Roku, Inc. (NASDAQ:ROKU) Sees Significant Drop in Short Interest

Key Points

• Roku, Inc. experienced a significant 30.1% drop in short interest in August, reducing totals to 7,090,000 shares.
• Analysts have mostly positive ratings for Roku, with a consensus price target of $100.67 and multiple upgrades, highlighting expectations for future performance.
• Insider selling activity was noted, with key individuals offloading 389,025 shares valued at approximately $36.9 million over the last quarter.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) saw a significant decline in short interest in the month of August. As of August 31st, there was short interest totaling 7,090,000 shares, a decline of 30.1% from the August 15th total of 10,140,000 shares. Based on an average daily trading volume, of 3,730,000 shares, the days-to-cover ratio is currently 1.9 days. Currently, 5.6% of the company's shares are short sold. Currently, 5.6% of the company's shares are short sold. Based on an average daily trading volume, of 3,730,000 shares, the days-to-cover ratio is currently 1.9 days.

Analyst Upgrades and Downgrades

ROKU has been the topic of several recent analyst reports. Wedbush reiterated an "outperform" rating and issued a $100.00 price target on shares of Roku in a report on Monday, July 28th. Citigroup reissued an "outperform" rating on shares of Roku in a research note on Monday, August 25th. UBS Group lifted their price objective on Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research report on Friday, August 1st. Rosenblatt Securities upped their target price on Roku from $75.00 to $101.00 and gave the stock a "neutral" rating in a report on Friday, August 1st. Finally, Piper Sandler raised their target price on Roku from $65.00 to $84.00 and gave the company a "neutral" rating in a research note on Thursday, July 10th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Roku currently has an average rating of "Moderate Buy" and a consensus price target of $100.67.

Roku Stock Performance

Shares of ROKU stock opened at $93.92 on Tuesday. The company has a market capitalization of $13.84 billion, a price-to-earnings ratio of -223.62, a price-to-earnings-growth ratio of 13.23 and a beta of 2.05. The company's 50-day moving average is $91.18 and its 200 day moving average is $78.49. Roku has a one year low of $52.43 and a one year high of $104.96.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share for the quarter, topping analysts' consensus estimates of ($0.16) by $0.23. The company had revenue of $1.11 billion during 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 period in the previous year, the business earned ($0.18) EPS. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, research analysts predict that Roku will post -0.3 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Matthew C. Banks sold 3,360 shares of the company's stock in a transaction dated Monday, August 4th. The shares were sold at an average price of $85.05, for a total transaction of $285,768.00. Following the completion of the transaction, 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 sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mustafa Ozgen sold 50,527 shares of the stock in a transaction dated Tuesday, September 9th. The stock was sold at an average price of $100.00, for a total transaction of $5,052,700.00. The disclosure for this sale can be found here. Insiders sold 389,025 shares of company stock valued at $36,878,798 over the last quarter. Company insiders own 13.98% of the company's stock.

Hedge Funds Weigh In On Roku

Hedge funds have recently bought and sold shares of the business. Tableaux LLC bought a new stake in shares of Roku in the second quarter worth $1,746,000. Acadian Asset Management LLC boosted its position in Roku by 456.7% in the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock worth $134,222,000 after purchasing an additional 1,563,449 shares during the last quarter. Two Sigma Investments LP boosted its position in 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 purchasing an additional 726,077 shares during the last quarter. Duquesne Family Office LLC grew its stake in shares of Roku by 123.0% during the 2nd quarter. Duquesne Family Office LLC now owns 1,100,500 shares of the company's stock valued at $96,723,000 after purchasing an additional 606,900 shares during the period. Finally, Tremblant Capital Group purchased a new stake in shares of Roku during the 4th quarter valued at about $43,220,000. Hedge funds and other institutional investors own 86.30% of the company's stock.

About Roku

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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