why Roku Inc. [ROKU] is a Good Choice for Investors After New Price Target of $376.22

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Roku Inc. [NASDAQ: ROKU] stock went on an upward path that rose over 1.49% on Tuesday, amounting to a one-week price increase of more than 1.43%. The company report on December 10, 2021 that New Farrelly Brothers Roku Original ‘The Now’ Premieres December 10 on The Roku Channel.

Dave Franco, O’Shea Jackson Jr., Jimmy Tatro, Bill Murray, Alyssa Milano, Pete Davidson, and Daryl Hannah, star in new comedy from Academy Award® winners Peter Farrelly and Bobby Farrelly.


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Roku, Inc. (NASDAQ: ROKU) today announced “The Now,” a new comedy from Academy Award winners Peter Farrelly and Bobby Farrelly, will premiere exclusively on The Roku Channel on December 10.

Over the last 12 months, ROKU stock dropped by -32.05%. The one-year Roku Inc. stock forecast points to a potential upside of 38.51. The average equity rating for ROKU stock is currently 2.00, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $30.17 billion, with 133.69 million shares outstanding and 117.37 million shares in the current float. Compared to the average trading volume of 4.96M shares, ROKU stock reached a trading volume of 5765354 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on 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 $376.22 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 2.00. 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.

Morgan Stanley have made an estimate for Roku Inc. shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on December 15, 2021. While these analysts kept the previous recommendation, JP Morgan dropped their target price from $435 to $315. The new note on the price target was released on December 15, 2021, representing the official price target for Roku Inc. stock. Previously, the target price had yet another drop from $550 to $340, while Needham kept a Buy rating on ROKU stock. On November 17, 2021, analysts decreased their price target for ROKU shares from 330 to 220.

The Average True Range (ATR) for Roku Inc. is set at 15.56, with the Price to Sales ratio for ROKU stock in the period of the last 12 months amounting to 11.84. The Price to Book ratio for the last quarter was 11.53, with the Price to Cash per share for the same quarter was set at 16.71. Price to Free Cash Flow for ROKU in the course of the last twelve months was 113.35 with Quick ratio for the last quarter at 4.30.

ROKU Stock Performance Analysis:

Roku Inc. [ROKU] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 1.43. With this latest performance, ROKU shares dropped by -1.63% in over the last four-week period, additionally sinking by -47.48% over the last 6 months – not to mention a drop of -32.05% 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 47.86, with the RSI for the last a single of trading hit 51.30, and the three-weeks RSI is set at 45.31 for Roku Inc. [ROKU]. The present Moving Average for the last 50 days of trading for this stock 261.32, while it was recorded at 230.25 for the last single week of trading, and 334.83 for the last 200 days.

Insight into Roku Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Roku Inc. [ROKU] shares currently have an operating margin of -1.14 and a Gross Margin at +45.45. Roku Inc.’s Net Margin is presently recorded at -0.98.

Return on Total Capital for ROKU is now -1.40, given the latest momentum, and Return on Invested Capital for the company is -1.24. Return on Equity for this stock declined to -1.73, with Return on Assets sitting at -0.94. When it comes to the capital structure of this company, Roku Inc. [ROKU] has a Total Debt to Total Equity ratio set at 33.01. Additionally, ROKU Total Debt to Total Capital is recorded at 24.82, with Total Debt to Total Assets ending up at 19.30. Long-Term Debt to Equity for the company is recorded at 29.95, with the Long-Term Debt to Total Capital now at 22.52.

Reflecting on the efficiency of the workforce at the company, Roku Inc. [ROKU] managed to generate an average of -$9,095 per employee. Receivables Turnover for the company is 4.10 with a Total Asset Turnover recorded at a value of 0.95.Roku Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.30 and a Current Ratio set at 4.40.

ROKU Stock EPS

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. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Roku Inc. go to 49.10%.

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Roku Inc. [ROKU] Insider Position Details

There are presently around $19,007 million, or 69.20% of ROKU stock, in the hands of institutional investors. The top three institutional holders of ROKU stocks are: FMR LLC with ownership of 9,334,079, which is approximately 10.882% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 8,169,554 shares of the stock with an approximate value of $1.86 billion in ROKU stocks shares; and BLACKROCK INC., currently with $1.69 billion in ROKU stock with ownership of nearly 6.982% of the company’s market capitalization.

Positions in Roku Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 400 institutional holders increased their position in Roku Inc. [NASDAQ:ROKU] by around 7,673,328 shares. Additionally, 390 investors decreased positions by around 8,411,532 shares, while 144 investors held positions by with 67,303,263 shares. The mentioned changes placed institutional holdings at 83,388,123 shares, according to the latest SEC report filing. ROKU stock had 82 new institutional investments in for a total of 782,008 shares, while 121 institutional investors sold positions of 1,753,175 shares during the same period.