Dark Forest Capital Management LP Buys 70,107 Shares of Roku, Inc. $ROKU

Key Points

• Dark Forest Capital Management LP significantly increased its ownership in Roku, Inc. by 2,114.2% in Q1, acquiring an additional 70,107 shares to reach a total of 73,423 shares valued at approximately $5.17 million.
• Roku's latest quarterly earnings report showed earnings of $0.07 per share, beating estimates by $0.23, alongside a 14.7% increase in revenue year-over-year, totaling $1.11 billion.
• Analysts have generally expressed positive sentiment towards Roku, with two “Strong Buy” ratings and a consensus price target of $98.96, indicating a potential upside in its stock value.

Dark Forest Capital Management LP boosted its stake in Roku, Inc. (NASDAQ:ROKU - Free Report) by 2,114.2% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 73,423 shares of the company's stock after acquiring an additional 70,107 shares during the period. Dark Forest Capital Management LP owned 0.05% of Roku worth $5,172,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Berkshire Capital Holdings Inc. raised its holdings in shares of Roku by 1,413,400.0% during the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock worth $9,957,000 after purchasing an additional 141,340 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH bought a new position in Roku during the first quarter valued at about $6,026,000. Jacobs Levy Equity Management Inc. raised its holdings in shares of Roku by 505.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock worth $96,402,000 after purchasing an additional 1,082,548 shares in the last quarter. Atika Capital Management LLC bought a new position in shares of Roku in the first quarter valued at $5,086,000. Finally, Lecap Asset Management Ltd. purchased a new stake in shares of Roku during the first quarter valued at $511,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Performance

NASDAQ ROKU traded up $2.61 during trading hours on Wednesday, reaching $98.47. 3,610,321 shares of the company's stock were exchanged, compared to its average volume of 3,955,601. Roku, Inc. has a one year low of $52.43 and a one year high of $104.96. The company's 50-day moving average is $89.47 and its two-hundred day moving average is $78.15. The company has a market capitalization of $14.51 billion, a price-to-earnings ratio of -234.45, a price-to-earnings-growth ratio of 13.52 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping the consensus estimate of ($0.16) by $0.23. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The firm had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. During the same period in the previous year, the firm posted ($0.18) EPS. The company's revenue for the quarter was up 14.7% on a year-over-year basis. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts predict that Roku, Inc. will post -0.3 earnings per share for the current fiscal year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Friday, August 15th. The stock was sold at an average price of $89.07, for a total transaction of $267,210.00. Following the transaction, the chief financial officer owned 73,132 shares in the company, valued at $6,513,867.24. This trade represents a 3.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Matthew C. Banks sold 3,360 shares of the stock in a transaction on Monday, August 4th. The stock was sold at an average price of $85.05, for a total value of $285,768.00. Following the transaction, the chief accounting officer owned 5,195 shares in the company, valued at $441,834.75. The trade was a 39.28% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 324,873 shares of company stock valued at $29,745,042. 13.98% of the stock is owned by insiders.

Analyst Ratings Changes

Several research analysts have commented on the stock. Loop Capital upgraded shares of Roku from a "hold" rating to a "buy" rating and raised their target price for the stock from $80.00 to $100.00 in a report on Tuesday, June 17th. JMP Securities reissued a "market outperform" rating and issued a $110.00 price target on shares of Roku in a research report on Tuesday. Wedbush reaffirmed an "outperform" rating and set a $100.00 target price on shares of Roku in a research report on Monday, July 28th. Needham & Company LLC increased their target price on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Finally, Guggenheim raised their price objective on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $98.96.

Roku Company Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.