Friedenthal Financial Has $992,000 Position in Roku, Inc. $ROKU

Key Points

• Friedenthal Financial dramatically increased its Roku stake by 15,317.6% in Q1, ending with 10,484 shares valued at about $992,000.
• Roku’s latest earnings were stronger than expected, with EPS of $0.57 versus the $0.34 consensus and revenue of $1.25 billion, up 22.4% year over year.
• The stock is drawing attention from both analysts and takeover chatter: several firms recently downgraded or rated Roku Hold, while reports of a possible Fox acquisition and other media consolidation talk have helped keep investor interest high.

Friedenthal Financial boosted its stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 15,317.6% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,484 shares of the company's stock after acquiring an additional 10,416 shares during the period. Friedenthal Financial's holdings in Roku were worth $992,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Jefferies Financial Group Inc. acquired a new stake in Roku during the fourth quarter worth about $1,345,000. Holocene Advisors LP raised its position in shares of Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after buying an additional 1,285,585 shares in the last quarter. Crossmark Global Holdings Inc. acquired a new position in shares of Roku in the 3rd quarter valued at approximately $2,997,000. MH & Associates Securities Management Corp ADV bought a new stake in shares of Roku during the 4th quarter worth approximately $2,398,000. Finally, Magnetar Financial LLC bought a new stake in shares of Roku during the 3rd quarter worth approximately $5,466,000. Institutional investors own 86.30% of the company's stock.

Roku Trading Up 0.7%

NASDAQ:ROKU opened at $135.95 on Thursday. The stock has a market cap of $20.04 billion, a P/E ratio of 102.22 and a beta of 2.06. The stock's 50-day moving average is $124.73 and its 200-day moving average is $108.67. Roku, Inc. has a 1-year low of $78.53 and a 1-year high of $148.88.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, beating 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 business had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same quarter last year, the business earned ($0.19) EPS. The firm's quarterly revenue was up 22.4% on a year-over-year basis. As a group, equities analysts forecast that Roku, Inc. will post 2.41 EPS for the current year.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Multiple reports suggested Fox could be buying Roku for about $22 billion, which sparked investor interest because a deal like that would imply a major premium and could make Roku a much bigger player in streaming. Fox is buying Roku for $22 billion - here's what it means for your TV
• Positive Sentiment: Media consolidation commentary also highlighted Fox’s large investment in Roku, reinforcing the market’s view that Roku could be part of broader industry dealmaking. Media Consolidation in Its 'Middle Innings': Tom Ara
• Positive Sentiment: Jim Cramer’s discussion of Roku’s “big announcement” added to the attention around the stock, which can support momentum trading when sentiment is already strong. Jim Cramer Shares Thoughts On Roku’s (ROKU) Big Announcement
• Positive Sentiment: A Roku TV update reportedly brought a popular feature back to the home screen, a small but favorable product improvement that may help user engagement. A small Roku TV update brought a popular feature back to your home screen
• Neutral Sentiment: Zacks included Roku among broadcast and TV stocks to watch, noting the company benefits from higher content consumption and steady digital viewing, but also faces tough advertising competition. 4 Broadcast Radio & TV Stocks to Watch From a Challenging Industry
• Neutral Sentiment: Several articles focused on Roku alternatives, promotional pricing, and accessory deals, which are mostly consumer-interest pieces and unlikely to materially move the stock on their own. Want a Roku alternative? These are my 4 other favorite TV OS options, and I've tried them all
• Negative Sentiment: There were also reports that a recent YouTube TV update is causing unexpected problems and degraded performance on Roku devices, which could be a short-term headwind for user experience. It's not just you: YouTube TV update reportedly degrades performance on Roku devices

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Zacks Research cut shares of Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. UBS Group set a $160.00 target price on Roku in a research note on Monday, June 15th. Wedbush downgraded Roku from an "outperform" rating to a "neutral" rating and set a $155.00 target price on the stock. in a report on Tuesday, June 16th. Jefferies Financial Group lowered Roku from a "buy" rating to a "hold" rating and set a $160.00 price target on the stock. in a research note on Monday, June 15th. Finally, Fox Advisors set a $160.00 price target on Roku in a report on Tuesday, June 16th. Eleven equities research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $153.71.

Insider Activity

In other news, insider Mustafa Ozgen sold 10,194 shares of Roku stock in a transaction on Friday, June 12th. The shares were sold at an average price of $144.00, for a total transaction of $1,467,936.00. Following the transaction, the insider owned 19,185 shares in the company, valued at approximately $2,762,640. The trade was a 34.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 205,821 shares of the business's stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the sale, the insider directly owned 11,131 shares in the company, valued at approximately $1,168,755. This represents a 94.87% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 713,194 shares of company stock valued at $81,763,589. 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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