Roku share price: what’s the latest after its secondary share offering?
The streaming platform issued a secondary share offering that led to its stock falling more than 7% this week. But with the stock up 400% since the start of January its share price could climb higher.
On Tuesday, Roku saw its shares tumble more than 7% after it announced a secondary share offering, with management selling 1 million shares of Class A common stock.
The decision likely upset some shareholders, with it being the third time this year that the company has sold additional shares and, therefore, diluted existing shareholders holdings.
However, the funds raised from the secondary share offering will be used to ‘acquire or invest in businesses’, according to the Securities and Exchange Commission (SEC) filing.
Roku hints at further M&A after DataXu deal
Roku only recently completed its acquisition of adverting platform DataXu in a deal valued at $150 million. The deal will help the streaming platform deepen its foray into advertising, which has become one of its most profitable business lines.
So far this year, the stock is up close to 400% - making it one of the highest growth stocks. Investors can expect its share price to continue to rise if it does look to use the funds raised from its latest share offering to make acquisitions.
Analysts remain upbeat about the Roku share price
The 17 analysts offering 12-month price forecasts for Roku Inc have a median target of $150, with a high estimate of $185 and a low estimate of $60.
Based on the stock trading at $157.83 as of 16:45 GMT on Thursday, analysts believe the stock has a potential upside of 17.2%.
However, based on analysts median and low estimate, it could slide between -4.9% to 61%.
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