Roku Inc (NASDAQ: ROKU)’s stock price has decreased by -1.50 compared to its previous closing price of 65.17. However, the company has seen a 0.96% increase in its stock price over the last five trading sessions. InvestorPlace reported 2024-04-01 that It’s been nearly one and a half years since ChatGPT went live, but it sure doesn’t feel like it. ChatGPT has shaken up many sectors, and triggered an AI revolution.
Is It Worth Investing in Roku Inc (NASDAQ: ROKU) Right Now?
ROKU has 36-month beta value of 1.65. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 1 as “overweight,” 3 as “hold,” and 0 as “sell.”
The public float for ROKU is 125.34M, and currently, short sellers hold a 7.23% ratio of that float. The average trading volume of ROKU on April 02, 2024 was 6.20M shares.
ROKU’s Market Performance
ROKU’s stock has seen a 0.96% increase for the week, with a 1.60% rise in the past month and a -31.79% fall in the past quarter. The volatility ratio for the week is 2.76%, and the volatility levels for the past 30 days are at 3.16% for Roku Inc The simple moving average for the past 20 days is 0.19% for ROKU’s stock, with a -18.54% simple moving average for the past 200 days.
Analysts’ Opinion of ROKU
Many brokerage firms have already submitted their reports for ROKU stocks, with Wells Fargo repeating the rating for ROKU by listing it as a “Underweight.” The predicted price for ROKU in the upcoming period, according to Wells Fargo is $51 based on the research report published on February 27, 2024 of the current year 2024.
Citigroup, on the other hand, stated in their research note that they expect to see ROKU reach a price target of $75, previously predicting the price at $110. The rating they have provided for ROKU stocks is “Neutral” according to the report published on February 21st, 2024.
Pivotal Research Group gave a rating of “Hold” to ROKU, setting the target price at $75 in the report published on February 16th of the current year.
ROKU Trading at -15.01% from the 50-Day Moving Average
After a stumble in the market that brought ROKU to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -41.02% of loss for the given period.
Volatility was left at 3.16%, however, over the last 30 days, the volatility rate increased by 2.76%, as shares surge +1.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -23.64% lower at present.
During the last 5 trading sessions, ROKU rose by +0.96%, which changed the moving average for the period of 200-days by -12.77% in comparison to the 20-day moving average, which settled at $64.11. In addition, Roku Inc saw -29.97% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ROKU starting from Blackburn Jeffrey M, who purchase 8,000 shares at the price of $63.96 back on Mar 13 ’24. After this action, Blackburn Jeffrey M now owns 8,000 shares of Roku Inc, valued at $511,680 using the latest closing price.
Collier Charles, the President, Roku Media of Roku Inc, sale 4,182 shares at $65.00 during a trade that took place back on Mar 08 ’24, which means that Collier Charles is holding 8,474 shares at $271,830 based on the most recent closing price.
Stock Fundamentals for ROKU
Current profitability levels for the company are sitting at:
- -0.22 for the present operating margin
- 0.43 for the gross margin
The net margin for Roku Inc stands at -0.2. The total capital return value is set at -0.25. Equity return is now at value -28.54, with -16.36 for asset returns.
Based on Roku Inc (ROKU), the company’s capital structure generated 0.22 points at debt to capital in total, while cash flow to debt ratio is standing at 0.39. The debt to equity ratio resting at 0.28. The interest coverage ratio of the stock is -1028.28.
Currently, EBITDA for the company is -308.26 million with net debt to EBITDA at 2.54. When we switch over and look at the enterprise to sales, we see a ratio of 2.24. The receivables turnover for the company is 4.18for trailing twelve months and the total asset turnover is 0.82. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.41.
Conclusion
To put it simply, Roku Inc (ROKU) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
