Steven Cohen (Trades, Portfolio), founder of Point72 Asset Management, disclosed this week he established a 5.1% stake in Roku Inc. (ROKU, Financial) on April 13.
According to GuruFocus real-time picks, Cohen picked up 2.18 million shares of the Los Gatos, California-based company, which went public last fall, for an average price of $32.69 per share, giving it 0.31% portfolio space.
The company, which manufactures a variety of TV streaming devices, has a market cap of $3.59 billion; its shares were trading around $35.87 on Tuesday with a price-earnings ratio of 15.53, a price-book ratio of 23.04 and a price-sales ratio of 1.37.
Roku’s shares surged more than 8% on Tuesday morning after it announced on Monday it had inked a deal with Disney’s (DIS, Financial) ESPN to stream its new direct-to-consumer channel on the platform.
Since its initial public offering on Sept. 28, GuruFocus estimates the stock has gained 55%. Year to date, however, it is down approximately 31%.
Roku’s financial strength was rated 6 out of 10 by GuruFocus, boosted by its strong Altman Z-Score of 9.28 and no debt.
The company’s profitability and growth, however, did not fare as well, registering a 2 out of 10 rating as its operating margin, which is negative, underperforms 79% of competitors.
With his purchase, Cohen became the company’s largest guru shareholder. PRIMECAP Management (Trades, Portfolio) also owns the stock.
Cohen founded Point72, a family office, in 2014 after his former hedge fund, S.A.C. Capital Advisors, was closed following an insider trading investigation. The firm invests using long, short, macro and systematic strategies.
His current portfolio of 876 stocks is largely composed of securities in the consumer cyclical sector. Additional companies in the communication services industry, of which Roku is part, Cohen is invested in include Comcast Corp. (CMCSA, Financial), Verizon Communications Inc. (VZ, Financial), T-Mobile US Inc. (TMUS, Financial), Liberty Global PLC (LBTYK, Financial) and Altice USA Inc. (ATUS, Financial), among others.
Disclosure: No positions.
