Wellington Management Group Sells Roku, Inc. Shares

Wellington Management Group LLP has reduced its investment in Roku, Inc. (NASDAQ:ROKU) by 4.8% in the third quarter, according to reports from Holdings Channel. After selling 462 shares during this period, the fund now holds 9,125 shares of Roku, valued at approximately $681,000 as of the latest reporting.

Other institutional investors have also made changes to their positions in Roku. For example, Kessler Investment Group LLC increased its stake by 21.8%, acquiring an additional 13,590 shares for a total of 75,968 shares worth roughly $5,672,000. Additionally, Holocene Advisors LP entered the market with a new position valued at around $129 million. EULAV Asset Management raised its stake by 59.1%, increasing its total shares to 183,000, which are worth about $13.7 million. Other firms, like Granite Bay Wealth Management LLC and Mackenzie Financial Corp, also purchased new stakes in the company. Currently, institutional investors hold an impressive 86.3% of Roku's shares.

Roku Stock Performance

As of Friday, Roku shares opened at $80.59. Over the past year, the stock has seen a low of $48.33 and a high of $99.80. The average price over the last fifty days sits at $75.32, while the 200-day average is $67.71. Roku has a market capitalization of $11.7 billion, with a P/E ratio of -67.16 and a beta of 2.06.

Roku recently announced its quarterly earnings on October 30, reporting a loss of $0.06 per share, which exceeded analysts' predictions of a $0.35 loss. The company's revenue for that quarter was $1.06 billion, surpassing estimates of $1.02 billion, marking a 16.5% year-over-year increase. This significant growth contrasts with the previous year's earnings per share of -$2.33. Analysts predict an EPS of -1.1 for the current fiscal year.

Insider Trading Information

In related news, Chief Accounting Officer Matthew C. Banks sold 8,693 shares on November 18 for about $621,000, resulting in a 54.48% decrease in his position. Another insider, Charles Collier, sold 10,771 shares the same day, totaling approximately $766,000, which decreased his ownership by 73.97%. In total, insiders sold 73,096 shares worth around $5.66 million in the last quarter, leaving corporate insiders holding 13.98% of the company's stock.

Analysts Update Price Targets

Roku has attracted attention from various analysts lately. Rosenblatt Securities raised its price target from $61 to $86 with a neutral rating. UBS Group initiated coverage with a neutral rating and set a target at $73. Baird R W upgraded Roku from hold to strong buy, and Morgan Stanley increased its target from $60 to $65, maintaining an underweight rating. Also, Wedbush reiterated an outperform rating, increasing its price target from $85 to $100. An overview of market sentiment shows two analysts assigning a sell rating, while nine hold, twelve buy, and one strong buy ratings have also been given. On average, Roku holds a “Moderate Buy” rating with a target price around $83.81.

About Roku, Inc.

Roku, Inc. operates a popular TV streaming platform in the United States and internationally. It has two main segments: Platform and Devices. The platform serves users by providing access to various entertainment options including TV shows, movies, and news. Additionally, it offers digital advertising services and manages revenues from subscriptions and premium content.

Roku, Wellington, Investments