Roku stock: buy or sell?
Updated on:
August 19th, 2019
4
Roku, Inc. primarily operates a TV streaming platform. Its platform allows users to discover and access a range of movies and TV episodes, as well as live sports, music, news, and others.
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. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.None of our preferred buy setups matches with Roku stock situation right now, therefore this is not a suitable entry point.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is Roku stock a buy?
Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness.
At Stocks2.com, we gathered 15 ratings published for ROKU stock in the last 30 days. The general sentiment of these ratings is bullish for ROKU stock, with 8 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-8 | Wedbush | n/a | Hold |
| 2019-8-8 | Stephens | Equal Weight | Overweight |
| 2019-8-8 | Royal Bank of Canada | Sector Perform | Sector Perform |
| 2019-8-8 | Rosenblatt Securities | Neutral | Buy |
| 2019-8-8 | Oppenheimer | n/a | Outperform |
| 2019-8-8 | Macquarie | Neutral | Neutral |
| 2019-8-8 | Loop Capital | n/a | Sell |
| 2019-8-8 | DA Davidson | n/a | Buy |
| 2019-8-8 | CIBC | Outperform | Outperform |
| 2019-8-7 | Vertical Group | Mixed | Positive |
| 2019-8-12 | Needham & Company LLC | Positive | Buy |
| 2019-7-31 | Wedbush | n/a | Neutral |
| 2019-6-24 | Wedbush | n/a | Hold |
| 2019-5-9 | Royal Bank of Canada | n/a | Outperform |
| 2019-5-9 | KeyCorp | n/a | Overweight |
Roku stock analysis
Daily outlook
After topping to all time highs on Tuesday, Roku rose 2.99% to $134.96.
After marking all time highs on Tuesday, Roku rose 2.99% today to $134.96. Since SMA100d and SMA200d crossed up on May, ROKU price climbed $55.51 per share (69.87%). ROKU is retaking the upward trend marking a new rising bottom heading to break out over $142.10. On Tuesday, ROKU hit new all time highs, pushing higher previous ATH of $136.55 recorded on August 12th. New ATHs are usual entry points for many trading setups as there aren't higher resistences. Since August 8th when ROKU stock price broke up the SMA50d line, it gained $33.99 (33.66%).
Weekly outlook
Shares of Roku closed this week at $134.96 and soared a remarkable 2.99%. Early August ROKU climbed a super good 19.78% in just one week. Late July ROKU plummed a bloodcurdling -9.87% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 31.17%.
Roku stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, ROKU might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last all-time high Roku marked last week. Since early May when SMA20w and SMA40w crossed up, ROKU price gained $69.94 per share (107.57%). Since price and SMA40w lines crossed up by mid February, ROKU climbed $86.69 (179.59%).
Roku stock price history
Roku stock went public on September 28th, 2017 with a price of $15.801. Since then, ROKU stock surged a 754.20%, with a yearly average of 754.20%. If you had invested $1,000 in Roku stock in 2017, it would worth $7,542.00 today.
1: Adjusted price after possible price splits or reverse-splits.
Roku stock historical price chart
ROKU stock reached all-time highs on Tuesday with a price of $142.10.
