Citigroup Inc. Increases Stake in Roku, Inc. by 73%

Citigroup Inc. has strengthened its investment in Roku, Inc. (NASDAQ:ROKU) by 73.0% during the third quarter, as reported in its latest filing with the Securities and Exchange Commission (SEC). After acquiring an additional 42,837 shares during this period, Citigroup now holds a total of 101,529 shares. This increase represents approximately 0.07% ownership of Roku, which is valued at $7,580,000 as of the end of the latest reporting period.

Impact of Institutional Investors

A handful of other institutional investors and hedge funds have also adjusted their positions in Roku. For instance, Price T Rowe Associates Inc. MD enhanced its share of Roku by 4.6% in the first quarter, bringing its total to 71,174 shares worth $4,640,000 after purchasing an additional 3,104 shares. Similarly, Swedbank AB acquired a newfound position in Roku valued at $1,180,000 during the same quarter. Cetera Investment Advisers ramped up its holdings significantly by 240.3%, now owning 41,805 shares worth $2,724,000 after adding 29,521 shares recently. DekaBank Deutsche Girozentrale also increased its stake by 2.9%, and Versant Capital Management Inc. made a dramatic increase of 706.2%, bringing its holdings to 911 shares valued at $55,000.

Overall, hedge funds and other institutional investors hold 86.30% of Roku's stock.

Insider Trading Activity

In recent insider trading news regarding Roku, insider Charles Collier sold 15,454 shares on September 12th. The shares were sold at an average price of $75.00, totaling $1,159,050. After this sale, Collier's ownership dropped significantly to just 200 shares valued at $15,000. Additionally, CEO Anthony J. Wood sold 25,000 shares on October 10th at an average price of $77.20 for a total of $1,930,000. Following this transaction, Wood now directly owns 5,020 shares valued at $387,544, reflecting an 83.28% reduction in his holdings. In the past three months, insiders have sold 90,240 shares worth $6,729,582, and insiders collectively own 13.98% of the company's stock.

Roku's Stock Performance Overview

Roku shares opened at $69.03 on Friday. The company's stock has experienced a 52-week range with a low of $48.33 and a high of $108.84. Roku currently has a market capitalization of $10.02 billion, a price-to-earnings ratio of -57.53, and a beta of 2.07. Recent moving averages show 50 days at $73.63 and 200 days at $65.36. The most recent earnings report for Roku was issued on October 30th, where it reported a loss of ($0.06) earnings per share for the quarter, surpassing the consensus estimate of ($0.35) by $0.29. Roku's revenue for the quarter reached $1.06 billion, outperforming analysts' expectations of $1.02 billion, and is a 16.5% increase compared to the same quarter last year.

Changes in Analyst Ratings

Several analysts have provided updates on Roku's stock. Jefferies Financial Group lowered its target price from $60.00 to $55.00, indicating an "underperform" rating. Conversely, Wells Fargo & Company increased its price target from $72.00 to $74.00, assigning an "equal weight" rating. JPMorgan Chase & Co. raised its target from $90.00 to $92.00 while giving it an "overweight" rating. Rosenblatt Securities increased its price target from $61.00 to $86.00 and gave a "neutral" rating. Wolfe Research upgraded its rating from "peer perform" to "outperform" with a target price of $93.00. Overall, the stock has a mix of ratings, with two hold ratings, nine sell ratings, twelve buy ratings, and one strong buy rating. As of now, according to MarketBeat, Roku possesses an average rating of "Moderate Buy" with a consensus target price sitting at $82.62.

About Roku

Roku, Inc. functions alongside its subsidiaries to manage a TV streaming platform available in the United States and internationally. The company is divided into two segments: Platform and Devices. Roku’s streaming platform enables users to discover and access TV shows, movies, sports, and more. Their Platform segment encompasses digital advertising—including direct and programmatic video ads, media promotions, and other services—as well as revenue sharing from subscription and transaction services and selling premium subscriptions alongside branded app buttons on remote controls.

Citigroup, Roku, Investments