Katamaran Capital LLP Acquires Shares of 27,546 Roku, Inc. $ROKU

Key Points

• Katamaran Capital LLP opened a new position in Roku, buying 27,546 shares valued at about $2.99 million. The stake represents 2.3% of Katamaran’s holdings and is now its 20th largest position.
• Roku’s latest quarterly results beat expectations, with EPS of $0.57 versus $0.34 expected and revenue of $1.25 billion versus $1.20 billion expected. Revenue also rose 22.4% year over year, and analysts now forecast full-year EPS of 2.41.
• News flow around Roku was mixed: analysts largely remain constructive, with an average Moderate Buy rating and a $142.17 target, but there were also reports of insider selling and allegations that software updates bricked some TCL/Roku TVs, which could raise product and legal concerns.

Katamaran Capital LLP acquired a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The firm acquired 27,546 shares of the company's stock, valued at approximately $2,988,000. Roku comprises 2.3% of Katamaran Capital LLP's holdings, making the stock its 20th largest position.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Swiss Life Asset Management Ltd increased its stake in shares of Roku by 2.2% during the 4th quarter. Swiss Life Asset Management Ltd now owns 5,969 shares of the company's stock worth $648,000 after purchasing an additional 127 shares during the last quarter. Bensler LLC purchased a new stake in shares of Roku during the 4th quarter worth approximately $1,826,000. Crossmark Global Holdings Inc. increased its stake in shares of Roku by 11.4% during the 4th quarter. Crossmark Global Holdings Inc. now owns 33,347 shares of the company's stock worth $3,618,000 after purchasing an additional 3,418 shares during the last quarter. Kessler Investment Group LLC increased its stake in shares of Roku by 1.7% during the 4th quarter. Kessler Investment Group LLC now owns 116,444 shares of the company's stock worth $12,633,000 after purchasing an additional 1,917 shares during the last quarter. Finally, Maxi Investments CY Ltd purchased a new stake in shares of Roku during the 4th quarter worth approximately $1,953,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

Key Headlines Impacting 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 Stock Performance

ROKU opened at $129.53 on Monday. The company has a 50 day moving average of $102.76 and a 200 day moving average of $101.52. The company has a market cap of $19.10 billion, a PE ratio of 97.39 and a beta of 2.04. Roku, Inc. has a 12 month low of $60.43 and a 12 month high of $130.72.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The company reported $0.57 EPS for the quarter, topping the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion during the quarter, compared to the consensus estimate of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. Roku's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period last year, the firm earned ($0.19) EPS. Research analysts forecast that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Insider Activity

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 completion of the transaction, the chief financial officer directly owned 85,115 shares of the company's stock, valued at $8,020,386.45. This trade represents a 14.98% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Anthony J. Wood sold 50,000 shares of the firm's stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $99.68, for a total transaction of $4,984,000.00. The disclosure for this sale is available in the SEC filing. Insiders sold 663,038 shares of company stock valued at $70,956,545 in the last quarter. 13.45% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on ROKU shares. Zacks Research lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, April 14th. Needham & Company LLC raised their price target on shares of Roku from $110.00 to $140.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Wedbush raised their price target on shares of Roku from $140.00 to $155.00 and gave the stock an "outperform" rating in a research note on Friday, May 1st. Evercore reaffirmed an "outperform" rating and issued a $150.00 price objective on shares of Roku in a report on Friday, February 13th. Finally, Benchmark raised their price objective on shares of Roku from $130.00 to $160.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $142.17.

Roku 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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