Roku, Inc. $ROKU Holdings Lifted by Bank of America Corp DE

Key Points

• Bank of America increased its Roku stake by 5.5% in the first quarter to 1.08 million shares valued at approximately $102.45 million. Institutional investors and hedge funds collectively own 86.3% of Roku.
• Roku reported stronger-than-expected quarterly results, with revenue rising 21.9% year over year to $1.35 billion and earnings of $1.08 per share versus the $0.61 consensus estimate.
• Insiders sold 237,452 shares worth about $31.5 million over the past quarter, while analyst sentiment remains mixed: Roku has a consensus “Hold” rating and an average price target of $155.75.

Bank of America Corp DE boosted its holdings in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 5.5% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 1,082,755 shares of the company's stock after buying an additional 56,893 shares during the period. Bank of America Corp DE owned approximately 0.73% of Roku worth $102,450,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. Empowered Funds LLC grew its position in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after purchasing an additional 515 shares in the last quarter. Focus Partners Wealth purchased a new stake in shares of Roku during the first quarter worth $229,000. EverSource Wealth Advisors LLC boosted 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 during the last quarter. First Trust Advisors LP boosted its position in Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock valued at $6,221,000 after purchasing an additional 49,399 shares during the last quarter. Finally, Brown Advisory Inc. purchased a new position in Roku in the second quarter valued at about $326,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, Director Neil D. Hunt sold 2,000 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $146.25, for a total transaction of $292,500.00. Following the transaction, the director directly owned 9,629 shares in the company, valued at $1,408,241.25. The trade was a 17.20% decrease in their ownership of the stock. 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, CFO Dan Jedda sold 7,000 shares of the company's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $143.87, for a total value of $1,007,090.00. Following the completion of the transaction, the chief financial officer owned 79,963 shares of the company's stock, valued at $11,504,276.81. The trade was a 8.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 237,452 shares of company stock valued at $31,470,382 in the last quarter. 13.45% of the stock is currently owned by insiders.

Roku Price Performance

Roku stock opened at $153.11 on Friday. Roku, Inc. has a fifty-two week low of $78.53 and a fifty-two week high of $153.54. The firm has a fifty day moving average price of $138.39 and a two-hundred day moving average price of $116.30. The firm has a market cap of $22.57 billion, a price-to-earnings ratio of 65.43 and a beta of 2.01.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $1.08 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.47. Roku had a return on equity of 13.95% and a net margin of 6.82%.The business had revenue of $1.35 billion during the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the previous year, the firm earned $0.07 EPS. The firm's revenue was up 21.9% compared to the same quarter last year. As a group, sell-side analysts expect that Roku, Inc. will post 2.41 earnings per share for the current year.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported second-quarter revenue of approximately $1.35 billion, up 21.9% year over year and above the roughly $1.30 billion consensus estimate. Earnings reached about $1.08 per share, compared with $0.07 a year earlier and estimates near $0.61, while the company also highlighted record profitability and free cash flow. ROKU Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The platform business remains Roku’s primary growth engine. Advertising spending increased 25% and subscriptions rose 26%, supporting higher-margin revenue and stronger engagement. Roku Ad Spend Up 25%, Subscriptions Rise 26%
• Positive Sentiment: Roku said improved search capabilities and artificial intelligence help viewers interpret broad queries and discover content more efficiently. Better discovery could increase viewing time, platform engagement and advertising opportunities. Roku Credits Search and AI
• Neutral Sentiment: Fox’s proposed $22 billion acquisition of Roku remains pending. The transaction may provide strategic support, but Roku is not holding an earnings call or issuing financial guidance while the deal proceeds. Roku Second-Quarter Results
• Negative Sentiment: Despite improving cash flow, Roku’s valuation remains demanding, with a high earnings multiple and mixed signals between discounted-cash-flow estimates and market multiples. Pre-arranged insider sales, including a transaction by President Charles Collier, may also add modest investor caution. Roku Valuation Analysis

Analyst Ratings Changes

Several research analysts have weighed in on the company. Citizens Jmp lowered Roku from a "market outperform" rating to a "hold" rating in a research report on Tuesday, June 16th. Wolfe Research cut Roku from an "outperform" rating to a "peer perform" rating in a research note on Tuesday, June 16th. Evercore downgraded Roku from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Pivotal Research reaffirmed a "buy" rating and set a $160.00 price objective (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Finally, UBS Group set a $160.00 target price on shares of Roku in a research note on Monday, June 15th. Nine analysts have rated the stock with a Buy rating and eighteen have issued a Hold rating to the stock. According to MarketBeat.com, Roku presently has a consensus rating of "Hold" and an average target price of $155.75.

Roku Company 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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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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