Ark Invest CEO and investment lead Cathie Wood said earlier in the month that when Tesla (TSLA) -) is outperforming the other stocks in a given portfolio, Ark will sell shares to boost its holdings in other names.
For the past month, Ark has been employing the same mentality with its Roku (ROKU) -) holding.
Ark's flagship Innovation ETF sold $14 million worth of Roku stock on Nov. 7, another $21 million worth of the stock on Nov. 9 and a further $21.1 million worth of the stock on Nov. 14. The sell-off constituted a trimming of more than half a million shares.
Related: Meet the biotech company Cathie Wood bought half a million shares of this month
Wood continued the sell-off on Monday, dumping 136,337 shares of Roku, worth roughly $14 million. Ark Innovation's total Roku holding, worth $675.8 million, now constitutes 7.2 million shares and is weighted at 8.72% of the fund.
The portfolio is still dominated by Ark's holdings in Coinbase (COIN) -), Tesla (TSLA) -) and Roku, which together make up more than 27% of the fund.
This latest round of trimming comes on the heels of a recent spike in Roku shares; the company's stock jumped more than 8% Monday on the release of a bullish new price target from Cannonball Research. The stock opened Tuesday's session strong, hitting a new 52-week high of $106.20 before stabilizing slightly at $104.
Cannonball analyst Vasily Karasyov, with a new $116 price target, upgraded Roku's stock to buy from neutral over the weekend.
Karasyov expects to see upside from Roku even if the ad market doesn't improve in 2024.
Related: Cathie Wood explains why Tesla Chief Elon Musk is worth betting so much on
"Estimates for [fiscal 2024] appear to be doable with room for upside if trends don't deteriorate," he wrote. "The strikes in Hollywood are over which should not only help the reported numbers but improve the Street's conviction in the outlook."
Karasyov expects the company to see $3.2 billion in platform revenue for 2024, part of a model that "implies video advertising revenue growth of 17.5% and other platform revenue declines of 7.7%."
The company reported $912 million in revenue for the third quarter, a 20% year-over-year increase that came in above analyst expectations of $855 million.
Ark Invest wrote in 2022 that the firm's base case scenario for Roku has the stock trading at $605 by 2026. Ark's bull case expects to see the stock trading at $1,493 by 2026, and the firm's bear case price target is pegged at $100. Ark Invest assigned a 25% probability to both its bear and bull theses.
The average analyst price target for the stock is $85.
Though still far below Pandemic-era levels, shares of Roku are up more than 150% for the year.
Related: Cathie Wood explains why she cut Ark's Tesla holding
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