Roku Inc. (NASDAQ:ROKU) finished Thursday with a subtraction of -$4.12 to close at $76.15, a downside of -5.13 percent. An average of 5,220,660 shares of common stock have been traded in the last five days. There was a fall of -$1.08 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 11,438,655 shares traded, while the 50-day average volume stands at 8,706,312.
ROKU stock has increased by 6.55% in the last month. The company shares reached their 1-month lowest point of $67.70 on 07/27/23. With the stock rallying to its 52-week high on 08/01/23, shares of the company touched a low of $38.26 and a high of $98.44 in 52 weeks. It has reached a new high 24 times so far this year and achieved 87.10% or $35.45 in price. In spite of this, the price is down -22.64% from the 52-week high.
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Insider Transactions
ROKU stock investors should be aware that Roku Inc. (ROKU) stock had its last reported insider trading activity 25 days ago on Jul 31. In this transaction, the insider spent $521,843. Director, Fyfield Mai, disposed of 398 shares at a price of $69.86 on Jun 12. The insider now owns more than $27,804 worth of shares. Prior to that, SVP, Corporate Development Fuchsberg Gilbert went on to Sale 2,129 shares at $59.44 each on Jun 05. An amount of $126,548 was transacted.
Valuation Metrics
Roku Inc. (ROKU) stock’s beta is 1.76. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.26, the price-to-book (PB) ratio at 4.24.
Financial Health
The quick ratio of Roku Inc. for the recent quarter was 2.70, and the current ratio was 2.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the recent quarter. Roku Inc.’s EBITDA margin is -13.41%, while its operating margin for the same period stands at -22.90%. Its gross profit as reported stood at $1.44 billion compared to revenue of $3.13 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Roku Inc.’s return on assets was -15.50%.
Earnings Surprise
In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$107.6 million in the quarter, while revenues of -$193.6 million were shrunk -4.39%. Shareholders own equity worth $141.51 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Roku Inc. (ROKU) price momentum. RSI 9-day as of the close on 24 August was 40.30%, suggesting the stock is Neutral, with historical volatility in this time frame at 46.69%.
As of today, ROKU’s price is $78.51 -1.40% or -$1.08 from its 5-day moving average. ROKU is currently trading +11.67% higher than its 20-day SMA and +15.69% higher than its 100-day SMA. However, the stock’s current price level is +3.48% above the SMA50 and +53.56% above the SMA200.
The stochastic %K and %D were 20.39% and 19.39%, respectively, and the average true range (ATR) was 4.29. With the 14-day stochastic at 7.66% and the average true range at 4.35, the RSI (14) stands at 45.57%. The stock has reached -1.12 on the 9-day MACD Oscillator while the 14-day reading was at -2.36.
Analyst Ratings
Citigroup downgraded Roku Inc. (NASDAQ: ROKU) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Roku Inc. (ROKU) among analysts is Hold. According to current brokerage recommendations, 5 brokerage firms advise that investors sell ROKU, while 16 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 12 others rate it as a “buy”.
What is ROKU’s price target for the next 12 months?
Analysts predict a range of price targets between $50.00 and $100.00, with a median target of $85.00. Taking a look at these predictions, the average price target given by analysts for Roku Inc. (ROKU) stock is $80.43.
