Truist Securities upgraded the stock to "buy" from "hold"
The shares of Roku Inc (NASDAQ:ROKU) are up 1.7% at $305.84 this morning, following an upgrade from Truist Securities to "buy" from "hold." The analyst also cut its price target to $367 from $480, though, despite citing multiple revenue growth opportunities and attractive valuation.
Analysts have been mostly bullish towards the security. Coming into today, 13 in coverage called ROKU a "buy" or better, while six said "hold" or worse. What's more, the 12-month consensus price target of $474.54 represented a 57.8% premium to current levels.
A technical look shows Roku stock taking a fairly deep tumble off its Feb. 16 all-time high of $486.72, guided lower by the formerly supportive 20-day moving average. The 160-day moving average could act as a floor for ROKU going forward, and the security still sports an impressive 238% year-over-year lead.
While call volume is still winning overall, option traders have rarely been more bearish. This is per ROKU's 50-day put/call volume ratio of 0.72, which stands higher than 96% of readings at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This implies puts are being picked up at a much quicker-than-usual clip.
Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at an elevated 92 out of 100. This indicates the security has exceeded volatility expectations during the past year -- a great thing for options buyers.