Contravisory Investment Management Inc. Acquires New Holdings in Roku, Inc. $ROKU

Key Points

• Contravisory Investment Management acquired 8,569 Roku shares worth approximately $1.18 million during the second quarter. Institutional investors collectively own 86.3% of the company.
• Roku reported strong quarterly results, with revenue up 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.
• Analyst sentiment remains mixed, with nine Buy ratings and 18 Holds producing an average “Hold” rating and a $155.75 price target. Insiders have sold 162,452 shares worth about $21.8 million over the past three months.

Contravisory Investment Management Inc. bought a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund bought 8,569 shares of the company's stock, valued at approximately $1,184,000.

A number of other large investors have also added to or reduced their stakes in ROKU. Empowered Funds LLC grew its position in shares of Roku by 18.6% in the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock worth $232,000 after buying an additional 515 shares during the last quarter. Focus Partners Wealth acquired a new stake in Roku in the first quarter valued at approximately $229,000. EverSource Wealth Advisors LLC boosted its stake in Roku by 145.4% in the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock valued at $123,000 after acquiring an additional 826 shares in the last quarter. First Trust Advisors LP grew its holdings in Roku by 231.0% in the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock worth $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in Roku in the second quarter worth $326,000. 86.30% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several analysts have recently commented on ROKU shares. KeyCorp lowered Roku from an "overweight" rating to a "sector weight" rating in a report on Monday, June 15th. Pivotal Research restated a "buy" rating and set a $160.00 target price (up from $140.00) on shares of Roku in a research note on Friday, May 1st. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $160.00 target price (up from $150.00) on shares of Roku in a research report on Tuesday, June 16th. Oppenheimer cut Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Finally, Rosenblatt Securities raised their price target on Roku from $150.00 to $160.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. Nine investment analysts have rated the stock with a Buy rating and eighteen have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $155.75.

Insider Activity

In other Roku news, insider Charles Collier sold 20,538 shares of the firm's stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $145.93, for a total transaction of $2,997,110.34. Following the completion of the transaction, the insider directly owned 15,200 shares of the company's stock, valued at approximately $2,218,136. This trade represents a 57.47% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 transaction of $292,500.00. Following the sale, the director owned 9,629 shares of the company's stock, valued at approximately $1,408,241.25. The trade was a 17.20% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over 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 News Summary

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

Roku Price Performance

Shares of ROKU stock opened at $153.11 on Monday. The firm has a market capitalization of $22.57 billion, a price-to-earnings ratio of 65.43 and a beta of 2.01. The business has a fifty day moving average of $138.39 and a 200 day moving average of $116.38. Roku, Inc. has a 1 year low of $78.53 and a 1 year high of $153.54.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.47. The business had revenue of $1.35 billion for the quarter, compared to the consensus estimate of $1.30 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%.The company's quarterly 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. As a group, equities research analysts expect that Roku, Inc. will post 2.41 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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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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