Taking a Look at the Data Behind Roku, Inc. (ROKU)

Roku, Inc. (ROKU) is an interesting player in the Services space, with a focus on CATV Systems. The stock has been active on the tape, currently trading at $43.43, up from yesterday’s close by 4.75%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Roku, Inc. (ROKU) currently trades with a market capitalization of $4.44 Billion. That value represents a market adjusting for revenues that have been growing by 36.45 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$15.61 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.15 on a per share basis this quarter. Perhaps, that suggests something about why 0.09% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Roku, Inc. recorded a 52-week high of $58.80. It is now trading 15.37% off that level. The stock is trading $34.94 its 50-day moving average by -8.49%. The stock carved out a 52-week low down at $15.75.

In recent action, Roku, Inc. (ROKU) has made a move of +27.44% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.57, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 17.90% with $48.70 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of ROKU.

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