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

Citigroup Inc. increased 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 42,837 additional shares during this period, Citigroup now holds a total of 101,529 shares of Roku. This stake represents approximately 0.07% of Roku, valued at $7,580,000 as of the last reporting period.

Other institutional investors and hedge funds have also made adjustments to their holdings in Roku recently. For example, Price T Rowe Associates Inc. MD boosted its stake by 4.6% in the first quarter, now owning 71,174 shares worth $4,640,000 after adding 3,104 shares. Swedbank AB initiated a new position in Roku valued at $1,180,000 during the same quarter. Additionally, Cetera Investment Advisers raised its holdings by an impressive 240.3%, now possessing 41,805 shares valued at $2,724,000 after acquiring 29,521 extra shares. DekaBank Deutsche Girozentrale also increased its position by 2.9% to hold 15,408 shares worth $1,007,000. Versant Capital Management Inc. raised its holdings significantly by 706.2% in the second quarter, now owning 911 shares of Roku valued at $55,000. It is noteworthy that institutional investors together own around 86.3% of Roku's stock.

Insider Transactions at Roku

In recent developments regarding insider activity at Roku, Charles Collier, an insider, sold 15,454 shares on September 12th at an average price of $75.00, amounting to a total of $1,159,050. After this sale, Collier's remaining shares in Roku dropped to 200, valued at $15,000, indicating a 98.72% reduction in their ownership. This transaction was duly reported on the SEC website. Additionally, CEO Anthony J. Wood sold 25,000 shares on October 10th at an average price of $77.20, resulting in a total transaction of $1,930,000. Following this sale, Wood now owns 5,020 shares valued at $387,544, representing an 83.28% decrease in his ownership stake. In the past three months, insiders have sold a total of 90,240 shares worth about $6,729,582, with insiders retaining 13.98% of the company's stock.

Roku Stock Overview

As of Friday, Roku's stock opened at $69.03. The company has recorded a year-low of $48.33 and a year-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. The stock's 50-day moving average price is $73.63, while the 200-day moving average price is $65.36.

Roku last announced its earnings on October 30th, reporting earnings per share of ($0.06), outperforming the consensus estimate of ($0.35) by $0.29. The company had a negative return on equity of 7.22% and a negative net margin of 4.42%. Its revenue for the quarter reached $1.06 billion, surpassing analysts' expectations of $1.02 billion. This revenue reflects a 16.5% increase compared to the same quarter last year. Analysts predict that Roku, Inc. will post earnings of -1.1 per share for the current year.

Analyst Ratings Updates

Several analysts have recently reviewed Roku’s stock. Jefferies Financial Group decreased their price target for Roku from $60.00 to $55.00, giving it an “underperform” rating as of November 1st. Conversely, Wells Fargo & Company raised its price target from $72.00 to $74.00, assigning an “equal weight” rating on October 31st. JPMorgan Chase & Co. increased the price target from $90.00 to $92.00, while maintaining an “overweight” rating on October 10th. Rosenblatt Securities also raised their price objective for Roku from $61.00 to $86.00, retaining a “neutral” rating as of October 31st. Wolfe Research upgraded Roku from a “peer perform” rating to an “outperform” rating with a target price of $93.00 in a report on September 12th. Overall, two analysts have issued a sell rating, nine have recommended holding the stock, twelve analysts have given it a buy rating, and one has assigned a strong buy rating. According to MarketBeat, Roku holds an average rating of “Moderate Buy” with a consensus target price of $82.62.

About Roku

Roku, Inc. operates a TV streaming platform in the United States and internationally, through its subsidiaries. The company is divided into two segments: Platform and Devices. The streaming platform enables users to locate and access various TV shows, movies, news, and sports content. The Platform segment provides digital advertising, including direct and programmatic video ads, media promotions, and services related to streaming services distribution, such as revenue shares from subscriptions and transactions.

Citigroup, Roku, Stock