Convergence Investment Partners LLC Buys 22,640 Shares of Roku, Inc. $ROKU

Key Points

• Convergence Investment Partners LLC increased its Roku stake by 91% in the fourth quarter, buying 22,640 additional shares and bringing its total holding to 47,527 shares worth about $5.16 million.
• Roku reported a strong quarter, with EPS of $0.57 versus the $0.34 estimate and revenue of $1.25 billion that rose 22.4% year over year, showing continued growth momentum.
• Sentiment around Roku remains broadly positive: several analysts raised price targets after earnings, and Jefferies said the company could beat full-year guidance thanks to political advertising, World Cup viewership, and better ad fill rates.

Convergence Investment Partners LLC lifted its stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 91.0% in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 47,527 shares of the company's stock after acquiring an additional 22,640 shares during the quarter. Roku comprises approximately 1.0% of Convergence Investment Partners LLC's holdings, making the stock its 21st largest position. Convergence Investment Partners LLC's holdings in Roku were worth $5,156,000 as of its most recent SEC filing.

Several other large investors also recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in shares of Roku by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company's stock worth $1,301,557,000 after acquiring an additional 322,858 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Roku by 275.5% during the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock worth $258,897,000 after acquiring an additional 1,897,407 shares in the last quarter. Holocene Advisors LP boosted its stake in shares of Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after acquiring an additional 1,285,585 shares in the last quarter. Westfield Capital Management Co. LP boosted its stake in shares of Roku by 0.4% during the 3rd quarter. Westfield Capital Management Co. LP now owns 1,102,488 shares of the company's stock worth $110,392,000 after acquiring an additional 4,781 shares in the last quarter. Finally, Duquesne Family Office LLC boosted its stake in shares of Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock worth $96,723,000 after acquiring an additional 606,900 shares in the last quarter. Institutional investors own 86.30% of the company's stock.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Jefferies said Roku has a credible path to beat its full-year guidance, citing political advertising, higher World Cup viewership, and improving ad fill rates. The firm sees upside to about 25% year-over-year platform revenue growth in fiscal 2026, above Roku’s current guidance of roughly 21%. Article Title
• Positive Sentiment: Roku’s latest earnings beat expectations, with EPS of $0.57 versus the $0.34 estimate and revenue of $1.25 billion topping forecasts. Revenue also rose 22.4% year over year, reinforcing the view that the business is still growing strongly.
• Positive Sentiment: Analyst sentiment remains favorable, with multiple firms raising price targets after earnings and the broader consensus rating still sitting at Moderate Buy.
• Neutral Sentiment: Roku was also highlighted in “trending stock” coverage from Zacks, which mainly suggests increased investor interest rather than a clear new fundamental catalyst. Article Title
• Negative Sentiment: CEO Anthony Wood sold 75,000 shares in a pre-arranged Rule 10b5-1 transaction, which can weigh on sentiment even though the sale was planned in advance. Article Title

Roku Stock Down 1.5%

Shares of NASDAQ:ROKU opened at $124.02 on Friday. The business has a 50 day moving average price of $106.50 and a 200 day moving average price of $102.74. Roku, Inc. has a twelve month low of $67.67 and a twelve month high of $131.39. The company has a market cap of $18.28 billion, a price-to-earnings ratio of 93.25 and a beta of 2.04.

Roku (NASDAQ:ROKU - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.64% and a net margin of 4.06%.The firm had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter in the prior year, the company earned ($0.19) EPS. The firm's revenue for the quarter was up 22.4% compared to the same quarter last year. Analysts anticipate that Roku, Inc. will post 2.41 EPS for the current year.

Analyst Ratings Changes

ROKU has been the subject of several recent analyst reports. Zacks Research downgraded Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Piper Sandler upped their price target on Roku from $140.00 to $148.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Stifel Nicolaus set a $160.00 price target on Roku in a research note on Monday, March 2nd. KeyCorp upped their price target on Roku from $140.00 to $150.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Finally, Guggenheim increased their target price on Roku from $130.00 to $140.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $143.42.

Insider Activity

In other Roku news, CAO Matthew C. Banks sold 725 shares of the company's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $125.52, for a total value of $91,002.00. Following the completion of the transaction, the chief accounting officer owned 6,222 shares of the company's stock, valued at $780,985.44. This represents a 10.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 75,000 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $128.79, for a total value of $9,659,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 688,038 shares of company stock worth $76,076,295 over the last 90 days. Company insiders own 13.45% of the company's stock.

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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