Wellington Management Group Cuts Stake in Roku, Inc.

Wellington Management Group LLP has reduced its holdings in Roku, Inc. (NASDAQ:ROKU) by 4.8% in the third quarter, according to recent reports from Holdings Channel. The firm now holds 9,125 shares of Roku following the sale of 462 shares during this period. As of the last reporting, these holdings were valued at approximately $681,000.

Other institutional investors have also adjusted their positions in Roku recently. For instance, Kessler Investment Group LLC increased its stake in Roku by 21.8% in the third quarter, acquiring an additional 13,590 shares to total 75,968 shares worth $5,672,000. Holocene Advisors LP made a significant entry into Roku, acquiring a new position valued at around $129 million. Furthermore, EULAV Asset Management increased their holdings by 59.1%, bringing their total to 183,000 shares valued at about $13.66 million. Meanwhile, Granite Bay Wealth Management LLC and Mackenzie Financial Corp also established new stakes in Roku valued at approximately $1.14 million and $662,000, respectively. Overall, institutional investors control 86.30% of Roku's shares.

Recent Performance of Roku Stock

On the trading front, Roku's stock opened at $80.59. Over the past year, the stock's lowest price was $48.33, while the highest stood at $99.80. The company's fifty-day moving average is $75.32, and its 200-day moving average is $67.71. Roku currently boasts a market capitalization of $11.70 billion, a price-to-earnings (P/E) ratio of -67.16, and a beta of 2.06. The most recent quarterly earnings report was released on October 30, where Roku reported an earnings per share (EPS) of ($0.06), surpassing analyst expectations of ($0.35) by $0.29, alongside a revenue of $1.06 billion—a significant increase from the $1.02 billion anticipated by analysts. Year-over-year, Roku’s revenue rose by 16.5%, demonstrating resilience despite a negative net margin of 4.42% and a return on equity of -7.22%.

Insider Trading Activity

In insider news, Chief Accounting Officer Matthew C. Banks sold 8,693 shares on November 18, for a total of $621,027.92 at an average price of $71.44. As a result, he holds 7,264 shares now valued at around $518,940.16, marking a 54.48% decrease in his position. Another insider, Charles Collier, sold 10,771 shares on the same day at an average price of $71.14, totaling approximately $766,248.94. Consequently, Collier now owns 3,790 shares worth about $269,620.60, which represents a 73.97% decline in his stake. In total, insiders have sold 73,096 shares valued at $5.66 million over the last quarter, retaining 13.98% of the company's stock.

Analyst Perspectives on Roku

Roku has attracted attention from various research analysts. Rosenblatt Securities recently raised its price target from $61.00 to $86.00, issuing a “neutral” rating. UBS initiated coverage with a “neutral” rating and a price target of $73.00. Additionally, Baird R W upgraded Roku from a “hold” to a “strong-buy” rating, and Morgan Stanley increased its target price from $60.00 to $65.00, maintaining an “underweight” rating. Wedbush reiterated an “outperform” rating with an increased target of $100.00, up from $85.00. Overall, opinions remain diverse, with two analysts recommending a sell, nine a hold, twelve a buy, and one a strong buy, resulting in an average rating of “Moderate Buy” and a target price of $83.81 according to MarketBeat.

Overview of Roku, Inc.

Roku, Inc. operates as a major player in the TV streaming platform market both in the United States and internationally. The company has two primary segments: Platform and Devices. Its streaming platform allows users to access a variety of content, including TV shows, movies, news, and sports. The Platform segment primarily involves digital advertising and the distribution of streaming services which include subscription and transaction revenue shares.

Roku, Investing, Shares