Roku Inc (NASDAQ: ROKU) stock jumped 3.88% on Friday to $92.97 against a previous-day closing price of $89.50. With 6.47 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.21 million shares. During the session, the Entertainment company that operates in wider Communication Services sector, reached to the highest price of $93.00 whereas the lowest price it dropped to was $88.08. The 52-week range on ROKU shows that it touched its highest point at $98.44 and its lowest point at $38.26 during that stretch. It currently has a 1-year price target of $86.95. Beta for the stock currently stands at 1.89.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ROKU was up-trending over the past week, with a rise of 14.34%, but this was up by 48.80% over a month. Three-month performance surged to 18.90% while six-month performance rose 76.72%. The stock gained 63.45% in the past year, while it has gained 128.43% so far this year. A look at the trailing 12-month EPS for ROKU yields -6.17 with Next year EPS estimates of -2.00. For the next quarter, that number is -0.57. This implies an EPS growth rate of -38.72% for this year and 60.22% for next year. EPS is expected to grow by 43.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -41.38%.
Float and Shares Shorts:
At present, 142.50 million ROKU shares are outstanding with a float of 124.30 million shares on hand for trading. On Oct 30, 2023, short shares totaled 9.16 million, which was 6.43% higher than short shares on Sep 28, 2023. In addition to Mr. Anthony J. Wood as the firm’s Founder, Chairman, President & CEO, Mr. Mustafa Ozgen serves as its President of Devices.
Through their ownership of 81.77% of ROKU’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.46% of ROKU, in contrast to 34.72% held by mutual funds. Shares owned by individuals account for 3.63%. As the largest shareholder in ROKU with 9.11% of the stake, The Vanguard Group, Inc. holds 11,309,236 shares worth 11,309,236. A second-largest stockholder of ROKU, ARK Investment Management LLC, holds 10,439,813 shares, controlling over 8.41% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in ROKU, holding 9,066,610 shares or 7.31% stake. With a 6.04% stake in ROKU, the ARK Innovation ETF is the largest stakeholder. A total of 7,493,536 shares are owned by the mutual fund manager. The Fidelity Advisor Series I -Growth, which owns about 4.20% of ROKU stock, is the second-largest Mutual Fund holder. It holds 5,210,120 shares valued at 310.37 million. Vanguard Total Stock Market ETF holds 3.12% of the stake in ROKU, owning 3,875,295 shares worth 230.85 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ROKU since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ROKU analysts setting a high price target of $115.00 and a low target of $55.00, the average target price over the next 12 months is $86.93. Based on these targets, ROKU could surge 23.7% to reach the target high and fall by -40.84% to reach the target low. Reaching the average price target will result in a decline of -6.5% from current levels.
Summary of Insider Activity:
Insiders traded ROKU stock several times over the past three months with 10 Buys and 16 Sells. In these transactions, 295,528 shares were bought while 155,721 shares were sold. The number of buy transactions has increased to 37 while that of sell transactions has risen to 40 over the past year. The total number of shares bought during that period was 535,989 while 333,258 shares were sold.