A Technical View of the Roku Inc. (ROKU)


Roku Inc. (NASDAQ:ROKU) saw an upside of 4.29% to close Monday at $54.64 after adding $2.25 on the day. The 5-day average trading volume is 5,358,840 shares of the company’s common stock. It has gained $55.39 in the past week and touched a new high 4 times within the past 5 days. An average of 6,078,270 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,391,528.

ROKU’s 1-month performance is 27.07% or $13.29 on its low of $38.26 reached on 12/28/22. The company’s shares have touched a 52-week low of $38.26 and high of $177.96, with the stock’s rally to the 52-week high happening on 01/23/23. YTD, ROKU has achieved 34.25% or $13.94 and has reached a new high 13 times. However, the current price is down -69.30% from the 52-week high price.

Top 5 Undervalued Stocks To Own In 2023

Microchip Maker Releases "World's Most Powerful Data Center CPU". It could allow the company who manufactures it to lead the industry as the global microchip shortage continues into the coming year. We've put together a free research report that explains all the details. Not only will you find out why analysts believe this chip manufacturer could lead the pack, you will also discover four more potential winners for the coming year.

Click here to download your Free Research Report…


Insider Transactions

ROKU stock investors last saw insider trading activity on Dec 01.Fuchsberg Gilbert (SVP, Corporate Development) most recently sold 2,040 shares at $59.16 per share on Dec 01. This transaction cost the insider $120,686. SVP General Counsel, Secretary, KAY STEPHEN H, sold 1,469 shares at a price of $56.46 on Nov 16. Then, on Nov 16, SVP, Corporate Development Fuchsberg Gilbert sold 3,300 shares at a price of $56.46 per share. This transaction amounted to $186,318.

Valuation Metrics

ROKU stock has a beta of 1.71. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.32 while the price-to-book (PB) in the most recent quarter is 2.73.

Roku Inc.’s quick ratio for the period ended June 29 was 3.00, with the current ratio over the same period at 3.10. In terms of profitability, the gross margin trailing 12 months is 46.60%. The firm’s gross profit as reported stood at $1.41 billion against revenue of $2.76 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 156.42% to -$122.18 million, while revenue of -$112.32 million was 8.07% off the previous quarter. Analysts expected ROKU to announce -$0.69 per share in earnings in its latest quarter, but it posted -$0.82, representing a -18.80% surprise. EBITDA for the quarter stood at more than -$55.73 million. ROKU stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 1.61 billion, with total debt at $721.32 million. Shareholders hold equity totaling $139.27 million.

Let’s look briefly at Roku Inc. (ROKU) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 79.52% to suggest the stock is trending Overbought, with historical volatility in this time period at 31.97%.

The stock’s 5-day moving average is $51.65, reflecting a +7.52% or $3.82 change from its current price. ROKU is currently trading +27.22% above its 20-day SMA, -18.46% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +6.84% and SMA200 by-57.10%.

Stochastic %K and %D was 91.95% and 89.62% and the average true range (ATR) pointed at 2.66. The RSI (14) points at 68.58%, while the 14-day stochastic is at 95.42% with the period’s ATR at 2.78. The stock’s 9-day MACD Oscillator is pointing at 1.85 and 4.55 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Roku Inc. (NASDAQ: ROKU), Truist downgraded it to a Hold rating. They previously had a Buy rating on the stock. Analysts offering their rating for ROKU stock have a consensus rating for the stock as Hold. Currently, 5 brokerage advisors rate ROKU as a “sell,”, while 12 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 1 rates the stock as overweight while 11 have offered a “buy” rating.

What is ROKU’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $30.00 and a high of $80.00, with their median price target at $55.00. Looking at these predictions, the average price target given by analysts is for Roku Inc. (ROKU) stock is $55.85.


Please enter your comment!
Please enter your name here