Graham Capital Management L.P. Trims Holdings in Roku, Inc. $ROKU

Key Points

• Graham Capital Management L.P. significantly reduced its holdings in Roku, Inc. by 77.2% in the first quarter, leaving them with 10,661 shares after selling 36,143 shares.
• Roku reported a 14.7% revenue increase year-over-year to $1.11 billion and beat earnings expectations with an EPS of $0.07 for the last quarter.
• Insider sales were significant, with Charles Collier selling over 10,000 shares, indicating a potential decrease in confidence among company executives.

Graham Capital Management L.P. trimmed its position in Roku, Inc. (NASDAQ:ROKU - Free Report) by 77.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 10,661 shares of the company's stock after selling 36,143 shares during the period. Graham Capital Management L.P.'s holdings in Roku were worth $751,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Garde Capital Inc. purchased a new position in Roku in the 1st quarter valued at about $25,000. Golden State Wealth Management LLC lifted its holdings in Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after purchasing an additional 247 shares in the last quarter. Princeton Global Asset Management LLC purchased a new position in shares of Roku during the 1st quarter worth about $35,000. First PREMIER Bank purchased a new position in shares of Roku during the 1st quarter worth about $35,000. Finally, Fourth Dimension Wealth LLC purchased a new position in shares of Roku during the 4th quarter worth about $41,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Stock Performance

NASDAQ ROKU opened at $97.15 on Friday. 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 price is $89.98 and its 200 day moving average price is $78.28. The firm has a market capitalization of $14.31 billion, a price-to-earnings ratio of -231.31, a PEG ratio of 13.78 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.11 billion during the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter last year, the company earned ($0.18) earnings per share. Roku'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. Sell-side analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Activity

In other Roku news, insider Charles Collier sold 10,269 shares of the stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $99.14, for a total value of $1,018,068.66. Following the completion of the sale, the insider owned 200 shares of the company's stock, valued at $19,828. This trade represents a 98.09% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Matthew C. Banks sold 2,180 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The shares were sold at an average price of $97.85, for a total transaction of $213,313.00. Following the completion of the sale, the chief accounting officer directly owned 5,355 shares of the company's stock, valued at $523,986.75. This trade represents a 28.93% decrease in their position. The disclosure for this sale can be found here. Insiders sold 343,588 shares of company stock worth $31,759,978 over the last three months. Insiders own 13.98% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ROKU. Guggenheim increased 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. KeyCorp increased their price objective on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Bank of America increased their price objective on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. Pivotal Research increased their price objective on shares of Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Finally, JPMorgan Chase & Co. increased their price objective on shares of Roku from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $98.96.

About Roku

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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