ARK Investment Management LLC Reduces Holdings in Roku, Inc. $ROKU

Key Points

• ARK Investment Management LLC reduced its holdings in Roku, Inc. by 2.1%, now owning 8,460,078 shares, which constitutes 5.5% of its overall portfolio.
• In the second quarter, Roku's stock price was reported at $97.49 with a market cap of $14.36 billion, and its quarterly revenue reached $1.11 billion, surpassing expectations.
• Equities analysts vary in ratings for Roku, with an average rating of "Moderate Buy" and a consensus price target of $101.33.

ARK Investment Management LLC lowered its stake in shares of Roku, Inc. (NASDAQ:ROKU - Free Report) by 2.1% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 8,460,078 shares of the company's stock after selling 181,970 shares during the quarter. Roku comprises 5.5% of ARK Investment Management LLC's holdings, making the stock its 3rd largest holding. ARK Investment Management LLC owned 5.80% of Roku worth $743,556,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Roku by 2.1% during the first quarter. Vanguard Group Inc. now owns 12,503,595 shares of the company's stock valued at $880,753,000 after purchasing an additional 254,504 shares in the last quarter. Acadian Asset Management LLC raised its stake in Roku by 456.7% in the first quarter. Acadian Asset Management LLC now owns 1,905,779 shares of the company's stock valued at $134,222,000 after buying an additional 1,563,449 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its stake in Roku by 21.9% in the first quarter. Jacobs Levy Equity Management Inc. now owns 1,581,097 shares of the company's stock valued at $111,372,000 after buying an additional 284,323 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Roku by 3.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 1,028,332 shares of the company's stock valued at $72,436,000 after buying an additional 37,465 shares during the last quarter. Finally, Northern Trust Corp raised its stake in Roku by 6.0% in the first quarter. Northern Trust Corp now owns 755,762 shares of the company's stock valued at $53,236,000 after buying an additional 42,926 shares during the last quarter. Institutional investors own 86.30% of the company's stock.

Roku Stock Up 1.3%

Shares of NASDAQ:ROKU opened at $97.49 on Wednesday. Roku, Inc. has a 52-week low of $52.43 and a 52-week high of $107.25. The stock has a market cap of $14.36 billion, a price-to-earnings ratio of -232.12, a PEG ratio of 11.35 and a beta of 2.13. The business has a 50-day moving average price of $96.56 and a 200-day moving average price of $83.09.

Roku (NASDAQ:ROKU - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.16) by $0.23. Roku had a negative return on equity of 2.44% and a negative net margin of 1.40%.The firm had revenue of $1.11 billion during the quarter, compared to analysts' expectations of $1.07 billion. During the same period last year, the business posted ($0.18) earnings per share. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. Roku has set its Q3 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, equities analysts anticipate that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities research analysts have commented on ROKU shares. KeyCorp increased their price target on Roku from $115.00 to $116.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Guggenheim increased their price target on Roku from $100.00 to $105.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Wall Street Zen upgraded Roku from a "hold" rating to a "buy" rating in a research note on Sunday. UBS Group increased their price target on Roku from $72.00 to $95.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Finally, Wedbush reiterated an "outperform" rating and issued a $100.00 price target on shares of Roku in a research note on Monday, July 28th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Roku has an average rating of "Moderate Buy" and a consensus price target of $101.33.

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of Roku stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $100.00, for a total transaction of $2,500,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mustafa Ozgen sold 50,527 shares of Roku stock in a transaction that occurred on Tuesday, September 9th. The shares were sold at an average price of $100.00, for a total value of $5,052,700.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 328,331 shares of company stock worth $32,640,556. 13.98% of the stock is owned by corporate insiders.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.

Want to see what other hedge funds are holding ROKU? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Roku, Inc. (NASDAQ:ROKU - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.