Wellington Management Group Reduces Stake in Roku, Inc.

Wellington Management Group LLP has decreased its holdings in Roku, Inc. (NASDAQ:ROKU) by 4.8% in the third quarter of the year. According to reports, the investment firm now possesses 9,125 shares of Roku after selling 462 shares during this period. At the close of the recent reporting period, Wellington Management’s total investment in Roku was valued at approximately $681,000.

In addition to Wellington Management, several other hedge funds and institutional investors have also changed their positions in Roku. Kessler Investment Group LLC increased its stake by 21.8%, acquiring an additional 13,590 shares to reach a total of 75,968 shares, valued at $5,672,000. Another notable investment firm, Holocene Advisors LP, entered a new position in Roku worth around $129,015,000 during the third quarter. Furthermore, EULAV Asset Management raised its investment in Roku by 59.1%, resulting in ownership of 183,000 shares, valued at $13,663,000 after adding 68,000 shares during the last quarter. Other firms such as Granite Bay Wealth Management LLC and Mackenzie Financial Corp also acquired new stakes in Roku, valued at approximately $1,142,000 and $662,000, respectively. A total of 86.30% of Roku’s shares are now owned by hedge funds and institutional investors.

Roku Stock Performance

On the stock market, Roku shares opened at $80.59 on a Friday. The stock has experienced a twelve-month low of $48.33 and a high of $99.80. Currently, the fifty-day moving average stands at $75.32, and the 200-day moving average is $67.71. Roku has a market capitalization of about $11.70 billion, along with a P/E ratio of -67.16 and a beta of 2.06.

Roku recently released its quarterly earnings on October 30th, where it reported an earnings per share (EPS) of ($0.06) for the quarter, surpassing analysts’ predictions of ($0.35) by a substantial margin. The company’s revenue for the quarter was reported at $1.06 billion, exceeding expectations of $1.02 billion. However, Roku experienced a net margin of -4.42% and a return on equity at -7.22%. Compared to the previous year, the revenue saw a year-over-year increase of 16.5%. Analysts project that Roku, Inc. will post -1.1 earnings per share for the current fiscal year.

Insider Trading Activity

In recent insider trading news, Chief Accounting Officer Matthew C. Banks sold 8,693 shares of Roku stock on November 18th. The shares were sold at an average price of $71.44, totaling approximately $621,027.92. After the sale, Banks now holds 7,264 shares valued at about $518,940.16, reflecting a 54.48% drop in their position. Additionally, insider Charles Collier sold 10,771 shares on the same day at an average price of $71.14, resulting in total sales of around $766,248.94. Post-transaction, Collier owns 3,790 shares valued at about $269,620.60, marking a 73.97% decline in position. Over the last quarter, insiders have sold 73,096 shares of Roku worth approximately $5,661,223, and corporate insiders currently own 13.98% of the company’s shares.

Analyst Ratings and Price Targets

Roku has garnered attention in multiple research reports, with Rosenblatt Securities raising its price target on Roku shares from $61.00 to $86.00 while maintaining a “neutral” rating as of October 31st. UBS Group also began coverage on Roku, setting a “neutral” rating with a price target of $73.00. Baird R W upgraded Roku from a “hold” to a “strong-buy” rating on November 18th. Meanwhile, Morgan Stanley adjusted their target price from $60.00 to $65.00, issuing an “underweight” rating for the stock. Wedbush reaffirmed an “outperform” rating and increased its price target from $85.00 to $100.00 on December 6th. Currently, the stock ratings include two sell ratings, nine hold ratings, twelve buy ratings, and one strong buy rating. MarketBeat data indicates that Roku has an average rating of “Moderate Buy” with an average target price of $83.81.

About Roku, Inc.

Roku, Inc. operates a television streaming platform available both domestically and internationally. The company is divided into two segments: Platform and Devices. Its streaming platform allows users to access a wide variety of TV shows, movies, news, sports, and more. The Platform segment includes offerings related to digital advertising, media and entertainment promotional spending, streaming service distribution, and subscription revenue shares.

Roku, Wellington, Investment