Roku stock: buy or sell
Updated on:
Apr 22nd, 2021
1
Roku stock brief
- Roku closed on Wednesday at $356.62 after just changing a 0.50% breaking a streak of 3 sessions in negative.
- Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player. The company operates in two segment, Platform and Player.
Should I buy Roku stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $ROKU stock a buy?
In the current situation of Roku there is not any eligible buy setup. This doesn't mean we expect a selloff for $ROKU in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Roku stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impulsive decisions based on our personal emotions or the noise surrounding the market. Our trading system selects very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups are not intended for selling short $ROKU stock
A guiding principle is that you should not mantain an investment that shows a greater losses than those expected by the time of purchase. The timing to sell shares must always be ruled by the stop-loss (automatic or manual)
Is it time to sell Roku stock?
In the current situation of Roku there is not any eligible sell setup, so Roku stock holders with operations in green can keep their positions
Roku ratings
In the last month, 4 brokerage ratings were published for Roku. General sentiment is bullish, with 4 out of 4 publishing positive outlooks
| Brokerage firm | Rating |
|---|---|
| Mar 30th, 2021 | |
| Truist | Neutral → |
| Truist Securities | Neutral → |
| Apr 5th, 2021 | |
| Evercore ISI | Buy |
| Apr 13th, 2021 | |
| Evercore ISI | Buy |
Roku stock analysis
SMAs overview
Supports and resistances
The current resistance levels are:
The current supports are:
Bollinger bands
Since the price surpassed the upper band on April 13, the price corrected downwards by 8.47%
Relative strength index
The RSI dropped below the overbought level of 70 last February after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Wednesday was 48.26. Roku shares tanked a 24.07% since RSI lost the overbought zone
Roku stock price history
Roku IPO was on Sep 28th, 2017 priced at $15.80 per share1. Since then, ROKU stock surged by 2,157.09%, with an average of 719.03% per year. An investment of thousand dollars at that time would be valued $22,570.89 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Roku stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, financial institutions release their price estimates based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new financial information by the company, and many times. Again, these estimates are not direct recommendations for individual traders and should not be followed blindly.
The average price target for Roku stock calculated from the table below is $378.00. Roku closed at $356.62 on Wednesday, that is a 5.66% than the forecasted price.
| Brokerage firm | Price target |
|---|---|
| Mar 30th, 2021 | |
| Truist | $480.00 → $367.00 |
| Truist Securities | $480.00 → $367.00 |
| Apr 5th, 2021 | |
| Evercore ISI | Not available |
| Apr 13th, 2021 | |
| Evercore ISI | $400.00 |
Earnings and financials
Roku ($ROKU) had the quarterly investors event and released the report last February. Roku topped analysts estimates and reported of $0.49, that is a 1,080.00% surprise compared to the estimates of $-0.05. Similarly, reported sales were $649.9 million versus estimates of $617.7 million.
Compared to the same quarter last year, EPS was $-0.13, so posted EPS means a gain of 476.92%. Looking at revenue, figures exploded a 58.03% compared to $4.1B same quarter 12 months ago.Roku ($ROKU) is posting quarterly earnings report next Thursday. Forecasted for this quarter is $-0.15, compared to $0.49 that was reported for Q4.
Roku performance
| Company | 1m | 3m | 6m |
|---|---|---|---|
| Roku ($ROKU) | -0.10% | -16.90% | 59.50% |
Important note:
The opinions written in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the specific scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for informational reasons onlyRoku summary
| Wednesday, April 21st, 2021 | |
|---|---|
| Open | $341.62 |
| Close | $356.62 |
| Day range | $336.27 - $356.97 |
| Previous close | $354.85 |
| Session gain | 0.50% |
| Average true range | $22.93 |
| 50d mov avg | $377.99 |
| 100d mov avg | $370.04 |
| 200d mov avg | $277.24 |
| Earnings date | May 6th, 2021 |