VIRGINIA RETIREMENT SYSTEMS ET Al Invests $4.47 Million in Roku, Inc. $ROKU

Key Points

• Virginia Retirement Systems purchased a new $4.47 million stake in Roku, acquiring 32,390 shares during the second quarter. Institutional investors collectively own 86.30% of Roku’s stock.
• Roku exceeded quarterly expectations, reporting $1.08 in EPS and $1.35 billion in revenue, with revenue up 21.9% year over year. Despite this growth, analysts maintain a consensus “Hold” rating and an average price target of $156.17.
• Roku faces mixed signals: platform engagement could benefit from expanded NFL content, while additional DOJ scrutiny of Fox’s proposed acquisition creates deal uncertainty; insiders have also sold shares recently under pre-arranged trading plans.

VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Roku, Inc. (NASDAQ:ROKU - Free Report) in the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 32,390 shares of the company's stock, valued at approximately $4,474,000.

Other large investors have also recently bought and sold shares of the company. California State Teachers Retirement System increased its stake in Roku by 13,741.7% in the second quarter. California State Teachers Retirement System now owns 20,912,738 shares of the company's stock valued at $2,888,886,000 after purchasing an additional 20,761,653 shares during the period. AQR Capital Management LLC grew its holdings in shares of 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 buying an additional 1,897,407 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company's stock valued at $192,868,000 after acquiring an additional 1,419,772 shares during the period. Fred Alger Management LLC increased its position in Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock valued at $154,212,000 after acquiring an additional 1,401,664 shares during the period. Finally, Norges Bank purchased a new stake in Roku during the 4th quarter valued at approximately $92,808,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the company. Citizens Jmp downgraded Roku from a "market outperform" rating to a "hold" rating in a research note on Tuesday, June 16th. William Blair cut Roku from an "outperform" rating to a "market perform" rating in a research note on Monday, June 15th. Seaport Research Partners downgraded Roku from a "buy" rating to a "neutral" rating in a report on Friday, August 7th. Morgan Stanley lifted their price objective on shares of Roku from $150.00 to $170.00 and gave the company an "overweight" rating in a research report on Thursday, June 4th. Finally, UBS Group boosted their price objective on shares of Roku from $126.00 to $172.00 and gave the company a "neutral" rating in a research note on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and nineteen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $156.17.

Roku Price Performance

ROKU opened at $152.90 on Thursday. Roku, Inc. has a 12 month low of $78.53 and a 12 month high of $159.89. The stock has a market capitalization of $22.69 billion, a P/E ratio of 65.34 and a beta of 2.05. The business has a 50 day simple moving average of $149.54 and a 200-day simple moving average of $126.32.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.08 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.30 billion. During the same quarter last year, the firm posted $0.07 EPS. The business's revenue was up 21.9% compared to the same quarter last year. Research analysts anticipate that Roku, Inc. will post 2.85 EPS for the current year.

Insider Buying and Selling

In related news, insider Charles Collier sold 20,538 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $145.93, for a total value of $2,997,110.34. Following the sale, the insider owned 15,200 shares in the company, valued at $2,218,136. This represents a 57.47% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony Wood sold 25,000 shares of the firm's stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $130.00, for a total value of $3,250,000.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 147,479 shares of company stock valued at $21,566,770 in the last 90 days. 13.45% of the stock is owned by corporate insiders.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: International NFL expansion supports platform engagement. Roku and the NFL are expanding NFL Zone, a league content hub within Roku Sports, to Canada, Mexico and Brazil ahead of the 2026 season. The expansion could increase viewing hours, user engagement and advertising opportunities. Roku and NFL expand NFL Zone to Canada, Mexico and Brazil
• Positive Sentiment: Roku’s strategic value remains evident. Parks Associates data indicates Roku is the most-used streaming media player for 43% of surveyed U.S. internet households, underscoring the importance of its operating system, advertising platform and consumer reach. Parks Associates: Fox Acquisition of Roku
• Neutral Sentiment: Fox says the acquisition remains on track. Fox COO John Nallen characterized the DOJ scrutiny as expected, while Fox and Roku said they will cooperate by providing additional information and documents. The companies continue to expect the deal to close in early 2027. Fox Corp. COO John Nallen Says Roku Deal On Track
• Negative Sentiment: Expanded DOJ review is the main overhang. The Justice Department requested additional information in its antitrust examination of Fox’s proposed acquisition of Roku. The second request raises the risk of a longer closing timeline, additional conditions or potential failure of the transaction, weighing on deal-related investor optimism. DOJ wants more answers on Fox’s $22B Roku deal
• Negative Sentiment: Insider selling may add a modest cautionary signal. Roku insider Charles Collier sold 20,538 shares worth approximately $3.2 million, reducing his holdings by 47.5%. The transaction was conducted under a pre-arranged Rule 10b5-1 plan, limiting its significance as a current view on the stock. Roku insider transaction filing

Roku Profile

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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