Squarepoint Ops LLC Sells 1,108,745 Shares of Roku, Inc. $ROKU

Key Points

• Squarepoint Ops LLC cut its Roku stake by 62.4%, selling 1,108,745 shares and retaining 669,221 shares valued at approximately $92.4 million. Institutional investors and hedge funds collectively own 86.3% of Roku.
• Analysts maintain a broadly cautious outlook, with Roku receiving an average “Hold” rating and a consensus price target of $156.17. Recent target prices range from $160 at JPMorgan and Guggenheim to $170 at Morgan Stanley.
• Roku reported stronger-than-expected quarterly results, including $1.08 in EPS versus $0.61 expected and $1.35 billion in revenue, up 21.9% year over year. However, an expanded DOJ antitrust inquiry into Fox’s proposed acquisition has increased deal uncertainty and pressured the stock.

Squarepoint Ops LLC decreased its stake in Roku, Inc. (NASDAQ:ROKU - Free Report) by 62.4% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 669,221 shares of the company's stock after selling 1,108,745 shares during the period. Squarepoint Ops LLC owned 0.45% of Roku worth $92,446,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Empowered Funds LLC increased its position in Roku by 18.6% during the 1st quarter. Empowered Funds LLC now owns 3,291 shares of the company's stock valued at $232,000 after purchasing an additional 515 shares during the period. Focus Partners Wealth bought a new stake in shares of Roku in the 1st quarter valued at $229,000. EverSource Wealth Advisors LLC increased its position in shares of Roku by 145.4% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company's stock worth $123,000 after buying an additional 826 shares during the period. First Trust Advisors LP increased its position in shares of Roku by 231.0% during the second quarter. First Trust Advisors LP now owns 70,786 shares of the company's stock worth $6,221,000 after buying an additional 49,399 shares during the period. Finally, Brown Advisory Inc. bought a new position in Roku during the second quarter worth $326,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts have commented on ROKU shares. JPMorgan Chase & Co. started coverage on shares of Roku in a research report on Monday, August 24th. They set a "neutral" rating and a $160.00 price target on the stock. Guggenheim downgraded Roku from a "buy" rating to a "neutral" rating and boosted their price objective for the company from $145.00 to $160.00 in a research note on Friday, August 7th. Weiss Ratings upgraded Roku from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 11th. Morgan Stanley upped their target price on Roku from $150.00 to $170.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. Finally, Evercore cut Roku from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. One investment 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 stock. Based on data from MarketBeat, Roku currently has an average rating of "Hold" and a consensus target price of $156.17.

Insider Transactions at Roku

In other news, CEO Anthony Wood sold 25,000 shares of Roku stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $130.00, for a total transaction of $3,250,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $143.87, for a total transaction of $1,007,090.00. Following the sale, the chief financial officer directly owned 79,963 shares of the company's stock, valued at approximately $11,504,276.81. The trade was a 8.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 127,773 shares of company stock valued at $18,442,050. Corporate insiders own 13.45% of the company's stock.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Coverage of Roku’s NFL-related announcement could support user engagement and streaming activity, although the financial impact was not quantified. Roku NFL announcement
• Neutral Sentiment: Consumer coverage highlighted discounts and product availability for Roku streaming sticks, smart TVs, and Roku-enabled projectors. These promotions may aid device adoption but are unlikely to materially change near-term revenue expectations. Roku Streaming Stick deal Roku smart TV coverage
• Neutral Sentiment: Roku’s products continued to receive favorable comparisons with competing streaming devices, but the reviews and buying guides do not represent a new corporate catalyst. Roku device comparison
• Negative Sentiment: The DOJ’s expanded antitrust inquiry into Fox’s proposed acquisition is the dominant stock catalyst. A second request increases regulatory scrutiny and could delay completion, raise transaction costs, require concessions, or threaten the deal’s terms. Reports specifically linked the development to weakness in ROKU shares during after-hours trading. Reuters DOJ Roku deal report ROKU after-hours reaction

Roku Stock Down 0.2%

NASDAQ ROKU opened at $155.34 on Wednesday. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $159.89. The business has a 50 day moving average price of $149.29 and a 200-day moving average price of $125.88. The company has a market cap of $23.06 billion, a price-to-earnings ratio of 66.38 and a beta of 2.05.

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

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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