Roku, Inc. $ROKU Shares Acquired by Entropy Technologies LP

Key Points

• Entropy Technologies LP nearly doubled its Roku position in the fourth quarter, increasing holdings by 95.6% to 18,615 shares valued at about $2.0 million.
• Several other major institutions also hold large stakes in Roku, and overall institutional ownership stands at 86.3%. Meanwhile, insiders have been active sellers, with CEO Anthony J. Wood and others recently selling shares under pre-arranged trading plans.
• Analysts remain mixed on Roku: recent rating cuts from Jefferies and Piper Sandler offset bullish views from Evercore, leaving the stock with a “Moderate Buy” consensus and an average price target of $149.76.

Entropy Technologies LP increased its holdings in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 95.6% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 18,615 shares of the company's stock after acquiring an additional 9,099 shares during the period. Entropy Technologies LP's holdings in Roku were worth $2,020,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of ROKU. Vanguard Group Inc. raised its holdings in Roku by 2.5% during the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company's stock worth $1,301,557,000 after purchasing an additional 322,858 shares during the last quarter. AQR Capital Management LLC raised its position in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock worth $258,897,000 after acquiring an additional 1,897,407 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock valued at $267,389,000 after purchasing an additional 168,214 shares in the last quarter. Holocene Advisors LP lifted its holdings in shares of Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. grew 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 last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Insider Buying and Selling at Roku

In other news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $130.00, for a total transaction of $3,250,000.00. The sale was disclosed in a document filed with the SEC, 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 stock was sold at an average price of $144.00, for a total value of $1,467,936.00. Following the sale, the insider directly owned 19,185 shares in the company, valued at approximately $2,762,640. The trade was a 34.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 706,194 shares of company stock valued at $80,756,499. Company insiders own 13.45% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on ROKU shares. Jefferies Financial Group downgraded Roku from a "buy" rating to a "hold" rating and set a $160.00 price target for the company. in a research report on Monday. UBS Group set a $160.00 price target on Roku in a research report on Monday. Robert W. Baird reissued a "neutral" rating and set a $160.00 price target on shares of Roku in a research report on Monday. Piper Sandler downgraded Roku from an "overweight" rating to a "neutral" rating and set a $160.00 price target for the company. in a research report on Tuesday. Finally, Evercore reissued an "outperform" rating and set a $185.00 price target on shares of Roku in a research report on Friday. Sixteen equities research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and an average target price of $149.76.

Roku Trading Down 1.9%

Shares of Roku stock opened at $140.90 on Tuesday. Roku, Inc. has a twelve month low of $77.64 and a twelve month high of $148.88. The stock has a market capitalization of $20.77 billion, a P/E ratio of 105.94 and a beta of 2.06. The business's fifty day moving average price is $119.60 and its 200 day moving average price is $106.65.

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

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Fox’s $22 billion acquisition of Roku gives shareholders a clear takeover premium and sent the stock sharply higher as traders priced in deal value. Reuters: Fox to buy Roku in $22 billion deal
• Positive Sentiment: The transaction could strengthen Roku’s strategic position by pairing its streaming platform with Fox’s content and advertising ecosystem, supporting the bull case for a larger connected-TV leader. CNBC: Fox to buy streaming device maker Roku for $22 billion
• Positive Sentiment: Heavy options activity and earlier sale-talk reports suggest traders were positioning for a deal before the formal announcement, adding momentum to the stock. Stocktwits: Roku lands $22B buyout offer from Fox
• Neutral Sentiment: Trading in ROKU was briefly halted for “news pending,” reflecting the market’s anticipation of a major announcement rather than a change in fundamentals. Reuters: Fox to buy Roku in $22 billion deal
• Negative Sentiment: Some investor-rights firms have opened investigations into whether the deal gives Roku shareholders a fair price, which could create uncertainty or delay-related headlines. PRNewswire: Shareholder Alert on Roku fair price investigation

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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