Gateway Investment Advisers LLC Has $2.01 Million Holdings in Roku, Inc. $ROKU

Key Points

• Gateway Investment Advisers LLC reduced its Roku stake by 31.5% in the fourth quarter, leaving it with 18,542 shares worth about $2.01 million.
• Insider selling has been notable: CFO Dan Jedda and insider Charles Collier both sold large blocks of shares, and insiders have sold a total of 663,038 shares over the last 90 days.
• Roku’s recent earnings beat expectations, posting $0.57 EPS versus the $0.34 consensus and $1.25 billion in revenue, while analysts remain mostly positive with a consensus Moderate Buy rating and a $142.17 average price target.

Gateway Investment Advisers LLC cut its position in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 31.5% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 18,542 shares of the company's stock after selling 8,534 shares during the quarter. Gateway Investment Advisers LLC's holdings in Roku were worth $2,012,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of the company. Apollon Wealth Management LLC increased its position in shares of Roku by 1.5% during the fourth quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock worth $700,000 after buying an additional 96 shares during the period. Cornerstone Wealth Management LLC grew its holdings in Roku by 3.8% in the third quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company's stock worth $273,000 after purchasing an additional 100 shares during the period. Thoroughbred Financial Services LLC grew its holdings in Roku by 1.0% in the third quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company's stock worth $995,000 after purchasing an additional 100 shares during the period. Aviance Capital Partners LLC grew its holdings in Roku by 2.6% in the third quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company's stock worth $418,000 after purchasing an additional 106 shares during the period. Finally, Lecap Asset Management Ltd. grew its holdings in Roku by 2.6% in the third quarter. Lecap Asset Management Ltd. now owns 4,905 shares of the company's stock worth $491,000 after purchasing an additional 124 shares during the period. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 15,000 shares of the firm's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $94.23, for a total value of $1,413,450.00. Following the transaction, the chief financial officer directly owned 85,115 shares of the company's stock, valued at approximately $8,020,386.45. This trade represents a 14.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charles Collier sold 205,821 shares of the firm's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the transaction, the insider directly owned 11,131 shares in the company, valued at $1,168,755. This trade represents a 94.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 663,038 shares of company stock valued at $70,956,545 over the last ninety days. 13.45% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Evercore restated an "outperform" rating and issued a $150.00 price target on shares of Roku in a report on Friday, February 13th. UBS Group restated an "outperform" rating and issued a $145.00 price target on shares of Roku in a report on Friday, May 1st. Zacks Research cut shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 14th. Pivotal Research restated a "buy" rating and issued a $160.00 price target (up from $140.00) on shares of Roku in a report on Friday, May 1st. Finally, Stifel Nicolaus set a $160.00 price target on shares of Roku in a report on Monday, March 2nd. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Roku has a consensus rating of "Moderate Buy" and an average price target of $142.17.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku said CFO and COO Dan Jedda will speak at two upcoming industry conferences on May 12 and May 13, which can help keep investor attention on the company and give management a platform to discuss strategy and growth. Roku Chief Financial Officer to Present at Upcoming Conferences
• Neutral Sentiment: Several insider sale reports were published this week, including stock sales by a director and other executives, but these filings are routine disclosures and do not necessarily signal a change in business fundamentals. Roku NASDAQ: ROKU Director Sells $244,220.00 in Stock
• Negative Sentiment: News reports alleged that Roku and TCL software updates have “bricked” some TVs, which could raise concerns about product quality, customer trust, and potential legal or repair costs if the claims gain traction. Lawsuit accuses Roku, TCL of 'bricking' TVs with defective software updates

Roku Trading Up 2.3%

Roku stock opened at $129.53 on Friday. Roku, Inc. has a 1-year low of $60.43 and a 1-year high of $130.72. The firm has a market capitalization of $19.10 billion, a price-to-earnings ratio of 97.39 and a beta of 2.04. The firm's fifty day moving average price is $102.76 and its two-hundred day moving average price is $101.52.

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

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.

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