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Sunday, December 3, 2023

Is Roku Inc (NASDAQ: ROKU) No Longer A Good Investment?

After Hours

After-hours and pre-market trading may carry slightly higher risks than regular market hours. As issuers often announce important financial information outside regular trading hours, extended-hours trading may result in wider spreads for a particular security. That is because extended-hours trading may result in lower liquidity and higher volatility. After-hours trades for Roku Inc (ROKU) shows that investor sentiment remained intact, with the stock’s consolidated last price rising by $0.19, or 0.20%, to $95.18. The Roku Inc has recorded 36,409 volume in the after hours trading session. Most recently, Yahoo Finance reported about the stock as it publicized that Roku Announces $20 Off Roku Streaming Stick 4K and More Black Friday Deals.

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Stocks Info

ROKU belongs to the Communication Services sector of the NASDAQ while operating in the Entertainment industry. At the end of the last regular session, the stock closed at $94.99 and fluctuated between $96.48 as its day high and $92.70 as its day low. The current market capitalization of Roku Inc is $13.54B. A total of 5.93 million shares were traded on the day, compared to an average of 7.21M shares.

Insider Activity

Investors also take into account insider trades in predicting how the stock will perform in the future. During the recent three months, ROKU has seen 10 BUY and 16 SELL insider trades, representing the acquisition of 295,528 and the disposition of 155,721 shares. Over the last 12 months, there were 37 BUYs and 40 SELLs from insiders. Insiders purchased 535,989 shares during that period but sold 333,258.

In the most recent transaction, Collier Charles sold 14,014 shares of ROKU for 89.19 per share on Nov 17. After the transaction, the President, Roku Media now owns 16,569 company shares. In a previous transaction on Nov 17, Banks Matthew C. sold 6,794 shares at 89.19 per share. ROKU shares that VP, Corp Controller & CAO owns now total 4,537.

Among the insiders who sold shares, Fuchsberg Gilbert disposed of 1,574 shares on Nov 17 at a per-share price of $89.19. This resulted in the SVP, Corporate Development holding 35,086 shares of ROKU after the transaction. In another insider transaction, KAY STEPHEN H sold 1,166 shares at $89.19 per share on Nov 17. Company shares held by the SVP General Counsel, Secretary now total 80,713.

While price targets are rarely accurate, they tend to exert some kind of influence from time to time and are often taken into account by investors. According to analysts who have offered 12-month price targets for ROKU in the last 3 months, the mean price target is $86.95 with high estimates of $115.00 and low estimates of $55.00. In terms of 52-week highs and lows, ROKU has a high of $98.44 and a low of $38.26.

As of this writing, ROKU has an earnings estimate of -$0.55 per share for the current quarter. EPS was calculated based on a consensus of 23 estimates, with a high estimate of -$0.2 per share and a lower estimate of -$0.86. The company reported an EPS of -$0.76 in the last quarter, which was 39.70% higher than expectations of -$1.26.

Balance Sheet Annually/Quarterly

An organization’s balance sheet depicts the assets and liabilities it has, as well as the amount of equity invested. Investors can measure a company’s prospects by calculating its financial ratios using this information. ROKU’s latest balance sheet shows that the firm has $2.15B in Cash & Short Term Investments as of fiscal 2021. There were $484.59M in debt and $729.62M in liabilities at the time. Its Book Value Per Share was $16.19, while its Total Shareholder’s Equity was $2.77B.

Analysts Opinion

There is a slight risk associated with trading before and after the market open. Due to lower liquidity and higher volatility, extended-hours trading may result in wider spreads on particular security due to the release of critical financial information after regular trading hours. Currently, 0 analysts are providing their opinions on the stock. On a scale of 1 to 5, with 1 being Sell and 5 being Buy, the average analyst rating for ROKU is Buy with a score of 3.64.

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