Maven Securities LTD Makes New Investment in Roku, Inc. $ROKU

Key Points

• Maven Securities initiated a position in Roku during the second quarter, purchasing 36,998 shares valued at approximately $5.1 million. Institutional investors collectively own 86.3% of Roku’s stock.
• Analyst sentiment remains mixed, with Roku holding a consensus “Hold” rating and an average price target of $156.17. The company recently exceeded quarterly earnings and revenue expectations, with revenue rising 21.9% year over year.
• Roku shares opened at $155.34, near their 52-week high, but the DOJ’s expanded antitrust inquiry into Fox’s proposed acquisition has increased regulatory uncertainty and reportedly pressured the stock in after-hours trading.

Maven Securities LTD purchased a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 36,998 shares of the company's stock, valued at approximately $5,111,000.

Several other institutional investors and hedge funds have also recently made changes to their positions in the stock. Empowered Funds LLC grew its position in Roku by 18.6% in the first quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock worth $232,000 after acquiring an additional 515 shares in the last quarter. Focus Partners Wealth purchased a new stake in Roku during the first quarter valued at about $229,000. EverSource Wealth Advisors LLC raised its position in Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock valued at $123,000 after purchasing an additional 826 shares in the last quarter. First Trust Advisors LP lifted its stake in Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock worth $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. bought a new stake in Roku during the second quarter worth about $326,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

Insider Activity at Roku

In other news, SVP Christopher T. Handman sold 2,999 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $466,764.36. Following the completion of the transaction, the senior vice president directly owned 8,997 shares of the company's stock, valued at approximately $1,400,293.08. This represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Charles Collier sold 7,067 shares of the company's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $156.86, for a total transaction of $1,108,529.62. Following the transaction, the insider directly owned 22,700 shares of the company's stock, valued at approximately $3,560,722. This trade represents a 23.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 127,773 shares of company stock worth $18,442,050 over the last ninety days. Insiders own 13.45% of the company's stock.

Wall Street Analysts Forecast Growth

ROKU has been the topic of several recent research reports. Seaport Research Partners lowered Roku from a "buy" rating to a "neutral" rating in a research report on Friday, August 7th. JPMorgan Chase & Co. started coverage on Roku in a research report on Monday, August 24th. They issued a "neutral" rating and a $160.00 target price for the company. Morgan Stanley upped their target price on Roku from $150.00 to $170.00 and gave the stock an "overweight" rating in a research note on Thursday, June 4th. Oppenheimer cut shares of Roku from an "outperform" rating to a "market perform" rating in a research report on Monday, June 15th. Finally, Needham & Company LLC reissued a "buy" rating on shares of Roku in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have assigned a Hold rating to the stock. According to MarketBeat.com, Roku presently has a consensus rating of "Hold" and an average target price of $156.17.

Roku Price Performance

Shares of Roku stock opened at $155.34 on Wednesday. The business's 50 day simple moving average is $149.29 and its two-hundred day simple moving average is $125.88. The stock has a market capitalization of $23.06 billion, a P/E ratio of 66.38 and a beta of 2.05. Roku, Inc. has a one year low of $78.53 and a one year high of $159.89.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. Roku had a return on equity of 13.73% and a net margin of 6.82%.The firm had revenue of $1.35 billion during the quarter, compared to analyst estimates of $1.30 billion. During the same quarter in the prior year, the firm posted $0.07 earnings per share. The business's quarterly revenue was up 21.9% compared to the same quarter last year. Sell-side analysts expect that Roku, Inc. will post 2.85 earnings per share for the current fiscal year.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Coverage of Roku’s NFL-related announcement could support user engagement and streaming activity, although the financial impact was not quantified. Roku NFL announcement
• Neutral Sentiment: Consumer coverage highlighted discounts and product availability for Roku streaming sticks, smart TVs, and Roku-enabled projectors. These promotions may aid device adoption but are unlikely to materially change near-term revenue expectations. Roku Streaming Stick deal Roku smart TV coverage
• Neutral Sentiment: Roku’s products continued to receive favorable comparisons with competing streaming devices, but the reviews and buying guides do not represent a new corporate catalyst. Roku device comparison
• Negative Sentiment: The DOJ’s expanded antitrust inquiry into Fox’s proposed acquisition is the dominant stock catalyst. A second request increases regulatory scrutiny and could delay completion, raise transaction costs, require concessions, or threaten the deal’s terms. Reports specifically linked the development to weakness in ROKU shares during after-hours trading. Reuters DOJ Roku deal report ROKU after-hours reaction

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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