasing 145,768 shares valued at approximately $20.1 million. Institutional investors collectively own 86.3% of Roku’s outstanding stock.
• Roku’s latest quarterly results exceeded expectations, with EPS of $1.08 versus the $0.61 consensus and revenue of $1.35 billion, up 21.9% year over year. Despite the earnings strength, analysts’ consensus rating remains Hold, with an average price target of $156.17.
• Insiders sold substantial holdings, including 20,538 shares sold by executive Charles Collier, while total insider sales over the quarter reached 145,773 shares worth about $20.6 million. The reported transactions were conducted under pre-arranged Rule 10b5-1 plans.

Azimuth Capital Investment Management LLC purchased a new position in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm purchased 145,768 shares of the company's stock, valued at approximately $20,136,000. Azimuth Capital Investment Management LLC owned 0.10% of Roku as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of ROKU. Bayban boosted its holdings in shares of Roku by 1,300.0% in the first quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after acquiring an additional 260 shares during the period. Safe Harbor Fiduciary LLC purchased a new stake in Roku during the 4th quarter worth about $31,000. Elevation Wealth Partners LLC boosted its stake in Roku by 208.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock worth $44,000 after purchasing an additional 215 shares during the period. Osbon Capital Management LLC bought a new position in Roku in the 4th quarter worth about $45,000. Finally, Rakuten Securities Inc. grew its holdings in Roku by 55.6% during the 2nd quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock valued at $39,000 after buying an additional 158 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on ROKU. Susquehanna downgraded shares of Roku from a "positive" rating to a "neutral" rating and set a $160.00 price target on the stock. in a report on Tuesday, June 16th. Wells Fargo & Company reaffirmed an "equal weight" rating and set a $165.00 price objective (down from $167.00) on shares of Roku in a research note on Friday, August 14th. Evercore lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Wedbush cut shares of Roku from an "outperform" rating to a "neutral" rating and set a $155.00 target price on the stock. in a research note on Tuesday, June 16th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $160.00 price target on shares of Roku in a report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $156.17.

More Roku News

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

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 20,538 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $145.93, for a total transaction of $2,997,110.34. Following the sale, the insider owned 15,200 shares in the company, valued at $2,218,136. This trade represents a 57.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony Wood sold 25,000 shares of the company's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $130.00, for a total value of $3,250,000.00. 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. Insiders have sold 145,773 shares of company stock valued at $20,575,950 over the last quarter. Insiders own 13.45% of the company's stock.

Roku Price Performance

Shares of ROKU opened at $155.59 on Friday. Roku, Inc. has a 1-year low of $78.53 and a 1-year high of $159.89. The company has a market capitalization of $23.09 billion, a P/E ratio of 66.49 and a beta of 2.05. The firm's 50 day simple moving average is $148.57 and its 200 day simple moving average is $124.70.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 EPS for the quarter, topping 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 during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the previous year, the company earned $0.07 EPS. The business's quarterly revenue was up 21.9% compared to the same quarter last year. On average, equities analysts anticipate that Roku, Inc. will post 2.85 earnings per share for the current year.

About Roku

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.

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