Coppell Advisory Solutions LLC Invests $47,000 in Roku, Inc. $ROKU

Key Points

• Coppell Advisory Solutions acquired 34,364 Roku shares worth approximately $47,000 during the second quarter. Institutional investors and hedge funds collectively own 86.3% of Roku’s stock.
• Roku reported stronger-than-expected quarterly results, with EPS of $1.08 versus the $0.61 consensus estimate and revenue of $1.35 billion, up 21.9% year over year.
• Analysts remain cautious, with Roku carrying a consensus “Hold” rating and an average price target of $156.17. Recent insider sales were conducted under pre-arranged plans primarily to cover tax obligations on vested equity awards.

Coppell Advisory Solutions LLC bought a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 34,364 shares of the company's stock, valued at approximately $47,000.

Several other hedge funds have also added to or reduced their stakes in the company. Bayban grew its holdings in Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company's stock valued at $26,000 after buying an additional 260 shares in the last quarter. Safe Harbor Fiduciary LLC acquired a new stake in shares of Roku during the fourth quarter worth $31,000. Elevation Wealth Partners LLC lifted its holdings in shares of Roku by 208.7% during the second quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock worth $44,000 after buying an additional 215 shares in the last quarter. Osbon Capital Management LLC bought a new stake in shares of Roku in the fourth quarter valued at about $45,000. Finally, Rakuten Securities Inc. grew its stake in shares of Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock valued at $39,000 after acquiring an additional 158 shares in the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the stock. William Blair cut shares of Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Wells Fargo & Company restated an "equal weight" rating and set a $165.00 target price (down from $167.00) on shares of Roku in a research report on Friday, August 14th. Seaport Research Partners cut shares of Roku from a "buy" rating to a "neutral" rating in a report on Friday, August 7th. JPMorgan Chase & Co. began coverage on shares of Roku in a research report on Monday, August 24th. They issued a "neutral" rating and a $160.00 price target for the company. Finally, Citigroup boosted their price target on Roku from $120.00 to $157.00 and gave the company a "neutral" rating in a research note on Friday, July 17th. 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. Based on data from MarketBeat.com, Roku has a consensus rating of "Hold" and an average target price of $156.17.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Positive earnings revisions: Zacks said Roku has an improving earnings outlook and assigned the company a No. 1, “Strong Buy,” ranking. Upward EPS revisions can support investor confidence in future profitability. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Technical momentum improved: Roku recently moved above its 20-day moving average, a signal that short-term buying momentum may be strengthening and that the stock has found support. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: OLED expansion draws attention: Roku launched its Pro Series OLED televisions starting at $999. The move could give Roku greater influence over premium TV products and potentially create additional hardware and platform monetization opportunities. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Retail promotion: Best Buy is offering a $200 discount on a 75-inch Roku QLED 4K television. The promotion may increase product visibility and unit sales, although the discount could pressure hardware margins. Best Buy Roku QLED TV Promotion
• Negative Sentiment: Several insiders sold shares: Executives and a director collectively sold roughly 20,800 shares worth about $3.25 million. However, the transactions were made under pre-arranged Rule 10b5-1 plans, and most were specifically intended to cover tax withholding on vested equity awards. This reduces the bearish significance, though the cluster of sales could still weigh modestly on sentiment. Roku Insider Transaction Filing

Roku Trading Up 0.4%

ROKU stock opened at $158.31 on Friday. The stock has a market capitalization of $23.50 billion, a P/E ratio of 67.65 and a beta of 2.05. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $159.89. The firm has a 50-day moving average price of $148.16 and a 200-day moving average price of $124.48.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 earnings per share (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 period in the prior year, the company earned $0.07 EPS. The firm's quarterly revenue was up 21.9% compared to the same quarter last year. As a group, equities analysts predict that Roku, Inc. will post 2.85 EPS for the current fiscal year.

Insider Activity

In other news, insider Charles Collier sold 7,067 shares of Roku stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $156.86, for a total value of $1,108,529.62. Following the completion of the sale, the insider owned 22,700 shares in the company, valued at $3,560,722. The trade was a 23.74% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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. Also, insider Gilbert Fuchsberg sold 4,824 shares of the business's stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $750,807.36. Following the transaction, the insider owned 40,168 shares in the company, valued at $6,251,747.52. The trade was a 10.72% 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 90 days, insiders sold 145,773 shares of company stock worth $20,575,950. 13.45% of the stock is owned by insiders.

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.

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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