Norges Bank Buys Shares of 855,449 Roku, Inc. $ROKU

Key Points

• Norges Bank disclosed a new stake in Roku, buying 855,449 shares worth about $92.8 million in the fourth quarter, equal to roughly 0.58% of the company.
• Roku is seeing positive business momentum, including expansion of its free ad-supported streaming lineup and a new $25 bundle that pairs the Streaming Stick Plus with Fox One, both aimed at boosting engagement and device sales.
• Analysts remain constructive on the stock: several firms raised price targets, and Roku reported better-than-expected quarterly earnings and revenue, with revenue up 22.4% year over year.

Norges Bank bought a new stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 855,449 shares of the company's stock, valued at approximately $92,808,000. Norges Bank owned 0.58% of Roku at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Apollon Wealth Management LLC boosted its position in shares of Roku by 1.5% during the fourth quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock valued at $700,000 after buying an additional 96 shares during the period. Thoroughbred Financial Services LLC boosted its holdings in shares of Roku by 1.0% in the third quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company's stock valued at $995,000 after purchasing an additional 100 shares during the period. Swiss Life Asset Management Ltd boosted its holdings in shares of Roku by 2.2% in the fourth quarter. Swiss Life Asset Management Ltd now owns 5,969 shares of the company's stock valued at $648,000 after purchasing an additional 127 shares during the period. Larson Financial Group LLC boosted its holdings in shares of Roku by 32.1% in the third quarter. Larson Financial Group LLC now owns 556 shares of the company's stock valued at $56,000 after purchasing an additional 135 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of Roku by 3.8% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,664 shares of the company's stock valued at $398,000 after purchasing an additional 135 shares during the period. 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: Roku continues to expand its free ad-supported streaming lineup, adding new channels including Sports Illustrated and FIFA Plus, plus four more free channels in June. That supports engagement on The Roku Channel and could improve ad inventory and viewing time. Article Title
• Positive Sentiment: The company also launched a $25 bundle pairing the Streaming Stick Plus with Fox One, which may help drive device sales and keep Roku’s ecosystem competitive. Article Title
• Positive Sentiment: Roku has been benefiting from a bullish narrative around its growing household reach and stronger live-sports positioning, which investors may see as supportive of future ad and platform revenue. Article Title

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on ROKU. Guggenheim boosted their price target on Roku from $130.00 to $140.00 and gave the company a "buy" rating in a report on Friday, May 1st. Citizens Jmp reiterated a "market outperform" rating and issued a $170.00 price target on shares of Roku in a report on Thursday, May 28th. Stifel Nicolaus set a $160.00 price target on Roku in a report on Monday, March 2nd. Benchmark boosted their price target on Roku from $130.00 to $160.00 and gave the company a "buy" rating in a report on Friday, May 1st. Finally, Citigroup reiterated a "market outperform" rating on shares of Roku in a report on Thursday, May 28th. Twenty-two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and a consensus target price of $145.29.

Roku Stock Down 2.7%

Roku stock opened at $122.26 on Friday. The business has a fifty day moving average of $115.32 and a two-hundred day moving average of $105.15. The firm has a market cap of $18.02 billion, a P/E ratio of 91.93 and a beta of 2.06. Roku, Inc. has a twelve month low of $73.91 and a twelve month high of $133.46.

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

Insider Activity at Roku

In other Roku news, CAO Matthew C. Banks sold 546 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total transaction of $69,483.96. Following the completion of the sale, the chief accounting officer owned 7,725 shares in the company, valued at $983,083.50. This represents a 6.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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, SVP Christopher T. Handman sold 2,999 shares of the company's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $127.26, for a total value of $381,652.74. Following the sale, the senior vice president owned 5,998 shares of the company's stock, valued at approximately $763,305.48. This represents a 33.33% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 have sold 696,631 shares of company stock valued at $77,636,680 over the last 90 days. Insiders own 13.45% of the company's stock.

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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