Roku, Inc. (NASDAQ:ROKU) Shares Sold by ARK Investment Management LLC

Key Points

• ARK Investment Management LLC has reduced its stake in Roku, Inc. by 19.0%, now owning 8,642,048 shares, which is approximately 6.0% of its portfolio.
• Roku reported a quarterly revenue of $1.02 billion, exceeding analyst estimates and reflecting a 15.8% year-over-year increase.
• Several analysts have recently set target prices for Roku shares, with prices adjusted between $72.00 and $130.00, indicating mixed sentiments about the stock's future performance.

ARK Investment Management LLC lowered its stake in Roku, Inc. (NASDAQ:ROKU - Free Report) by 19.0% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 8,642,048 shares of the company's stock after selling 2,029,908 shares during the quarter. Roku comprises about 6.0% of ARK Investment Management LLC's portfolio, making the stock its 2nd biggest holding. ARK Investment Management LLC owned about 5.92% of Roku worth $608,746,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently bought and sold shares of the stock. United Advisor Group LLC boosted its position in shares of Roku by 0.9% during the fourth quarter. United Advisor Group LLC now owns 14,430 shares of the company's stock worth $1,073,000 after buying an additional 130 shares during the period. Cerity Partners LLC lifted its stake in Roku by 0.5% during the 4th quarter. Cerity Partners LLC now owns 26,679 shares of the company's stock worth $1,984,000 after acquiring an additional 145 shares in the last quarter. Smith Group Asset Management LLC boosted its holdings in Roku by 2.8% during the 1st quarter. Smith Group Asset Management LLC now owns 7,390 shares of the company's stock valued at $521,000 after acquiring an additional 200 shares during the period. Golden State Wealth Management LLC grew its position in Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after acquiring an additional 247 shares in the last quarter. Finally, Itau Unibanco Holding S.A. increased its stake in Roku by 95.5% during the fourth quarter. Itau Unibanco Holding S.A. now owns 569 shares of the company's stock worth $42,000 after purchasing an additional 278 shares during the period. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Stock Performance

ROKU opened at $90.12 on Friday. Roku, Inc. has a one year low of $48.33 and a one year high of $104.96. The stock has a market capitalization of $13.15 billion, a P/E ratio of -123.45 and a beta of 2.12. The business's 50-day simple moving average is $81.78 and its 200-day simple moving average is $76.60.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.27) by $0.08. Roku had a negative return on equity of 4.29% and a negative net margin of 2.49%. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the business posted ($0.35) EPS. The firm's quarterly revenue was up 15.8% compared to the same quarter last year. On average, equities research analysts forecast that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insider Transactions at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the company's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $89.64, for a total value of $2,241,000.00. Following the completion of the sale, the chief executive officer owned 11,953 shares in the company, valued at $1,071,466.92. This represents a 67.65% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Dan Jedda sold 3,000 shares of the stock in a transaction on Tuesday, July 15th. The stock was sold at an average price of $90.20, for a total transaction of $270,600.00. Following the sale, the chief financial officer owned 76,132 shares of the company's stock, valued at approximately $6,867,106.40. This represents a 3.79% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 309,079 shares of company stock worth $28,091,399. Insiders own 13.98% of the company's stock.

Analyst Upgrades and Downgrades

ROKU has been the subject of several recent research reports. UBS Group lowered their price objective on shares of Roku from $90.00 to $72.00 and set a "neutral" rating for the company in a research note on Tuesday, April 15th. Rosenblatt Securities reduced their target price on shares of Roku from $100.00 to $75.00 and set a "neutral" rating on the stock in a report on Friday, May 2nd. Benchmark restated a "buy" rating and issued a $130.00 price target on shares of Roku in a research note on Friday, May 2nd. Wells Fargo & Company reduced their price objective on Roku from $129.00 to $93.00 and set an "overweight" rating on the stock in a research note on Monday, April 28th. Finally, FBN Securities began coverage on Roku in a research note on Friday, March 28th. They set an "outperform" rating and a $93.00 target price for the company. One analyst has rated the stock with a sell rating, seven have assigned a hold rating, eighteen have issued a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat.com, Roku currently has a consensus rating of "Moderate Buy" and a consensus price target of $93.92.

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.

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