Fortis Group Advisors LLC Takes Position in Roku, Inc. $ROKU

Key Points

• Fortis Group Advisors LLC initiated a new position in Roku, buying 21,058 shares worth about $2.29 million in the fourth quarter.
• Roku continues to attract heavy institutional interest, with hedge funds and asset managers making large additions; overall, 86.3% of the stock is held by institutional investors.
• Analysts turned more constructive after Roku’s latest earnings beat, with multiple firms raising price targets and the consensus view now at “Moderate Buy” with a target of $143.42.

Fortis Group Advisors LLC bought a new stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) during the 4th quarter, according to its most recent filing with the SEC. The fund bought 21,058 shares of the company's stock, valued at approximately $2,285,000.

Several other institutional investors have also made changes to their positions in ROKU. AQR Capital Management LLC boosted its position 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 valued at $258,897,000 after acquiring an additional 1,897,407 shares in the last quarter. Holocene Advisors LP lifted its holdings in Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after purchasing an additional 1,285,585 shares during the last quarter. Duquesne Family Office LLC lifted its holdings in Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock valued at $96,723,000 after purchasing an additional 606,900 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in Roku by 172.9% during the 4th quarter. Assenagon Asset Management S.A. now owns 931,653 shares of the company's stock valued at $101,075,000 after purchasing an additional 590,286 shares during the last quarter. Finally, Artisan Partners Limited Partnership bought a new position in Roku during the 3rd quarter valued at about $55,660,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Trading Up 3.0%

Shares of NASDAQ ROKU opened at $124.16 on Thursday. Roku, Inc. has a 1-year low of $67.67 and a 1-year high of $131.39. The company has a market cap of $18.30 billion, a PE ratio of 93.35 and a beta of 2.04. The company has a 50-day moving average of $107.90 and a two-hundred day moving average of $103.27.

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, topping analysts' consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the previous year, the firm posted ($0.19) earnings per share. The company's revenue was up 22.4% on a year-over-year basis. As a group, equities research analysts forecast that Roku, Inc. will post 2.41 earnings per share for the current year.

Analysts Set New Price Targets

Several brokerages recently issued reports on ROKU. Citigroup lifted their price target on shares of Roku from $100.00 to $120.00 and gave the company a "neutral" rating in a report on Monday, May 4th. Pivotal Research reissued a "buy" rating and set a $160.00 price target (up from $140.00) on shares of Roku in a report on Friday, May 1st. Piper Sandler lifted their price target on shares of Roku from $140.00 to $148.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Citizens Jmp lifted their price target on shares of Roku from $160.00 to $170.00 and gave the company a "market outperform" rating in a report on Friday, May 1st. Finally, Morgan Stanley reissued an "overweight" rating and set a $150.00 price target on shares of Roku in a report on Friday, May 1st. Twenty-one analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and a consensus target price of $143.42.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is expanding its content offerings, including new free channels and a dedicated “Creators” hub, which can improve engagement, boost ad inventory, and make the platform more attractive to viewers and advertisers.
• Positive Sentiment: Cineverse launched new subscription channels on The Roku Channel, signaling continued third-party partner growth and more monetization opportunities for Roku’s platform. Article Title
• Positive Sentiment: Zacks highlighted Roku as a strong momentum stock, reinforcing bullish investor sentiment around the shares. Article Title
• Positive Sentiment: Analyst updates and options activity have leaned constructive, with price-target increases and bullish trade ideas suggesting Wall Street sees upside remaining in Roku.
• Neutral Sentiment: Recent articles about setting up VPNs, integrating Roku with other devices, and troubleshooting older Roku hardware are mostly consumer-help content and are unlikely to materially affect the stock.
• Negative Sentiment: The CFO sold shares in a pre-arranged 10b5-1 plan, which can weigh slightly on sentiment even though it does not necessarily signal a change in outlook. Article Title
• Negative Sentiment: One article noted that a Roku and TCL software update may have made some flatscreens unusable, which could create minor reputational concerns if the issue is widespread.

Insider Activity at Roku

In other Roku news, insider Charles Collier sold 205,821 shares of the business's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total value of $21,611,205.00. Following the completion of the transaction, the insider directly owned 11,131 shares of the company's stock, valued at approximately $1,168,755. The trade was a 94.87% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 9,593 shares of the business's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the completion of the transaction, the insider directly owned 50,863 shares of the company's stock, valued at approximately $6,384,323.76. This represents a 15.87% decrease in their ownership of the stock. 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. In the last three months, insiders sold 692,038 shares of company stock valued at $76,667,575. Insiders own 13.45% of the company's stock.

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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