KeyBanc Capital Markets slashes price target on Roku Inc. [ROKU] – find out why.

Roku Inc. [NASDAQ: ROKU] surged by $28.35 during the normal trading session on Monday and reaching a high of $189.80 during the day while it closed the day at $188.82.

Roku Inc. stock has also gained 19.71% of its value over the past 7 days. However, ROKU stock has inclined by 45.49% in the 3 months of the year. Over the past six months meanwhile, it has gained 111.07% and gained 41.02% year-on date.

The market cap for ROKU stock reached $24.16 billion, with 122.61 million shares outstanding and 105.18 million shares in the current float. Compared to the average trading volume of 9.17M shares, ROKU reached a trading volume of 35444189 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Roku Inc. [ROKU]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ROKU shares is $169.38 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ROKU stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

KeyBanc Capital Markets have made an estimate for Roku Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 15, 2020. While these analysts kept the previous recommendation, Wells Fargo raised their target price to Overweight. The new note on the price target was released on September 08, 2020, representing the official price target for Roku Inc. stock. Previously, the target price had yet another raise to $180, while Citigroup analysts kept a Buy rating on ROKU stock.

The Average True Range (ATR) for Roku Inc. is set at 10.45, with the Price to Sales ratio for ROKU stock in the period of the last 12 months amounting to 17.91. The Price to Book ratio for the last quarter was 22.80.

ROKU stock trade performance evaluation

Roku Inc. [ROKU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 19.71. With this latest performance, ROKU shares gained by 26.82% in over the last four-week period, additionally plugging by 111.07% over the last 6 months – not to mention a rise of 74.75% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ROKU stock in for the last two-week period is set at 66.63, with the RSI for the last a single of trading hit 70.69, and the three-weeks RSI is set at 64.55 for Roku Inc. [ROKU]. The present Moving Average for the last 50 days of trading for this stock 157.18, while it was recorded at 170.49 for the last single week of trading, and 128.39 for the last 200 days.

Roku Inc. [ROKU]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Roku Inc. [ROKU] shares currently have an operating margin of -5.42 and a Gross Margin at +43.87. Roku Inc.’s Net Margin is presently recorded at -5.31.

Return on Total Capital for ROKU is now -8.98, given the latest momentum, and Return on Invested Capital for the company is -8.95. Return on Equity for this stock declined to -12.71, with Return on Assets sitting at -6.19. When it comes to the capital structure of this company, Roku Inc. [ROKU] has a Total Debt to Total Equity ratio set at 60.02. Additionally, ROKU Total Debt to Total Capital is recorded at 37.51, with Total Debt to Total Assets ending up at 28.51. Long-Term Debt to Equity for the company is recorded at 56.76, with the Long-Term Debt to Total Capital now at 35.47.

Reflecting on the efficiency of the workforce at the company, Roku Inc. [ROKU] managed to generate an average of -$36,325 per employee. Receivables Turnover for the company is 4.34 with a Total Asset Turnover recorded at a value of 1.17.Roku Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.00 and a Current Ratio set at 3.10.

Earnings per share (EPS) analysis for Roku Inc. [ROKU] stock

With the latest financial reports released by the company, Roku Inc. posted -0.22/share EPS, while the average EPS was predicted by analysts to be reported at -0.27/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 18.50%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ROKU.

Roku Inc. [ROKU]: Insider Ownership positions

There are presently around $14,630 million, or 72.00% of ROKU stock, in the hands of institutional investors. The top three institutional holders of ROKU stocks are: FMR LLC with ownership of 10,151,517, which is approximately 8.424% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 8,525,746 shares of the stock with an approximate value of $1.61 billion in ROKU stocks shares; and BLACKROCK INC., currently with $1.08 billion in ROKU stock with ownership of nearly 16.744% of the company’s market capitalization.

Positions in Roku Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 323 institutional holders increased their position in Roku Inc. [NASDAQ:ROKU] by around 15,215,601 shares. Additionally, 224 investors decreased positions by around 9,426,142 shares, while 74 investors held positions by with 52,840,367 shares. The mentioned changes placed institutional holdings at 77,482,110 shares, according to the latest SEC report filing. ROKU stock had 127 new institutional investments in for a total of 4,222,021 shares, while 79 institutional investors sold positions of 1,677,576 shares during the same period.

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