California State Teachers Retirement System Raises Stock Holdings in Roku, Inc. $ROKU

Key Points

• California State Teachers Retirement System dramatically increased its Roku stake by 13,741.7% in the second quarter, ending with 20.9 million shares valued at approximately $2.89 billion, or 14.09% of the company.
• Roku reported a strong quarter, with revenue up 21.9% year over year to $1.35 billion and EPS of $1.08, beating analysts’ expectations. However, Wall Street’s average rating remains “Hold,” with an average price target of $156.17.
• The proposed Fox acquisition offers potential valuation support, but regulatory and execution risks remain after the DOJ requested additional information; a law firm is also investigating whether the deal adequately protects shareholders.

California State Teachers Retirement System grew its position in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 13,741.7% in the second quarter, according to its most recent filing with the SEC. The fund owned 20,912,738 shares of the company's stock after acquiring an additional 20,761,653 shares during the quarter. California State Teachers Retirement System owned about 14.09% of Roku worth $2,888,886,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of ROKU. Empowered Funds LLC lifted its position in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after purchasing an additional 515 shares during the last quarter. Focus Partners Wealth bought a new stake in shares of Roku in the 1st quarter worth about $229,000. EverSource Wealth Advisors LLC increased its holdings in shares of Roku by 145.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock worth $123,000 after buying an additional 826 shares during the last quarter. First Trust Advisors LP raised its position in shares of Roku by 231.0% during the 2nd quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock valued at $6,221,000 after buying an additional 49,399 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new stake in shares of Roku during the 2nd quarter valued at about $326,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on ROKU shares. Morgan Stanley lifted their price target on Roku from $150.00 to $170.00 and gave the stock an "overweight" rating in a research report on Thursday, June 4th. Wolfe Research lowered Roku from an "outperform" rating to a "peer perform" rating in a research note on Tuesday, June 16th. Fox Advisors set a $157.00 target price on Roku in a report on Friday, July 17th. Wells Fargo & Company reiterated an "equal weight" rating and issued a $165.00 target price (down from $167.00) on shares of Roku in a report on Friday, August 14th. Finally, Jefferies Financial Group downgraded Roku from a "buy" rating to a "hold" rating and set a $160.00 target price on the stock. in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $156.17.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku’s proposed sale to Fox provides valuation support. Under the transaction terms, Roku shareholders would receive $96 in cash plus 0.9693 shares of Fox Class A stock for each Roku share. If completed, the deal would provide shareholders with a defined cash-and-stock consideration. Roku Investor Alert
• Positive Sentiment: International NFL expansion could increase engagement and advertising opportunities. Roku and the NFL are expanding NFL Zone within Roku Sports to Canada, Mexico and Brazil ahead of the 2026 season, potentially increasing viewing hours and platform monetization. Roku and NFL expand NFL Zone
• Positive Sentiment: New lower-priced OLED-style televisions may support hardware adoption. Roku launched an affordable home-theater television positioned as an alternative to premium OLED products, which could broaden its device ecosystem and create additional opportunities for platform and advertising revenue. Roku launches affordable OLED-style TVs
• Neutral Sentiment: Fox maintains that the deal remains on track. Fox COO John Nallen said the DOJ review was expected and that the acquisition is still targeted for completion in early 2027, although the timetable remains subject to regulatory approval. Fox says Roku deal remains on track
• Negative Sentiment: The DOJ has issued a second request for information. The expanded antitrust review extends the regulatory process and raises the possibility of delays, additional conditions or a failed transaction. This is the principal near-term overhang for ROKU shares. DOJ seeks more information on Fox-Roku deal
• Negative Sentiment: A law firm is investigating the proposed sale. Kahn Swick & Foti is examining whether Roku’s price and sale process adequately protect shareholders, adding potential litigation and execution risk. Investor investigation into Roku sale
• Negative Sentiment: Insider selling adds a modest cautionary signal. Charles Collier sold 20,538 shares worth approximately $3.2 million, reducing his holdings by 47.5%. The sale occurred under a pre-arranged Rule 10b5-1 plan, which makes it less indicative of a current bearish view. Roku insider transaction filing

Insider Activity

In related news, insider Charles Collier sold 20,538 shares of Roku stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $156.99, for a total transaction of $3,224,260.62. Following the completion of the sale, the insider owned 22,700 shares in the company, valued at $3,563,673. This trade represents a 47.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 3,410 shares of Roku stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $530,732.40. Following the sale, the insider owned 25,569 shares of the company's stock, valued at $3,979,559.16. The trade was a 11.77% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 112,285 shares of company stock valued at $16,848,834. Insiders own 13.45% of the company's stock.

Roku Stock Performance

Shares of NASDAQ ROKU opened at $154.12 on Friday. The business's 50 day moving average price is $149.77 and its 200-day moving average price is $126.78. Roku, Inc. has a fifty-two week low of $78.53 and a fifty-two week high of $159.89. The company has a market cap of $22.87 billion, a price-to-earnings ratio of 65.86 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. The company had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.Roku's revenue was up 21.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.07 EPS. Sell-side analysts predict that Roku, Inc. will post 2.85 earnings per share for the current year.

Roku Company Profile

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.

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