Moran Wealth Management LLC Buys Shares of 31,600 Roku, Inc. $ROKU

Key Points

• Moran Wealth Management opened a new position in Roku during the first quarter, buying 31,600 shares valued at about $2.99 million.
• Roku continues to draw significant institutional interest, with hedge funds and other investors owning 86.3% of the stock and several firms recently adding to their stakes.
• Analyst sentiment is mixed but cautiously positive: the stock has an average Hold rating with an average target price of $153.71, while recent quarters showed stronger-than-expected earnings and revenue growth.

Moran Wealth Management LLC purchased a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 31,600 shares of the company's stock, valued at approximately $2,990,000.

Several other hedge funds have also recently modified their holdings of the business. Elevation Point Wealth Partners LLC bought a new stake in Roku in the 1st quarter worth about $914,000. Keybank National Association OH bought a new position in Roku during the 1st quarter valued at about $365,000. Root Financial Partners LLC boosted its holdings in shares of Roku by 255.8% during the 1st quarter. Root Financial Partners LLC now owns 708 shares of the company's stock valued at $67,000 after acquiring an additional 509 shares during the last quarter. Bayban boosted its holdings in shares of Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company's stock valued at $26,000 after acquiring an additional 260 shares during the last quarter. Finally, 3Chopt Investment Partners LLC grew its stake in shares of Roku by 5.0% in the first quarter. 3Chopt Investment Partners LLC now owns 3,780 shares of the company's stock worth $358,000 after acquiring an additional 181 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Price Performance

NASDAQ ROKU opened at $142.43 on Monday. The company has a 50-day moving average price of $128.23 and a 200-day moving average price of $110.32. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $148.88. The firm has a market capitalization of $21.00 billion, a P/E ratio of 107.09 and a beta of 2.01.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. The company had revenue of $1.25 billion for 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%. The firm's revenue was up 22.4% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.19) earnings per share. As a group, equities research analysts anticipate that Roku, Inc. will post 2.41 EPS for the current year.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku is benefiting from a reported $22 billion all-stock takeover agreement with Fox, which could imply a substantial strategic valuation for the company and highlights the importance of Roku’s streaming platform and advertising assets.
• Positive Sentiment: Roku announced a new show focused on the greatest American female athletes, a sign it continues to expand content offerings and attract more viewing engagement. Article Title
• Neutral Sentiment: Roku remains one of the more closely watched stocks on market news and screening sites, keeping attention high as investors assess the Fox deal and the company’s next move. Article Title
• Neutral Sentiment: Analysts currently have a consensus “Hold” rating on Roku, suggesting Wall Street sees meaningful upside potential but is still cautious on valuation and execution. Article Title
• Neutral Sentiment: Roku settled a Florida child-data case and pledged a privacy overhaul, which removes a legal overhang but also signals additional operational and compliance work ahead. Article Title
• Negative Sentiment: Recent insider selling by a Roku CAO and director may weigh on sentiment, even though the transactions were disclosed as part of pre-arranged 10b5-1 plans. Article Title
• Negative Sentiment: A shareholder law firm has launched an investigation into whether Roku is getting a fair price in the Fox transaction, which could add uncertainty and legal noise around the deal. Article Title

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on ROKU shares. Rosenblatt Securities boosted their price objective on shares of Roku from $150.00 to $160.00 and gave the company a "buy" rating in a report on Tuesday, June 16th. 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. Needham & Company LLC lifted their target price on shares of Roku from $140.00 to $170.00 and gave the stock a "buy" rating in a research report on Monday, June 15th. KeyCorp lowered shares of Roku from an "overweight" rating to a "sector weight" rating in a research note on Monday, June 15th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Roku in a report on Friday, May 15th. Eleven research analysts have rated the stock with a Buy rating and sixteen have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $153.71.

Insiders Place Their Bets

In other news, insider Charles Collier sold 205,821 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the sale, the insider owned 11,131 shares of the company's stock, valued at $1,168,755. The trade was a 94.87% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 75,000 shares of the company's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $128.79, for a total value of $9,659,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 713,020 shares of company stock worth $81,860,846. Company insiders own 13.45% of the company's stock.

About Roku

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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