Brevan Howard Capital Management LP Sells 24,478 Shares of Roku, Inc. $ROKU

Key Points

• Brevan Howard cut its Roku stake by 37.3%, selling 24,478 shares and retaining 41,112 shares worth about $4.12 million after the third quarter.
• Roku posted a strong quarter with EPS of $0.53 vs. $0.28 expected and revenue of $1.39 billion (up 16.1% YoY), and analysts have an average price target of $125.40 (consensus: Moderate Buy).
• Insiders have sold heavily

Brevan Howard Capital Management LP lessened its stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 37.3% in the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 41,112 shares of the company's stock after selling 24,478 shares during the period. Brevan Howard Capital Management LP's holdings in Roku were worth $4,117,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Empowered Funds LLC increased its stake in shares of Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock worth $232,000 after purchasing an additional 515 shares during the last quarter. Focus Partners Wealth purchased a new stake in Roku in the first quarter worth $229,000. Campbell & CO Investment Adviser LLC bought a new stake in shares of Roku in the second quarter valued at $256,000. Allworth Financial LP raised its stake in shares of Roku by 196.4% in the second quarter. Allworth Financial LP now owns 2,134 shares of the company's stock valued at $188,000 after buying an additional 1,414 shares during the period. Finally, PNC Financial Services Group Inc. lifted its position in shares of Roku by 23.3% during the 2nd quarter. PNC Financial Services Group Inc. now owns 3,893 shares of the company's stock valued at $342,000 after buying an additional 736 shares during the last quarter. 86.30% of the stock is owned by institutional investors.

Roku Trading Down 3.3%

Shares of Roku stock opened at $91.65 on Monday. Roku, Inc. has a 12-month low of $52.43 and a 12-month high of $116.66. The company has a market cap of $13.51 billion, a price-to-earnings ratio of 160.79 and a beta of 1.98. The company's 50-day moving average price is $98.04 and its 200-day moving average price is $99.76.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating the consensus estimate of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The company had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.35 billion. During the same quarter in the previous year, the company earned ($0.24) earnings per share. Roku's revenue for the quarter was up 16.1% on a year-over-year basis. On average, sell-side analysts predict that Roku, Inc. will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In related news, Director Neil D. Hunt sold 2,000 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $96.48, for a total value of $192,960.00. Following the sale, the director owned 7,782 shares in the company, valued at approximately $750,807.36. This trade represents a 20.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of Roku stock in a transaction on Monday, January 12th. The shares were sold at an average price of $109.61, for a total value of $8,220,750.00. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 198,124 shares of company stock valued at $20,020,428. Corporate insiders own 13.98% of the company's stock.

Analyst Upgrades and Downgrades

ROKU has been the subject of several recent research reports. Pivotal Research lifted their price objective on Roku from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, February 16th. Evercore reiterated an "outperform" rating and set a $150.00 target price on shares of Roku in a research report on Friday, February 13th. Arete Research set a $132.00 target price on shares of Roku and gave the stock a "buy" rating in a research note on Monday, January 5th. Citigroup reissued a "market outperform" rating on shares of Roku in a research report on Monday, March 2nd. Finally, UBS Group reaffirmed a "neutral" rating and issued a $110.00 price objective on shares of Roku in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $125.40.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s recent operational wins and bullish analyst notes helped drive a run-up into March — analysts have raised targets and coverage remains largely positive, supporting longer‑term growth expectations. Read More.
• Positive Sentiment: Product and engagement initiatives (new on‑platform game “Roklue” and improved Live TV search) aim to boost time‑spent and ad monetization, which can support platform revenue growth. Read More.
• Positive Sentiment: Content deals: Roku secured exclusive streaming rights to a new X Games League, which can help drive unique live content and viewer engagement on the platform. Read More.
• Positive Sentiment: Retail promotions and steep discounts on Roku TVs and projectors are widespread this month — such device promotions can expand the user base and ad reach if they translate into active accounts. Read More.
• Neutral Sentiment: Ad/measurement ecosystem update: Pixalate released DEFASED pre‑bid CTV blocklists (daily lists of apps delisted from app stores). This is an industry tool for buyers/sellers and could change ad targeting or inventory mix, but its direct impact on Roku revenue is unclear today. Read More.
• Negative Sentiment: Insider sale headline: CEO Anthony Wood’s trust sold 50,000 shares (filed as a March 10 transaction, average ~$99.68). Even if pre‑planned under a 10b5‑1, the disclosure can prompt near‑term selling pressure and headline-driven volatility. Read More.
• Negative Sentiment: Heavy historical insider selling: multiple senior insiders have only sold (no purchases) over recent months, a datapoint investors often view as a negative signal for near‑term sentiment. Read More.

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.

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