Timelo Investment Management Inc. Purchases New Position in Roku, Inc. (NASDAQ:ROKU)

Key Points

• Timelo Investment Management Inc. has purchased 10,000 shares of Roku, Inc., valued at approximately $704,000, making Roku the 6th largest position in their portfolio.
• Several top investment firms have significantly increased their stakes in Roku, with Cadian Capital Management investing $87.6 million in the fourth quarter alone.
• Analysts have raised Roku's target stock price, with Bank of America increasing it from $100 to $110, reflecting a positive outlook on the company's performance.

Timelo Investment Management Inc. bought a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 10,000 shares of the company's stock, valued at approximately $704,000. Roku comprises about 2.1% of Timelo Investment Management Inc.'s portfolio, making the stock its 6th largest position.

A number of other institutional investors also recently modified their holdings of ROKU. Cadian Capital Management LP bought a new position in shares of Roku in the fourth quarter worth about $87,632,000. Jacobs Levy Equity Management Inc. raised its stake in shares of Roku by 505.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,296,774 shares of the company's stock worth $96,402,000 after acquiring an additional 1,082,548 shares during the last quarter. Two Sigma Investments LP raised its stake in shares of Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock worth $90,017,000 after acquiring an additional 726,077 shares during the last quarter. Gilder Gagnon Howe & Co. LLC raised its stake in shares of Roku by 214.1% in the fourth quarter. Gilder Gagnon Howe & Co. LLC now owns 864,974 shares of the company's stock worth $64,302,000 after acquiring an additional 589,610 shares during the last quarter. Finally, Tremblant Capital Group bought a new position in shares of Roku in the fourth quarter worth about $43,220,000. 86.30% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ROKU. Bank of America boosted their target price on shares of Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, July 3rd. JMP Securities boosted their price target on shares of Roku from $95.00 to $110.00 and gave the stock a "market outperform" rating in a research note on Monday, July 21st. Loop Capital raised shares of Roku from a "hold" rating to a "buy" rating and boosted their price target for the stock from $80.00 to $100.00 in a research note on Tuesday, June 17th. Wall Street Zen raised shares of Roku from a "hold" rating to a "buy" rating in a research note on Saturday, July 26th. Finally, KeyCorp boosted their price target on shares of Roku from $115.00 to $116.00 and gave the stock an "overweight" rating in a research note on Friday, August 1st. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, nineteen have assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $98.96.

Insider Buying and Selling at Roku

In other Roku news, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction on Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the sale, the chief accounting officer directly owned 5,195 shares of the company's stock, valued at approximately $441,834.75. This represents a 39.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Charles Collier sold 212,559 shares of the company's stock in a transaction on Monday, July 21st. The stock was sold at an average price of $95.00, for a total transaction of $20,193,105.00. Following the sale, the insider directly owned 200 shares in the company, valued at $19,000. This trade represents a 99.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 337,233 shares of company stock worth $30,423,181. Company insiders own 13.98% of the company's stock.

Roku Stock Up 3.2%

Roku stock opened at $90.29 on Friday. The stock has a market capitalization of $13.30 billion, a PE ratio of -214.98, a price-to-earnings-growth ratio of 12.25 and a beta of 2.05. Roku, Inc. has a twelve month low of $52.43 and a twelve month high of $104.96. The company has a 50 day moving average of $86.19 and a 200-day moving average of $77.40.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.07 EPS for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The business had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. Roku had a negative net margin of 1.40% and a negative return on equity of 2.44%. The firm's revenue for the quarter was up 14.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.18) earnings per share. 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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