Roku, Inc. $ROKU Stock Sold by Kestra Investment Management LLC

Kestra Investment Management LLC reduced its stake in shares of Roku, Inc. (NASDAQ:ROKU) by 25.6% in the 3rd quarter, HoldingsChannel reports. The institutional investor owned 11,203 shares of the company’s stock after selling 3,855 shares during the quarter. Kestra Investment Management LLC’s holdings in Roku were worth $1,706,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently made changes to their positions in the stock. Signature Equity Partners LLC increased its position in shares of Roku by 1,225.0% in the 3rd quarter. Signature Equity Partners LLC now owns 212 shares of the company’s stock valued at $32,000 after acquiring an additional 196 shares during the period. CX Institutional raised its stake in Roku by 44.1% in the 3rd quarter. CX Institutional now owns 281 shares of the company’s stock worth $43,000 after acquiring an additional 86 shares during the last quarter. Elevation Wealth Partners LLC raised its stake in Roku by 208.7% in the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company’s stock worth $44,000 after acquiring an additional 215 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in Roku during the 3rd quarter worth about $46,000. Finally, Coppell Advisory Solutions LLC acquired a new stake in Roku during the 2nd quarter worth about $47,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: More free channels may support engagement. The Roku Channel added five free live-TV channels, giving viewers more content and potentially supporting audience and advertising growth. The Roku Channel just added five more free live TV channels
• Positive Sentiment: Holiday promotions could help device sales. Roku announced Black Friday discounts of more than 50% on select TVs, projectors, and streaming players, including devices starting at $19.99. The promotions may support seasonal sales, though discounts could also weigh on margins. Roku announces Black Friday deals
• Neutral Sentiment: Fox’s acquisition is complete, shifting attention to execution. Fox completed its reported $22 billion acquisition of Roku on November 6, after the DOJ said the transaction was not likely to harm competition. Investors will now watch streaming growth, cost savings, and regulatory commitments; benefits have yet to be demonstrated. Fox’s $22 billion Roku acquisition
• Neutral Sentiment: Fox is arranging acquisition financing. Fox is marketing about $8 billion of investment-grade bonds to repay a bridge loan tied to the deal. This is a financing step for Fox rather than a new Roku operating update, but investors may monitor its effect on the combined company’s financial flexibility. Fox launches bond sale to repay bridge loan
• Negative Sentiment: A popular aquarium screensaver is being removed. The change may disappoint some users, but it appears to be a limited product issue with no clear material effect on Roku’s financial outlook. A fan-favorite aquarium screen saver is leaving Roku

Roku Stock Down 0.5%

Roku stock opened at $159.65 on Wednesday. The business’s 50-day moving average price is $155.43 and its 200 day moving average price is $129.46. The firm has a market cap of $23.69 billion, a price-to-earnings ratio of 47.23 and a beta of 2.12. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $163.57.

Roku (NASDAQ:ROKU) last released its quarterly earnings data on Monday, November 2nd. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $0.55 by $0.65. Roku had a return on equity of 18.65% and a net margin of 9.34%. The business had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the prior year, the firm posted $0.16 EPS. The business’s quarterly revenue was up 24.1% compared to the same quarter last year. Equities analysts expect that Roku, Inc. will post 3.17 EPS for the current year.

Insider Activity

In related news, insider Mustafa Ozgen sold 3,410 shares of the stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $530,732.40. Following the sale, the insider directly owned 25,569 shares of the company’s stock, valued at approximately $3,979,559.16. This represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Dan Jedda sold 7,000 shares of the stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $156.81, for a total transaction of $1,097,670.00. Following the sale, the chief financial officer directly owned 74,811 shares in the company, valued at $11,731,112.91. This trade represents a 8.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 88,028 shares of company stock worth $13,645,922. 13.45% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

ROKU has been the topic of several research analyst reports. Citigroup boosted their price target on Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a research note on Friday, July 17th. Wedbush dropped coverage on Roku in a research note on Tuesday. They issued a “neutral” rating for the company. Seaport Research Partners cut Roku from a “buy” rating to a “neutral” rating in a research note on Friday, August 7th. UBS Group lifted their target price on Roku from $126.00 to $172.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. Finally, BMO Capital Markets upgraded Roku from a “market perform” rating to an “outperform” rating in a research report on Tuesday, November 3rd. One research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and seventeen have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $156.22.

Roku Company Profile

Roku, Inc. provides a streaming platform that connects viewers with television and other digital video content. Its products include streaming players and Roku-branded televisions, as well as the Roku operating system, which the company licenses to television manufacturers. Roku also operates a platform business that supports streaming services and advertisers. Its offerings include the Roku Channel, an ad-supported streaming service, and tools for distributing content and delivering advertising to viewers.