Readystate Asset Management LP Takes Position in Roku, Inc. $ROKU

Key Points

• Readystate Asset Management LP initiated a Roku position by purchasing 161,958 shares valued at approximately $22.4 million, while institutional investors collectively owned 86.3% of the company.
• Roku exceeded quarterly expectations, reporting $1.08 in EPS versus a $0.61 consensus estimate and $1.35 billion in revenue, up 21.9% year over year. Analysts’ average rating remained Hold, with an average price target of $156.17.
• Roku shares opened at $155.59 near their 12-month high, while insiders sold 145,773 shares worth approximately $20.6 million over the prior three months, mostly through pre-arranged Rule 10b5-1 plans.

Readystate Asset Management LP purchased a new position in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 161,958 shares of the company's stock, valued at approximately $22,373,000. Readystate Asset Management LP owned 0.11% of Roku as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently made changes to their positions in the company. AQR Capital Management LLC raised its stake in Roku by 10.6% in the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company's stock valued at $310,298,000 after acquiring an additional 274,024 shares during the period. Geode Capital Management LLC boosted its position in Roku by 7.3% during the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock worth $267,389,000 after purchasing an additional 168,214 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock worth $192,868,000 after purchasing an additional 1,419,772 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of Roku by 22.8% in the first quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company's stock worth $148,090,000 after purchasing an additional 290,200 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its position in shares of Roku by 0.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company's stock valued at $163,786,000 after purchasing an additional 12,705 shares during the period. Institutional investors own 86.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the stock. Robert W. Baird reaffirmed a "neutral" rating and issued a $160.00 price objective on shares of Roku in a report on Monday, June 15th. Needham & Company LLC restated a "buy" rating on shares of Roku in a research report on Friday, August 7th. Morgan Stanley increased their target price on Roku from $150.00 to $170.00 and gave the stock an "overweight" rating in a research report on Thursday, June 4th. William Blair lowered Roku from an "outperform" rating to a "market perform" rating in a report on Monday, June 15th. Finally, Fox Advisors set a $157.00 price target on Roku in a research report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $156.17.

Roku Stock Performance

Shares of NASDAQ:ROKU opened at $155.59 on Monday. The company has a 50 day moving average of $148.57 and a 200 day moving average of $124.95. The stock has a market cap of $23.09 billion, a P/E ratio of 66.49 and a beta of 2.05. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $159.89.

Roku (NASDAQ:ROKU - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $1.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.47. The business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.30 billion. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business's revenue for the quarter was up 21.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.07 EPS. On average, equities analysts forecast that Roku, Inc. will post 2.85 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Roku news, insider Charles Collier sold 20,538 shares of the firm's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $145.93, for a total value of $2,997,110.34. Following the sale, the insider owned 15,200 shares of the company's stock, valued at $2,218,136. This trade represents a 57.47% decrease in their position. The transaction 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, insider Gilbert Fuchsberg sold 10,719 shares of Roku stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $150.00, for a total value of $1,607,850.00. Following the sale, the insider owned 40,380 shares of the company's stock, valued at approximately $6,057,000. This trade represents a 20.98% decrease in their position. 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 three months, insiders sold 145,773 shares of company stock worth $20,575,950. 13.45% of the stock is owned by corporate insiders.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Improving earnings outlook: Zacks assigned Roku a No. 1 “Strong Buy” ranking, citing upward EPS revisions. The rating follows Roku’s latest quarterly results, which exceeded consensus estimates for both earnings and revenue, with revenue rising 21.9% year over year. Bullish EPS Revisions Back IBKR, SNDK, and ROKU
• Positive Sentiment: Short-term technical momentum: ROKU recently moved above its 20-day moving average, suggesting improving near-term trading momentum and investor support. Roku Just Overtook the 20-Day Moving Average
• Positive Sentiment: Premium hardware expansion: Roku’s Pro Series OLED televisions, starting at $999, could improve its position in higher-end TV hardware and provide additional opportunities to monetize its platform. Roku’s $999 OLED Could Change How TV Makers Make Money
• Neutral Sentiment: Platform activity: Pluto TV launched a major update on Roku TVs and players, while the Roku Streaming Stick Plus returned to its prior Amazon price. These developments may support engagement and device demand, but their direct impact on near-term revenue is unclear. Pluto TV Rolls Out an Update on Roku Devices
• Neutral Sentiment: Consumer support coverage: Articles describing simple Roku troubleshooting steps and retail discounts for Roku TVs may help customer experience and product sales, but are unlikely to materially affect valuation. Common Roku Problems
• Negative Sentiment: Concentrated insider selling: Executives and directors sold a combined 20,846 shares worth roughly $3.25 million. The transactions were made under pre-arranged Rule 10b5-1 plans, and most covered tax withholding on vested equity awards, reducing the bearish significance. Still, the volume of selling may weigh on sentiment, particularly with ROKU near its annual high. Roku Insider Selling

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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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