The stock of Roku Inc. (NASDAQ:ROKU) increased by $3.0 on Monday to finish at $82.26, up 3.79 percent. The last five days have seen an average of 6,108,680 shares of common stock traded. 24 times new highs were reached in the current year, with a gain of $41.56. The average number of shares traded over the last 20 days was 11,936,755, while the average volume over the last 50 days totaled 9,290,312.
ROKU stock appreciated 11.13% since last month. On 07/27/23, the company’s shares reached a one-month low of $67.70. The stock touched a high of $98.44 on 08/01/23, after rallying from a low of $38.26 in 52 weeks. The price of ROKU stock has risen by 102.11% or $41.56 this year, reaching a new high 24 times. Still, the stock price is down -16.44% from the 52-week high.
Insider Transactions
ROKU stock investors should be aware that Roku Inc. (ROKU) stock had its last reported insider trading activity 15 days ago on Jul 31. On Jul 31, SVP General Counsel, Secretary KAY STEPHEN H sold 5,692 shares at $91.68 each. This transaction resulted in the insider making $521,843. On Jun 12, Fyfield Mai sold 398 shares at a price of US$69.86. After the transaction, the insider now owns 1,745 shares. SVP, Corporate Development Fuchsberg Gilbert had earlier sold 2,129 shares on Jun 05 for $59.44 a share. The transaction was completed for $126,548.
Valuation Metrics
Beta for the stock is 1.76. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.60, the price-to-book (PB) ratio of 4.58.
Financial Health
For the three months ended June 29, Roku Inc.’s quick ratio was 2.70, while its current ratio was 2.80, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 44.70% percent. Roku Inc.’s EBITDA margin for the year ended June 29 was -13.41%, whereas its operating margin stood at -22.90% for the same period. Based on annual data, it had gross profit of $1.44 billion and revenue of $3.13 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ROKU’s return on assets (ROA) during the last 12 months has been -15.50%. There was a -19.70% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -25.10%.
Earnings Surprise
According to Roku Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $847.19 million, while revenues rose by 9.77% to $740.99 million. It was predicted that Roku Inc.’s quarterly earnings would be -$0.76, but it ended up being -$1.26, beating the consensus by 39.70%. EBITDA was -$39.27 million for the quarter. At the end of Roku Inc.’s most recent quarter ended June 29, its liabilities totaled 1.62 billion, while its total debt was $648.74 million. Equity owned by shareholders amounts to $141.51 million.
Technical Picture
Here’s a quick look at Roku Inc.’s (ROKU) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 50.96%, suggesting the stock is Neutral, with a 49.92% historical volatility rate.
The stochastic %K and %D were 40.39% and 42.58% respectively, while the average true range (ATR) was 4.67. Based on the 14-day stochastic reading of 47.37%, the RSI (14) reading is 53.75%. On the 9-day MACD Oscillator, the stock is at -4.66, and the 14-day reading is at -4.60.
Analyst Ratings
Roku Inc. (NASDAQ: ROKU) was downgraded by Citigroup to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Roku Inc. (ROKU) an Hold rating. ROKU is a stock that is recommended for selling by 5 brokerage firms, while 16 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 0 rates it overweight and 12 others recommend it as a buy.
What is ROKU’s price target for the next 12 months?
The current consensus forecast for the stock is between $50.00 and $100.00, with a median target price of $85.00. In analyzing these forecasts, the average price target given by analysts for Roku Inc. (ROKU) is $80.37.
