Driehaus Capital Management LLC Acquires New Holdings in Roku, Inc. $ROKU

Key Points

• Driehaus Capital Management LLC acquired a new position in Roku, Inc., purchasing 465,936 shares valued at approximately $32.8 million, making it about 0.32% of the company.
• Insider selling was notable, with CEO Anthony J. Wood selling 25,000 shares at an average price of $89.64, resulting in a 67.65% decrease in his ownership stake.
• Wall Street analysts are optimistic about Roku’s future, with multiple firms raising their price targets, and the average targeted price now stands at $98.96.

Driehaus Capital Management LLC bought a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm bought 465,936 shares of the company's stock, valued at approximately $32,821,000. Driehaus Capital Management LLC owned about 0.32% of Roku at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in ROKU. Garde Capital Inc. purchased a new position in shares of Roku in the 1st quarter worth $25,000. Golden State Wealth Management LLC increased its position in Roku by 125.4% during the first quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after acquiring an additional 247 shares during the last quarter. Princeton Global Asset Management LLC bought a new position in Roku in the first quarter valued at about $35,000. First PREMIER Bank purchased a new position in Roku in the first quarter worth about $35,000. Finally, Fourth Dimension Wealth LLC purchased a new position in Roku in the fourth quarter worth about $41,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $89.64, for a total value of $2,241,000.00. Following the transaction, the chief executive officer owned 11,953 shares of the company's stock, valued at approximately $1,071,466.92. The trade was a 67.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction on Monday, August 4th. The stock was sold at an average price of $85.05, for a total transaction of $285,768.00. Following the transaction, the chief accounting officer owned 5,195 shares of the company's stock, valued at approximately $441,834.75. This represents a 39.28% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 325,502 shares of company stock valued at $29,790,946 in the last 90 days. 13.98% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ROKU. Bank of America upped their price target on shares of Roku from $100.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, July 3rd. Citigroup reiterated an "outperform" rating on shares of Roku in a research report on Monday. Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and boosted their price objective for the company from $80.00 to $100.00 in a research report on Tuesday, June 17th. Wells Fargo & Company upped their price objective on Roku from $100.00 to $113.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. Finally, Guggenheim lifted their target price on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research report on Friday, August 1st. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $98.96.

Roku Stock Performance

ROKU opened at $97.54 on Friday. The stock has a market cap of $14.37 billion, a price-to-earnings ratio of -232.24, a price-to-earnings-growth ratio of 13.46 and a beta of 2.05. The firm's fifty day moving average is $88.61 and its 200 day moving average is $78.06. Roku, Inc. has a fifty-two week low of $52.43 and a fifty-two week high of $104.96.

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

Roku 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.

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