Roku Inc. (ROKU) Is A Stock You Should Watch


As of Wednesday close, Roku Inc.’s (NASDAQ:ROKU) stock was up $2.15, moving up 3.96 percent to $56.51. The average number of shares traded per day over the past five days has been 4,277,300 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.37 fall in that time frame. In the last twenty days, the average volume was 9,962,570, while in the previous 50 days, it was 9,420,353.

Since last month, ROKU stock rose 2.11%. Shares of the company fell to $44.50 on 11/03/22, the lowest level in the past month. A 52-week high of $266.05 was reached on 01/03/22 after having rallying from a 52-week low of $44.50. Since the beginning of this year, ROKU’s stock price has dropped by -75.24% or -$171.69, and marked a new high 1 time. However, the stock has declined by -78.76% since its 52-week high.

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ROKU stock investors should be aware that Roku Inc. (ROKU) stock had its last reported insider trading activity 9 days ago on Nov 16. KAY STEPHEN H, the SVP General Counsel, Secretary of the company, disposed of 1,469 shares for $56.46 on Nov 16. It resulted in a $82,940 divestment by the insider. Fuchsberg Gilbert sold 3,300 shares at an average price of $56.46 on Nov 16. The insider now owns 34,685 shares following the transaction. On Nov 16, President, Devices Ozgen Mustafa sold 8,970 shares at $56.46 apiece. The transaction was valued at $506,446.

Valuation Metrics

The stock’s beta is 1.52. Besides these, the trailing price-to-sales (P/S) ratio of 2.55, the price-to-book (PB) ratio of 2.82.

Financial Health

In the three months ended June 29, Roku Inc.’s quick ratio stood at 3.00, while its current ratio was 3.10, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 46.60% percent. In the year ended June 29, operating margins totaled -8.30%. Based on annual data, ROKU earned $1.41 billion in gross profit and brought in $2.76 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 8.40%. Return on equity (ROE) for the past 12 months was -8.50%.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ROKU’s revenue rose 10.69% to $764.41 million during the quarter, while net income inched up to $761.37 million. While analysts expected Roku Inc. to report -$0.69 quarterly earnings, the actual figure was -$0.82 per share, beating the consensus estimate by -18.80%. During the quarter, the company generated -$55.73 million in EBITDA. The liabilities of Roku Inc. were 1.61 billion at the end of its most recent quarter ended June 29, and its total debt was $721.32 million. The value of shareholders’ equity is $139.27 million.

Technical Picture

This quick technical analysis looks at Roku Inc.’s (ROKU) price momentum. With a historical volatility rate of 68.38%, the RSI 9-day stood at 54.21% on 23 November.

With respect to its five-day moving average, the current Roku Inc. price is down by -0.65% percent or -$0.37. At present, ROKU shares trade +7.43% above its 20-day simple moving average and -38.62% percent below its 100-day simple moving average. However, the stock is currently trading approximately -17.32% below its SMA50 and -63.74% below its SMA200.

Stochastic coefficient K was 57.14% and Stochastic coefficient D was 58.68%, while ATR was 3.73. Given the Stochastic reading of 62.67% for the 14-day period, the RSI (14) reading has been calculated as 51.99%. As of today, the MACD Oscillator reading stands at -2.09, while the 14-day reading stands at 0.05.

Analyst Ratings

Jefferies launched its rating on Roku Inc. (NASDAQ: ROKU) to a Hold in a note to investors on November 11, 2022. Roku Inc. (ROKU) has been rated Overweight by analysts. According to 4 brokerage firms, ROKU is a sell, and 10 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 1 analyst rate Roku Inc. stock as buy, with 13 recommending it as overweight.

With a median target price of $57.00, the current consensus forecast for the stock is $38.00 – $90.00. Based on these forecasts, analysts predict Roku Inc. (ROKU) will achieve an average price target of $59.79.


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