WCG Wealth Advisors LLC Invests $2.14 Million in Roku, Inc. $ROKU

Key Points

• WCG Wealth Advisors LLC opened a new position in Roku during the fourth quarter, buying 19,722 shares worth about $2.14 million.
• Roku reported strong quarterly results, with EPS of $0.57 versus $0.34 expected and revenue of $1.25 billion, up 22.4% year over year.
• Analysts remain broadly positive on the stock, with 22 Buy ratings and an average target price of $145.29, while Roku also continues to expand its free ad-supported streaming offerings and device bundles.

WCG Wealth Advisors LLC acquired a new position in Roku, Inc. (NASDAQ:ROKU - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 19,722 shares of the company's stock, valued at approximately $2,140,000.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in ROKU. Jefferies Financial Group Inc. acquired a new position in Roku in the fourth quarter valued at about $1,345,000. Holocene Advisors LP raised its stake in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock worth $165,259,000 after acquiring an additional 1,285,585 shares in the last quarter. Crossmark Global Holdings Inc. acquired a new position in Roku during the third quarter worth about $2,997,000. MH & Associates Securities Management Corp ADV acquired a new position in Roku during the fourth quarter worth about $2,398,000. Finally, Magnetar Financial LLC acquired a new position in Roku during the third quarter worth about $5,466,000. Institutional investors and hedge funds own 86.30% of the company's stock.

Roku Stock Performance

Shares of ROKU opened at $122.26 on Friday. The business has a 50-day moving average of $115.32 and a 200 day moving average of $105.15. Roku, Inc. has a fifty-two week low of $73.91 and a fifty-two week high of $133.46. The firm has a market cap of $18.02 billion, a P/E ratio of 91.93 and a beta of 2.06.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the prior year, the firm posted ($0.19) earnings per share. The company's revenue for the quarter was up 22.4% on a year-over-year basis. As a group, research analysts predict that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of analysts have weighed in on ROKU shares. Weiss Ratings reissued a "hold (c-)" rating on shares of Roku in a research report on Friday, May 15th. Guggenheim increased their target price on shares of Roku from $130.00 to $140.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Pivotal Research reissued a "buy" rating and set a $160.00 target price (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Benchmark increased their target price on shares of Roku from $130.00 to $160.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Finally, Wedbush increased their price target on Roku from $140.00 to $155.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. Twenty-two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $145.29.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to expand its free ad-supported streaming lineup, adding new channels including Sports Illustrated and FIFA Plus, plus four more free channels in June. That supports engagement on The Roku Channel and could improve ad inventory and viewing time. Article Title
• Positive Sentiment: The company also launched a $25 bundle pairing the Streaming Stick Plus with Fox One, which may help drive device sales and keep Roku’s ecosystem competitive. Article Title
• Positive Sentiment: Roku has been benefiting from a bullish narrative around its growing household reach and stronger live-sports positioning, which investors may see as supportive of future ad and platform revenue. Article Title

Insiders Place Their Bets

In other news, insider Charles Collier sold 205,821 shares of the business's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total transaction of $21,611,205.00. Following the completion of the transaction, the insider owned 11,131 shares of the company's stock, valued at approximately $1,168,755. The trade was a 94.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony J. Wood sold 75,000 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $128.79, for a total value of $9,659,250.00. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 696,631 shares of company stock worth $77,636,680 over the last three months. Company insiders own 13.45% of the company's stock.

Roku Profile

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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