Roku stock: buy or sell

ROKU stock price: $403.40 -5.45% At close on Jan 26th, 2021

Updated on:
Jan 27th, 2021

1

Roku stock brief

  • Roku closed on Tuesday at $403.40 after dropping a -5.45%.
  • The stock is configuring an uptrend pattern since June 2020, when it bottomed at $100.19. This uptrend marked a 302.63% gain
  • Bank of America posted a strong bullish rating for Roku on Monday, forecasting $500.00
  • Roku, Inc., together with its subsidiaries, operates a TV streaming platform. The company operates in two segments, Platform and Player.

Should I buy Roku stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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?

Currently, Roku stock doesn't match any of these trading strategies, so our recommendation is not to buy now. 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 help us to avoid impetuous decisions based on our personal emotions or the buzz surrounding the market. When selling, as well as buying, our strategies are very simple to follow but are only applicable for selling stocks in your porfolio, not for shorting $ROKU stock

As a rule of thumb, you should never mantain an investment that leads to losses greater than those expected upon the buy. The moment to sell your stock always has to 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, 10 analyst ratings were published for Roku. General sentiment is bullish, with 8 out of 10 posting positive forecasts

Roku analysts' ratings - Last month
Brokerage firmRating
Jan 4th, 2021
Rosenblatt Securities Strong buy
Jan 5th, 2021
Deutsche Bank Aktiengesellschaft BuyStrong buy
Wells Fargo & Company Buy
Jan 7th, 2021
Needham & Company LLC Strong buy
Jan 11th, 2021
Smith Barney Citigroup Neutral
Jan 12th, 2021
Macquarie BuyBuy
Jan 13th, 2021
Needham & Company LLC Strong buy
Jan 15th, 2021
Moffett Nathanson Neutral
Jan 19th, 2021
JPMorgan Chase & Co. Buy
Jan 25th, 2021
Bank of America Strong buy

Roku stock analysis

Roku stock started an uptrend in June 2020, and gained a gorgeous 302.63%. During this uptrend, the price provided some entry points on the breakouts. Latest pullback was on January 4, when price bounced at $316.46. Currently, it swings in a consolidation between its last top ($448.17) and its last bottom ($316.46)

SMAs overview

ROKU stock SMAs chart

Supports and resistances

The current resistances are:

  • R1: $448.17 (11.10% above)
  • The current supports are:

  • S1: $363.44 (-9.91% below)
  • S2: $316.46 (-21.55% below)
  • S3: $239.14 (-40.72% below)
  • Bollinger bands

    Since the price surpassed the upper band on January 19, the price has been corrected downwards by 7.98%

    ROKU stock Bollinger Bands chart

    Relative strength index

    After breaking above the overbought zone yesterday, sliced back below with a reading of 59.36. This is a weak signal for the Roku shares and it should raise our awarness of weakness in the price action

    ROKU stock RSI chart

    Roku stock price history

    Roku started trading priced at an adjusted price1 of $15.80 on Sep 2017. Since then, ROKU stock surged by 2,453.16%, with an average of 817.72% per year. If you had invested $1,000USD in Roku stock at that time, it would worth $25,531.65 today.

    1: Adjusted price after possible price splits or reverse-splits

    ROKU stock price history chart

    Price target for Roku stock

    Nobody can predict how much a stock will be priced in the future. However, many stock price forecasts are issued every day by banks, financial institutions and independent analysts.

    Along with buy or sell recommendations, financial institutions publish their price estimates based on the stock price action and the company fundamental data. Most of these estimates follow the publication of new financial data by the company, and many times. Again, these targets are not direct recommendations for small investors and must not be trusted blindly.

    The average price target for Roku stock calculated from the table below is $434.25. Roku closed at $403.40 on Tuesday, so the target price is expecting a growth by 7.65%.

    Roku stock price predictions
    Brokerage firmPrice target
    Jan 4th, 2021
    Rosenblatt Securities Not available
    Jan 5th, 2021
    Deutsche Bank Aktiengesellschaft $260.00$400.00
    Wells Fargo & Company $275.00$414.00
    Jan 7th, 2021
    Needham & Company LLC $315.00$400.00
    Jan 11th, 2021
    Smith Barney Citigroup $375.00$460.00
    Jan 12th, 2021
    Macquarie $275.00$460.00
    Jan 13th, 2021
    Needham & Company LLC Not available
    Jan 15th, 2021
    Moffett Nathanson $180.00$365.00
    Jan 19th, 2021
    JPMorgan Chase & Co. $475.00
    Jan 25th, 2021
    Bank of America $380.00$500.00

    Earnings and financials

    Investors call was hosted by Roku ($ROKU) last November after presenting the financial report. Roku topped consensus earnings estimates and posted of $0.09, that is a 122.50% improvement compared to the predictions of $-0.40. Similarly, reported revenues were $451.7 million compared to estimates of $366.3 million.

    Same quarter last year, reported EPS was $-0.22, so recently posted EPS means an improvement of 140.91%. Sales exploded a 73.10% on an annualized basis in the , from $2.6B to $4.5B last quarter.

    Roku ($ROKU) will host the earnings call next Thursday. Market analysts analysts predict of $-0.07, that is a 177.78% less than Q3.

    Roku competitors

    Roku is classified inside the Telecommunications sector and the Entertainment industry, where it has industry peers.

    Roku most relevant competitors are:

    Roku competitors
    CompanyMarket capRatingBullish ratings1
    Roku ($ROKU) $53.7B Strong buy 8
    Roku ($ROKU) $53.7B Strong buy 8
    Emerson Radio (MSN) $24.7M Neutral 0

    1 In the last 30 days.

    Roku performance

    To better understand Roku performance you must compare its gains with other related stocks in same sector or industry.. For Roku, the benchmark is made against Roku and Emerson Radio.

    ROKU performance compared
    Company1m3m6m
    Roku ($ROKU) 12.00% 80.40% 161.30%
    Roku ($ROKU) 20.20% 91.10% 178.20%
    Emerson Radio (MSN) 15.70% 23.80% 58.20%

    Important:
    The thoughts given in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the individual positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for education reasons only

    Roku summary

    Tuesday, January 26th, 2021
    Open$424.98
    Close$403.4
    Day range$400.31 - $429.39
    Previous close$426.64
    Session gain-5.45%
    Average true range$27.56
    50d mov avg$330.11
    100d mov avg$264.76
    200d mov avg$198.36
    Earnings dateFebruary 11th, 2021

    Frequently asked questions

    What is Roku stock symbol?

    Roku, Inc. is a public company trading in the US stock market with the ROKU symbol

    Is Roku stock a buy or sell?

    Roku received 10 ratings in the last 30 days: 8 bullish, 0 bearish and 2 neutral.

    Will ROKU go up?

    Roku had different price forecasts posted by market analysts in the last 4 weeks setting the target price to $434.25. That is a 7.65% than the current price ($403.40).