Royal Bank of Canada Cuts Stock Holdings in Roku, Inc. $ROKU

Royal Bank of Canada lowered its stake in Roku, Inc. (NASDAQ:ROKU) by 11.6% during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 200,961 shares of the company’s stock after selling 26,378 shares during the quarter. Royal Bank of Canada’s holdings in Roku were worth $19,015,000 as of its most recent SEC filing.

A number of other institutional investors have also recently made changes to their positions in the company. Blue Trust Inc. increased its holdings in shares of Roku by 680.0% in the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after purchasing an additional 204 shares during the last quarter. Bayban boosted its stake in Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after buying an additional 260 shares during the last quarter. WPG Advisers LLC purchased a new position in Roku during the 4th quarter valued at approximately $31,000. Safe Harbor Fiduciary LLC purchased a new position in Roku during the 4th quarter valued at approximately $31,000. Finally, Osbon Capital Management LLC bought a new stake in Roku in the 4th quarter worth approximately $45,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku Stock Up 2.1%

NASDAQ ROKU opened at $150.07 on Friday. Roku, Inc. has a 52 week low of $78.53 and a 52 week high of $150.61. The firm has a market capitalization of $22.12 billion, a price-to-earnings ratio of 112.84 and a beta of 2.01. The company has a fifty day moving average of $137.93 and a two-hundred day moving average of $116.04.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported adjusted earnings of $1.08 per share, well above the approximately $0.60–$0.61 analyst consensus, while revenue rose 21.9% year over year to $1.35 billion, exceeding estimates of about $1.30 billion. Net income reached $164 million, compared with $0.07 per share in the year-ago quarter. Reuters earnings report
• Positive Sentiment: The revenue beat was driven by strength in advertising and subscriptions, reinforcing Roku’s platform business as its primary growth engine and supporting the investment case for its streaming ecosystem. Yahoo Finance advertising and subscriptions report
• Positive Sentiment: The results arrive ahead of Fox Corporation’s planned $22 billion acquisition of Roku, potentially increasing investor confidence in the strategic value of Roku’s streaming distribution platform. Roku second-quarter results release
• Neutral Sentiment: Because the Fox transaction is pending, Roku did not hold an earnings call or provide financial guidance. This limits visibility into the company’s standalone outlook and makes the acquisition terms and closing timeline more important to shareholders. Benzinga earnings coverage
• Negative Sentiment: Several insiders, including President Charles Collier, Director Neil Hunt and Chief Accounting Officer Matthew Banks, recently sold shares under pre-arranged Rule 10b5-1 plans. The sales may create modest sentiment pressure, although they were scheduled transactions rather than clear discretionary signals. Roku insider sale report

Insider Transactions at Roku

In related news, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $146.25, for a total transaction of $292,500.00. Following the completion of the transaction, the director directly owned 9,629 shares of the company’s stock, valued at approximately $1,408,241.25. The trade was a 17.20% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 552 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $146.25, for a total transaction of $80,730.00. Following the transaction, the chief accounting officer owned 6,619 shares in the company, valued at $968,028.75. The trade was a 7.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 226,733 shares of company stock worth $29,862,532. 13.45% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on ROKU. Citigroup upped their price objective on Roku from $120.00 to $157.00 and gave the stock a “neutral” rating in a report on Friday, July 17th. Robert W. Baird restated a “neutral” rating and issued a $160.00 price target on shares of Roku in a research report on Monday, June 15th. Rosenblatt Securities upped their price target on shares of Roku from $150.00 to $160.00 and gave the company a “buy” rating in a research note on Tuesday, June 16th. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $160.00 price objective (up from $150.00) on shares of Roku in a research report on Tuesday, June 16th. Finally, William Blair cut shares of Roku from an “outperform” rating to a “market perform” rating in a research note on Monday, June 15th. Ten research analysts have rated the stock with a Buy rating and seventeen have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Roku presently has a consensus rating of “Hold” and a consensus target price of $155.12.

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.