Shares of Roku (NASDAQ:ROKU), which provides streaming and related audio devices and smart TVs, are down more than 29% year-to-date. Concerns over its average revenue per user (ARPU) and competitive headwinds from Walmart’s (NYSE:WMT) acquisition of Vizio remained a drag. As Roku stock is under pressure, it’s the right time to delve into its ownership structure.
Now, according to TipRanks’ ownership page, other institutional investors own 52.17% of ROKU. They are followed by public companies and individual investors, mutual funds, and insiders at 21.24%, 20.81%, and 5.78%, respectively.
Digging Deeper into Roku’s Ownership Structure
Looking closely at institutions (Mutual Funds and Other Institutional Investors), ARK owns a 9.01% stake in ROKU stock. Next up is Vanguard, which holds an 8.99% stake in the company.
Among the institutions, the Hedge Fund Confidence Signal is Very Negative on Roku stock based on the activity of 10 hedge funds. Hedge funds decreased their ROKU holdings by 1 million shares in the last quarter.
Meanwhile, individual investors have a Positive view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding ROKU stock increased by 8.5%. Overall, among the 719,844 portfolios monitored by TipRanks, 0.7% have invested in ROKU stock.
Is Roku a Buy or Sell?
Analysts remain sidelined on ROKU stock given the competitive headwinds and its expansion into the low-ARPU international market.
It has eight Buy, 10 Hold, and three Sell recommendations for a Hold consensus rating. Analysts’ average price target on ROKU stock is 86.47, implying 33.73% upside potential over the next 12 months.
Conclusion
TipRanks’ Ownership tool provides ROKU ownership structure by category, enabling investors to make well-informed investing decisions.
