Royal Bank of Canada Grows Stake in Roku, Inc. $ROKU

Key Points

• Royal Bank of Canada increased its stake in Roku, Inc. by 308.2%, owning approximately 0.12% of the company, worth $12,085,000 after additional purchases.
• Other institutional investors also expanded their positions in Roku, with Berkshire Capital Holdings increasing its share by an impressive 1,413,400.0%.
• Roku reported earnings of $0.07 per share, beating estimates and achieving a 14.7% increase in revenue compared to the same quarter last year.

Royal Bank of Canada increased its holdings in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 308.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 171,559 shares of the company's stock after purchasing an additional 129,532 shares during the quarter. Royal Bank of Canada owned approximately 0.12% of Roku worth $12,085,000 at the end of the most recent reporting period.

Other institutional investors have also recently made changes to their positions in the company. Berkshire Capital Holdings Inc. grew its position in shares of Roku by 1,413,400.0% during the first quarter. Berkshire Capital Holdings Inc. now owns 141,350 shares of the company's stock worth $9,957,000 after purchasing an additional 141,340 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Roku during the first quarter worth about $6,026,000. Atika Capital Management LLC purchased a new stake in shares of Roku during the first quarter worth about $5,086,000. Lecap Asset Management Ltd. purchased a new stake in shares of Roku during the first quarter worth about $511,000. Finally, Siemens Fonds Invest GmbH purchased a new stake in shares of Roku during the fourth quarter worth about $1,681,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

Insider Activity at Roku

In other Roku news, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $85.05, for a total value of $285,768.00. Following the transaction, the chief accounting officer directly owned 5,195 shares in the company, valued at $441,834.75. This represents a 39.28% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the company's stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $100.00, for a total transaction of $5,052,700.00. The disclosure for this sale can be found here. Insiders have sold 394,115 shares of company stock valued at $37,305,928 over the last 90 days. 13.98% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on ROKU shares. Piper Sandler raised their price target on Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a report on Thursday, July 10th. JMP Securities raised their price target on Roku from $110.00 to $145.00 and gave the company a "market outperform" rating in a report on Monday. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. KeyCorp raised their price target on Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Finally, Guggenheim boosted their target price on shares of Roku from $100.00 to $105.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $100.67.

Roku Stock Up 1.5%

ROKU opened at $96.39 on Friday. The business has a fifty day moving average of $90.93 and a 200 day moving average of $78.43. Roku, Inc. has a 52-week low of $52.43 and a 52-week high of $104.96. The stock has a market cap of $14.20 billion, a P/E ratio of -229.50, a PEG ratio of 13.29 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.23. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The company had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same quarter in the previous year, the business earned ($0.18) EPS. Roku's revenue was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. Equities analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Roku Profile

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

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