Voleon Capital Management LP Makes New Investment in Roku, Inc. $ROKU

Key Points

• Voleon Capital Management LP has made a new investment in Roku, Inc., acquiring 19,022 shares valued at approximately $1.34 million in the first quarter.
• Several institutional investors, including Vanguard Group Inc. and Jacobs Levy Equity Management Inc., have increased their holdings in Roku, contributing to a total institutional ownership of 86.30%.
• Roku's last quarterly earnings report showed an EPS of $0.07, exceeding estimates, with revenues of $1.11 billion, up 14.7% year-over-year.

Voleon Capital Management LP purchased a new stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 19,022 shares of the company's stock, valued at approximately $1,340,000.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in ROKU. Two Sigma Investments LP grew its stake in Roku by 149.8% in the fourth quarter. Two Sigma Investments LP now owns 1,210,879 shares of the company's stock valued at $90,017,000 after purchasing an additional 726,077 shares during the last quarter. Tremblant Capital Group acquired a new stake in Roku in the fourth quarter worth about $43,220,000. Duquesne Family Office LLC acquired a new stake in Roku in the first quarter worth about $34,769,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Roku by 38,431.7% in the first quarter. Northwestern Mutual Wealth Management Co. now owns 489,353 shares of the company's stock worth $34,470,000 after acquiring an additional 488,083 shares in the last quarter. Finally, Two Sigma Advisers LP boosted its holdings in Roku by 479.1% in the fourth quarter. Two Sigma Advisers LP now owns 568,100 shares of the company's stock worth $42,233,000 after acquiring an additional 470,000 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Price Performance

ROKU stock traded down $2.40 during trading on Tuesday, hitting $96.99. 4,292,525 shares of the company traded hands, compared to its average volume of 3,154,715. The stock's 50-day simple moving average is $90.60 and its 200 day simple moving average is $78.28. The company has a market cap of $14.29 billion, a PE ratio of -230.93, a P/E/G ratio of 13.91 and a beta of 2.05. Roku, Inc. has a 1 year low of $52.43 and a 1 year high of $104.96.

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

Insiders Place Their Bets

In other news, CEO Anthony J. Wood sold 25,000 shares of the business's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $82.42, for a total value of $2,060,500.00. Following the completion of the sale, the chief executive officer directly owned 16,441 shares in the company, valued at $1,355,067.22. The trade was a 60.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Charles Collier sold 10,269 shares of the business's stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $99.14, for a total value of $1,018,068.66. Following the completion of the sale, the insider owned 200 shares of the company's stock, valued at $19,828. This trade represents a 98.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 318,588 shares of company stock valued at $29,753,228 over the last ninety days. 13.98% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on ROKU. Rosenblatt Securities raised their price target on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Wall Street Zen raised Roku from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Needham & Company LLC raised their price target on Roku from $100.00 to $110.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Pivotal Research raised their price target on Roku from $100.00 to $120.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Finally, JMP Securities lifted their target price on Roku from $110.00 to $145.00 and gave the stock a "market outperform" rating in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $100.36.

Roku Company 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.