Roku Inc. (ROKU) – The 5.55% Upside Potential Remains

Roku Inc. (NASDAQ: ROKU) is 29.09% higher on its value in year-to-date trading and has touched a low of $58.22 and a high of $176.55 in the current 52-week trading range. The ROKU stock was last observed hovering at around $160.97 in the last trading session, with the day’s gains setting it 11.88% off its average median price target of $183.00 for the next 12 months. It is also 16.9% off the consensus price target high of $208.00 offered by 23 analysts, but current levels are -165.92% lower than the price target low of $65.00 for the same period.

Currently trading at $172.85, the stock is 12.97% and 19.20% above its SMA20 and SMA50 respectively. However, with a daily trading volume of 26.69 million and changing 7.38% at the moment leaves the stock 35.86% off its SMA200. ROKU registered 15.33% gain for a year compared to 6-month gain of 50.74%. The firm has a 50-day simple moving average (SMA 50) of $152.92 and a 200-day simple moving average (SMA200) of $122.03.

The stock witnessed a 14.97% loss in the last 1 month and extending the period to 3 months gives it a 53.03%, and is 17.48% up over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 6.11% over the week and 4.92% over the month.

Roku Inc. (ROKU) has around 1650 employees, a market worth around $20.07B and $1.35B in sales. Profit margin for the company is -10.30%. Distance from 52-week low is 196.89% and -2.10% from its 52-week high. The company has generated returns on investments over the last 12 months (-8.00%).

Roku Inc. (ROKU) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Roku Inc. (ROKU) is a “Overweight”. 23 analysts offering their recommendations for the stock have an average rating of 2.30, where 6 rate it as a Hold and 0 think it is a “Overweight”. 15 of the analysts rate the stock as a “Buy”. 2 analysts have rated the stock as a Sell or Underperform.

Roku Inc. is expected to release its quarterly report on 11/04/2020 and quarterly earnings per share for the current quarter are estimated at -$0.42 with sales reaching $364.49M over the same period.The EPS is expected to shrink by -514.50% this year, but quarterly earnings will post 40.60% year-over-year. Quarterly sales are estimated to grow 39.70% in year-over-year returns.

Roku Inc. (ROKU) Top Institutional Holders

649 institutions hold shares in Roku Inc. (ROKU), with 972.72k shares held by insiders accounting for 0.78% while institutional investors hold 68.50% of the company’s shares. The shares outstanding are 122.61M, and float is at 105.18M with Short Float at 6.91%. Institutions hold 67.97% of the Float.

The top institutional shareholder in the company is FMR, LLC with over 10.15 million shares valued at $1.18 billion. The investor’s holdings represent 9.59% of the ROKU Shares outstanding. As of Jun 29, 2020, the second largest holder is Vanguard Group, Inc. (The) with 8.53 million shares valued at $993.51 million to account for 8.05% of the shares outstanding. The other top investors are Blackrock Inc. which holds 5.73 million shares representing 5.41% and valued at over $667.55 million, while ARK Investment Management, LLC holds 3.14% of the shares totaling 3.32 million with a market value of $387.23 million.

Roku Inc. (ROKU) Insider Activity

A total of 216 insider transactions have happened at Roku Inc. (ROKU) in the last six months, with sales accounting for 162 and purchases happening 54 times. The most recent transaction is an insider sale by Fyfield Mai, the company’s Director. SEC filings show that Fyfield Mai sold 306 shares of the company’s common stock on Aug 24 at a price of $149.50 per share for a total of $45747.0. Following the sale, the insider now owns 0.0 shares.

Roku Inc. disclosed in a document filed with the SEC on Aug 24 that Rosenberg Scott A. (GM, Sr. VP Platform Business) sold a total of 2,400 shares of the company’s common stock. The trade occurred on Aug 24 and was made at $149.50 per share for $0.36 million. Following the transaction, the insider now directly holds 20268.0 shares of the ROKU stock.

Still, SEC filings show that on Aug 18, Wood Anthony J. (CEO and Chairman BOD) disposed off 100,000 shares at an average price of $150.28 for $15.03 million. The insider now directly holds 25,000 shares of Roku Inc. (ROKU).

Roku Inc. (ROKU): Who are the competitors?

The company’s main competitors (and peers) include Roku Inc. (ROKU) that is trading 15.33% up over the past 12 months. Emerson Radio Corp. (MSN) is -28.22% down on the 1-year trading charts. Short interest in the company’s stock has fallen -35.21% from the last report on Jul 14, 2020 to stand at a total of 9.83 million short shares sold with a short interest ratio of 0.9.