Roku, Inc. $ROKU Shares Sold by Engineers Gate Manager LP

Key Points

• Engineers Gate Manager LP cut its Roku stake by 78.5% in the second quarter, selling 81,900 shares and retaining 22,466 shares worth approximately $3.1 million. Institutional investors and hedge funds own 86.3% of Roku.
• Roku reported quarterly earnings of $1.08 per share, beating estimates of $0.61, while revenue rose 21.9% year over year to $1.35 billion. Shares opened at $154.93, near the company’s 12-month high of $159.89.
• Analyst sentiment remains mixed, with Roku holding a consensus “Hold” rating and an average price target of $156.17. Recent insider sales totaled 105,285 shares worth $15.8 million, though some transactions were made to cover tax obligations from equity awards.

Engineers Gate Manager LP trimmed its position in Roku, Inc. (NASDAQ:ROKU - Free Report) by 78.5% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 22,466 shares of the company's stock after selling 81,900 shares during the period. Engineers Gate Manager LP's holdings in Roku were worth $3,103,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. Raleigh Capital Management Inc. raised its position in shares of Roku by 6.5% in the 1st quarter. Raleigh Capital Management Inc. now owns 1,522 shares of the company's stock worth $144,000 after buying an additional 93 shares during the period. Quantum Portfolio Management LLC increased its stake in Roku by 2.6% during the first quarter. Quantum Portfolio Management LLC now owns 4,135 shares of the company's stock worth $391,000 after acquiring an additional 105 shares during the last quarter. HB Wealth Management LLC increased its stake in Roku by 3.7% during the first quarter. HB Wealth Management LLC now owns 3,447 shares of the company's stock worth $326,000 after acquiring an additional 122 shares during the last quarter. Quarry LP raised its holdings in shares of Roku by 21.7% in the 4th quarter. Quarry LP now owns 689 shares of the company's stock worth $75,000 after purchasing an additional 123 shares during the period. Finally, Swiss Life Asset Management Ltd raised its holdings in shares of Roku by 2.2% in the 4th quarter. Swiss Life Asset Management Ltd now owns 5,969 shares of the company's stock worth $648,000 after purchasing an additional 127 shares during the period. 86.30% of the stock is owned by institutional investors and hedge funds.

Insider Activity at Roku

In related news, SVP Christopher T. Handman sold 2,999 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $466,764.36. Following the completion of the sale, the senior vice president directly owned 8,997 shares in the company, valued at approximately $1,400,293.08. This trade represents a 25.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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, CAO Matthew C. Banks sold 546 shares of the stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $155.64, for a total transaction of $84,979.44. Following the transaction, the chief accounting officer owned 8,122 shares in the company, valued at approximately $1,264,108.08. This trade represents a 6.30% 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. Over the last 90 days, insiders sold 105,285 shares of company stock worth $15,841,744. Insiders own 13.45% of the company's stock.

Roku Stock Performance

Shares of NASDAQ:ROKU opened at $154.93 on Monday. The firm has a market cap of $22.99 billion, a P/E ratio of 66.21 and a beta of 2.05. Roku, Inc. has a twelve month low of $78.53 and a twelve month high of $159.89. The company has a 50 day moving average of $150.02 and a 200-day moving average of $127.28.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, topping the consensus estimate of $0.61 by $0.47. The firm 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%. Roku's revenue for the quarter was up 21.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.07 earnings per share. Equities research analysts forecast that Roku, Inc. will post 2.85 EPS for the current year.

Analysts Set New Price Targets

ROKU has been the subject of several recent research reports. Rosenblatt Securities reaffirmed a "buy" rating and issued a $160.00 price objective on shares of Roku in a research report on Monday, August 10th. Jefferies Financial Group cut shares of Roku from a "buy" rating to a "hold" rating and set a $160.00 target price on the stock. in a research report on Monday, June 15th. Oppenheimer downgraded shares of Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Evercore lowered shares of Roku from a "strong-buy" rating to a "hold" rating in a report on Monday, June 15th. Finally, UBS Group lifted their price target on shares of Roku from $126.00 to $172.00 and gave the stock a "neutral" rating in a research note on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have assigned a Hold rating to the company. According to MarketBeat, Roku currently has an average rating of "Hold" and a consensus target price of $156.17.

About Roku

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. Its Roku operating system powers streaming players, Roku-branded televisions and smart-TV products made by licensing partners. The platform provides access to streaming services, live television, movies, music and other applications.

The company also operates The Roku Channel, its own ad-supported streaming service offering licensed and original content, including movies, television programs, live channels and premium subscription options.

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