Maytus Capital Management LLC Makes New $4.77 Million Investment in Roku, Inc. $ROKU

Key Points

• Maytus Capital Management opened a new position in Roku during the fourth quarter, buying 44,000 shares worth about $4.77 million.
• The biggest catalyst for Roku is the reported $22 billion Fox acquisition, which values Roku at roughly $160 per share and has drawn investor attention.
• Sentiment is mixed as some analysts raised targets to the $160-$175 range, while others downgraded the stock and lawyers began probing whether the proposed deal is fair to shareholders.

Maytus Capital Management LLC purchased a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 44,000 shares of the company's stock, valued at approximately $4,774,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Blue Trust Inc. raised its holdings in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company's stock worth $25,000 after buying an additional 204 shares during the last quarter. Aventura Private Wealth LLC purchased a new position in shares of Roku in the fourth quarter worth $26,000. WPG Advisers LLC purchased a new position in shares of Roku in the fourth quarter worth $31,000. Rakuten Securities Inc. raised its holdings in shares of Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company's stock worth $39,000 after buying an additional 158 shares during the last quarter. Finally, National Bank of Canada FI purchased a new position in shares of Roku in the third quarter worth $51,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox agreed to acquire Roku (ROKU) for about $22 billion, valuing each share at roughly $160 in cash and stock; the deal confirms a strong strategic premium versus where the stock traded before the announcement. Fox to buy Roku in $22 billion deal
• Positive Sentiment: Several analysts lifted or reiterated higher price targets on Roku (ROKU), including targets around $160 to $175, reinforcing the view that the company has become a premium takeover asset. Roku analyst forecasts
• Neutral Sentiment: Law firms have begun investigating whether the proposed Fox deal gives Roku (ROKU) shareholders a fair price, which adds headline risk but does not alter the transaction yet. Fairness investigation into Roku sale
• Negative Sentiment: Roku CFO Dan Jedda sold 7,000 shares under a pre-arranged trading plan, a routine insider sale that can still weigh on sentiment. Roku insider sale
• Negative Sentiment: Evercore downgraded Roku (ROKU) from strong-buy to hold, signaling that some analysts think much of the upside has already been captured after the acquisition news. Evercore downgrade of Roku

Insider Activity at Roku

In related news, insider Charles Collier sold 20,537 shares of the firm's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $124.94, for a total transaction of $2,565,892.78. Following the sale, the insider owned 15,200 shares in the company, valued at approximately $1,899,088. This trade represents a 57.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mustafa Ozgen sold 10,194 shares of Roku stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $144.00, for a total transaction of $1,467,936.00. Following the completion of the sale, the insider owned 19,185 shares in the company, valued at approximately $2,762,640. This trade represents a 34.70% decrease in their position. 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. Insiders have sold 713,194 shares of company stock valued at $81,763,589 in the last quarter. 13.45% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on ROKU. Susquehanna cut shares of Roku from a "positive" rating to a "neutral" rating and set a $160.00 target price for the company. in a report on Tuesday. Zacks Research cut shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 14th. Morgan Stanley raised their target price on shares of Roku from $150.00 to $170.00 and gave the stock an "overweight" rating in a report on Thursday, June 4th. UBS Group set a $160.00 target price on shares of Roku in a report on Monday. Finally, Seaport Research Partners set a $155.00 target price on shares of Roku in a report on Tuesday. Eleven equities research analysts have rated the stock with a Buy rating and sixteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Roku currently has an average rating of "Hold" and a consensus price target of $153.71.

Roku Stock Performance

ROKU stock opened at $137.95 on Wednesday. The firm has a market cap of $20.34 billion, a PE ratio of 103.72 and a beta of 2.06. The firm's fifty day moving average is $120.40 and its 200 day moving average is $106.95. Roku, Inc. has a one year low of $77.64 and a one year high of $148.88.

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

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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