Magnetar Financial LLC Buys Shares of 59,673 Roku, Inc. $ROKU

Key Points

• Magnetar Financial LLC purchased 59,673 shares of Roku, Inc., valued at approximately $4.2 million, signaling significant investor interest.
• Roku reported a 14.7% increase in quarterly revenue year-over-year, posting $1.11 billion, and beat earnings expectations with $0.07 EPS.
• Analysts have shown increased confidence in Roku, with multiple upgrades and target price increases ranging from $100 to $130, indicating a consensus rating of "Moderate Buy."

Magnetar Financial LLC bought a new stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) in the 1st quarter, according to its most recent filing with the SEC. The institutional investor bought 59,673 shares of the company's stock, valued at approximately $4,203,000.

A number of other hedge funds have also made changes to their positions in ROKU. Garde Capital Inc. acquired a new stake in Roku in the first quarter valued at $25,000. Golden State Wealth Management LLC grew its holdings in Roku by 125.4% during the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock worth $31,000 after acquiring an additional 247 shares in the last quarter. Princeton Global Asset Management LLC bought a new stake in shares of Roku in the 1st quarter worth about $35,000. First PREMIER Bank acquired a new stake in shares of Roku in the 1st quarter valued at about $35,000. Finally, Fourth Dimension Wealth LLC acquired a new stake in shares of Roku in the 4th quarter valued at about $41,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Price Performance

NASDAQ:ROKU opened at $96.56 on Friday. The firm has a market capitalization of $14.23 billion, a P/E ratio of -229.90, a P/E/G ratio of 13.65 and a beta of 2.05. The business has a 50 day simple moving average of $88.92 and a 200 day simple moving average of $78.15. Roku, Inc. has a 12-month low of $52.43 and a 12-month high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion for the quarter, compared to analysts' expectations of $1.07 billion. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm's quarterly revenue was up 14.7% compared to the same quarter last year. During the same period last year, the business posted ($0.18) earnings per share. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Research analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Analyst Ratings Changes

ROKU has been the subject of a number of research reports. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Bank of America increased their target price on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a report on Thursday, July 3rd. Benchmark reiterated a "buy" rating and issued a $130.00 target price on shares of Roku in a research report on Friday, May 2nd. Wells Fargo & Company boosted their price target on Roku from $100.00 to $113.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Susquehanna upped their price target on Roku from $85.00 to $110.00 and gave the company a "positive" rating in a research report on Friday, August 1st. Two analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $98.96.

Insiders Place Their Bets

In related news, CAO Matthew C. Banks sold 3,360 shares of the stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $85.05, for a total value of $285,768.00. Following the completion of the transaction, the chief accounting officer owned 5,195 shares in the company, valued at $441,834.75. This represents a 39.28% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $82.42, for a total transaction of $2,060,500.00. Following the completion of the transaction, the chief executive officer owned 16,441 shares of the company's stock, valued at $1,355,067.22. This trade represents a 60.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 325,502 shares of company stock worth $29,790,946. 13.98% of the stock is currently owned by corporate insiders.

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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