Highland Capital Management LLC Has $7.65 Million Stake in Roku, Inc. $ROKU

Key Points

• Highland Capital trimmed its Roku stake by 12% in Q4 to 70,499 shares, worth about $7.65 million, and institutions now own roughly 86.3% of the stock.
• Roku beat Q1 estimates with $0.57 EPS (vs. $0.34 expected) and $1.25B revenue (up 22.4%), reporting record free cash flow, while launching a low‑cost $3/month service ("Howdy") aimed at boosting ARPU and subscriptions.
• Significant insider selling occurred recently: the CFO sold 15,000 shares and insiders disposed of 630,182 shares last quarter (~$66.9M), though corporate insiders still hold about 13.98% of the company.

Highland Capital Management LLC reduced its holdings in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 12.0% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 70,499 shares of the company's stock after selling 9,602 shares during the quarter. Highland Capital Management LLC's holdings in Roku were worth $7,648,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the business. PKS Advisory Services LLC bought a new position in shares of Roku during the 4th quarter worth approximately $215,000. Ascent Wealth Partners LLC increased its position in shares of Roku by 16.6% during the 4th quarter. Ascent Wealth Partners LLC now owns 2,335 shares of the company's stock worth $253,000 after purchasing an additional 333 shares during the last quarter. Truist Financial Corp increased its position in shares of Roku by 49.3% during the 4th quarter. Truist Financial Corp now owns 13,953 shares of the company's stock worth $1,514,000 after purchasing an additional 4,610 shares during the last quarter. Strs Ohio increased its position in shares of Roku by 216.1% during the 4th quarter. Strs Ohio now owns 95,087 shares of the company's stock worth $10,316,000 after purchasing an additional 65,005 shares during the last quarter. Finally, Oppenheimer Asset Management Inc. acquired a new position in shares of Roku during the 4th quarter worth approximately $573,000. 86.30% of the stock is owned by institutional investors.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q1 earnings beat — Roku beat top- and bottom-line estimates; platform revenue surged and free cash flow hit a record high on strong ad and subscription growth, driving the stock higher. ROKU Shares Rise 6% on Q1 Earnings Beat, Revenues and EPS Up Y/Y
• Positive Sentiment: Product/monetization push — Roku’s new low-cost streaming service “Howdy” ($3/month) expands subscription options and could boost ARPU and churn economics over time. Here’s Why Howdy, Roku’s Low-Cost Streaming Service, Is Worth Your $3/Month
• Neutral Sentiment: Investor attention and momentum — multiple outlets and Zacks note elevated investor interest and favorable momentum/style scores; this can amplify moves but also increase short-term volatility. Roku, Inc. (ROKU) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Valuation focus — recent strong returns have prompted fresh valuation analysis; higher multiples after the rally mean future upside may depend on sustained revenue/AD growth. Assessing Roku (ROKU) Valuation After A Strong Run In Recent Returns
• Negative Sentiment: Analyst note may cap near-term upside — Citigroup raised its price target to $120 but maintained a "neutral" rating; the PT sits below the current market level, signaling limited upside from here if the analyst view holds. Citigroup Raises Roku Price Target to $120 (Neutral)

Insiders Place Their Bets

In other news, CFO Dan Jedda sold 15,000 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $94.23, for a total transaction of $1,413,450.00. Following the completion of the transaction, the chief financial officer directly owned 85,115 shares of the company's stock, valued at approximately $8,020,386.45. This represents a 14.98% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total value of $310,602.50. Following the transaction, the insider directly owned 60,456 shares of the company's stock, valued at approximately $5,777,779.92. This trade represents a 5.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 630,182 shares of company stock valued at $66,865,773. Corporate insiders own 13.98% of the company's stock.

Roku Stock Up 2.0%

Roku stock opened at $126.02 on Tuesday. Roku, Inc. has a 52-week low of $58.77 and a 52-week high of $127.90. The company's 50 day moving average is $100.40 and its two-hundred day moving average is $100.88. The firm has a market cap of $18.58 billion, a PE ratio of 94.75 and a beta of 2.04.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $0.57 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 7.68%. The company had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the prior year, the firm posted ($0.19) EPS. The company's quarterly revenue was up 22.4% compared to the same quarter last year. On average, equities research analysts anticipate that Roku, Inc. will post 2.24 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Wedbush upped their price objective on Roku from $140.00 to $155.00 and gave the company an "outperform" rating in a research note on Friday. Robert W. Baird upped their target price on Roku from $120.00 to $130.00 and gave the company an "outperform" rating in a research report on Friday, April 17th. Bank of America upped their price target on shares of Roku from $115.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, January 12th. Benchmark boosted their price target on Roku from $130.00 to $160.00 and gave the stock a "buy" rating in a report on Friday. Finally, Evercore reissued an "outperform" rating and issued a $150.00 price target on shares of Roku in a research note on Friday, February 13th. Twenty-one research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $142.17.

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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