Roku stock price target is $111.80
Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 14 price targets for Roku stock posted in the last month:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-8 | Wedbush | Reiterates | n/a | $105.00 | - |
| 2019-8-8 | Stephens | Upgrades | $84.00 | $120.00 | 42.9% |
| 2019-8-8 | Royal Bank of Canada | Reiterates | $90.00 | $107.00 | 18.9% |
| 2019-8-8 | Rosenblatt Securities | Upgrades | $77.00 | $134.00 | 74% |
| 2019-8-8 | Oppenheimer | Raises Target | $79.00 | $120.00 | 51.9% |
| 2019-8-8 | Macquarie | Reiterates | $66.00 | $110.00 | 66.7% |
| 2019-8-8 | Loop Capital | Raises Target | n/a | $80.00 | - |
| 2019-8-8 | DA Davidson | Raises Target | n/a | $135.00 | - |
| 2019-8-8 | CIBC | Reiterates | $79.00 | $120.00 | 51.9% |
| 2019-8-12 | Needham & Company LLC | Raises Target | $120.00 | $150.00 | 25% |
| 2019-7-31 | Wedbush | Reiterates | n/a | $105.00 | - |
| 2019-6-24 | Wedbush | Set Price Target | $65.00 | $105.00 | 61.5% |
| 2019-5-9 | Royal Bank of Canada | Raises Target | n/a | $90.00 | - |
| 2019-5-9 | KeyCorp | Reiterates | $76.00 | $84.00 | 10.5% |
| (in average) | $81.80 | $111.80 | 37.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
On February, Roku presented its financial report, posting an amazing growth for the Earnings per Share (EPS). Analyst expected $0.02 per share, but Roku posted $0.05.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q1 | - | n/a | -0.09 | n/a |
| 2017-Q2 | - | n/a | -0.16 | n/a |
| 2017-Q3 | - | n/a | -0.29 | n/a |
| 2017-Q4 | 2018-02-21 | -0.11 | 0.06 | n/a |
| 2018-Q1 | 2018-05-09 | -0.16 | -0.07 | n/a |
| 2018-Q2 | 2018-08-08 | -0.15 | n/a | n/a |
| 2018-Q3 | 2018-11-07 | -0.13 | -0.09 | n/a |
| 2018-Q4 | 2019-02-21 | 0.02 | 0.05 | 150.0% |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
Annual financial results
In 2018, Roku annual sales climbed a dazzling 44.80% to $742.51 million dollars from $512.76 marked in 2017. Likewise, its earnings margin (compared to sales) skyrocketed to -1.19%, that is $-8.86 million.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2015 | $320 M | - | $-40.61 M-12.7% | - |
| 2016 | $399 M | 24.63% | $-42.76 M-10.7% | 5.29% |
| 2017 | $513 M | 28.63% | $-63.51 M-12.4% | 48.53% |
| 2018 | $743 M | 44.80% | $-8.86 M-1.2% | -86.05% |
Quarterly financial results
Roku posted $275.74 million in revenues for 2018-Q4, a 59.04% up compared to previous quarter. Reported quarter income marked $6.78 million with a profit margin of 2.46%. Profit margin escalated a 7.95% compared to previous quarter when profit margin was -5.49%. When comparing revenues to same quarter last year, Roku sales marked a super good growth and rocketed a 46.47%. Looking back to recent quarterly results, Roku posted 3 negative quarters in a row.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q1 | $100 M | - | $-8.70 M-8.7% | - |
| 2017-Q2 | $100 M | -0.46% | $-15.51 M-15.6% | 78.28% |
| 2017-Q3 | $125 M | 25.25% | $-46.24 M-37.1% | 198.10% |
| 2017-Q4 | $188 M | 50.87% | $6.94 M3.7% | -115.01% |
| 2018-Q1 | $137 M | -27.45% | $-6.63 M-4.9% | -195.58% |
| 2018-Q2 | $157 M | 14.82% | $0.53 M0.3% | -107.93% |
| 2018-Q3 | $173 M | 10.57% | $-9.53 M-5.5% | -1,911.22% |
| 2018-Q4 | $276 M | 59.04% | $6.78 M2.5% | -171.15% |
Roku ownership
When you are planning to invest in a company, it's always worth to check its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Roku, 0.86% of all outstanding shares are owned by its staff.
In case of Roku stock, 61.38% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ROKU stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to Roku:
| ROKU | MSN | |
|---|---|---|
| Market cap | $11.1 B | $21.5 M |
| Total shares | 82.0 M | 21.0 M |
| Float shares | 83.3 M | 5.8 M |
| - Institutional holdings (%) | 61.4% | 11.6% |
| - Insider holdings (%) | 0.9% | 72.4% |
| Shares in short selling | 0.0% | 0.0% |
Roku summary
| Monday, August 19th, 2019 | |
|---|---|
| Open | $131.01 |
| Close | $134.96 |
| Day range | $128.40 - $135.80 |
| Previous close | $131.04 |
| Session gain | 2.99% |
| Average true range | $7.92 |
| 50d mov avg | $106.76 |
| 100d mov avg | $90.20 |
| 200d mov avg | $69.02 |
| Daily pattern | lb02a |
| Weekly pattern | lt06a |
Roku performance
To better understand Roku performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Array as the bechmarking frame for Roku stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| ROKURoku | 40.91% | 109.34% | 113.34% |
| MSNEmerson Radio | -14.29% | -25.00% | -29.17% |
Roku competitors
Choosing a list of competitors for Roku it's not an easy task. We selected just one public company that in our opinion is related to and can be considered Roku competitor:Latest Roku stock news
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