Roku’s (ROKU) “Buy” Rating Reaffirmed at Needham & Company LLC

Needham & Company LLC reiterated their buy rating on shares of Roku (NASDAQ:ROKU) in a research note released on Friday morning,Benzinga reports. The brokerage currently has a $110.00 target price on the stock.

A number of other brokerages have also recently commented on ROKU. Benchmark restated a “buy” rating on shares of Roku in a research report on Wednesday, February 4th. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Tuesday. Oppenheimer set a $105.00 target price on shares of Roku and gave the stock an “outperform” rating in a research note on Friday, February 6th. UBS Group upped their price target on shares of Roku from $95.00 to $103.00 and gave the stock a “neutral” rating in a research report on Monday, November 3rd. Finally, Wall Street Zen upgraded shares of Roku from a “hold” rating to a “buy” rating in a research report on Sunday, December 7th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $123.85.

Roku Trading Up 8.6%

ROKU opened at $90.06 on Friday. The company’s 50 day moving average is $103.95 and its 200 day moving average is $98.86. The company has a market cap of $13.31 billion, a price-to-earnings ratio of 158.00 and a beta of 1.99. Roku has a 12-month low of $52.43 and a 12-month high of $116.66.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. The business had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. Roku had a net margin of 1.87% and a return on equity of 3.42%. The firm’s revenue was up 16.1% on a year-over-year basis. During the same period in the prior year, the company earned ($0.24) earnings per share. As a group, analysts predict that Roku will post -0.3 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Gilbert Fuchsberg sold 3,250 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $108.78, for a total value of $353,535.00. Following the sale, the insider directly owned 59,094 shares in the company, valued at approximately $6,428,245.32. The trade was a 5.21% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Matthew C. Banks sold 729 shares of the firm’s stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $109.04, for a total value of $79,490.16. Following the transaction, the chief accounting officer owned 5,825 shares of the company’s stock, valued at $635,158. This represents a 11.12% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 234,790 shares of company stock worth $24,224,759 in the last 90 days. 13.98% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. AQR Capital Management LLC raised its stake in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock valued at $258,897,000 after purchasing an additional 1,897,407 shares in the last quarter. Tableaux LLC bought a new stake in shares of Roku in the 2nd quarter worth about $1,746,000. Holocene Advisors LP raised its position in shares of Roku by 352.3% during the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock valued at $165,259,000 after buying an additional 1,285,585 shares in the last quarter. Norges Bank bought a new position in shares of Roku in the 4th quarter valued at about $92,808,000. Finally, Acadian Asset Management LLC grew its position in Roku by 41.2% in the second quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock worth $236,545,000 after acquiring an additional 785,864 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Q4 top‑ and bottom‑line beat: Roku reported $0.53 EPS vs. $0.28 expected and revenue of ~$1.39B (up 16% y/y), signaling improving operating leverage and a move back to profitability for the quarter. Roku stock surges on earnings beat, record quarter for premium subscriptions
• Positive Sentiment: Raised FY revenue outlook above Street: Roku guided 2026 revenue (~$5.5B) above consensus and flagged an advertising rebound — a key driver for platform revenue growth and valuation re‑rating. Roku forecasts annual revenue above estimates, shares rise
• Positive Sentiment: Platform monetization initiatives: Management plans premium subscription bundles, wider rollouts of its $3 “Howdy” service, and more premium partnerships (HBO Max cited), which should boost ARPU and higher‑margin revenue mix. Roku to launch streaming bundles
• Positive Sentiment: Analyst upgrades and price‑target increases: Multiple firms upgraded/reaffirmed buy/overweight ratings and raised targets (Wells Fargo, Rosenblatt, Needham), supporting positive sentiment and potential upside. Analyst actions on Roku
• Neutral Sentiment: Company investor materials and call posted — the webcast and earnings letter supply details needed to model ad recovery cadence and bundle economics; useful but not a market mover by itself. Roku Releases Fourth Quarter and Full Year 2025 Financial Results
• Negative Sentiment: Insider selling: CEO Anthony Wood disclosed a sale of 50,000 shares (~$4.54M), which can create short‑term selling pressure or cautious investor reaction. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability and valuation noise remain: despite the quarter, Roku still reports a small negative net margin and negative ROE on the year; some models expect negative FY EPS — keeping investors focused on whether ad recovery and bundles materially lift margins. MarketBeat Roku Summary

About Roku

Roku, Inc (NASDAQ: ROKU) is a technology company that develops and operates a proprietary streaming platform designed to deliver entertainment content to consumers via internet-connected devices and smart televisions. Since its inception in 2002 in California, Roku has focused on simplifying access to streaming services for viewers worldwide. The company’s platform enables users to discover, access and manage a wide array of over-the-top content from major streaming services, free ad-supported channels and niche providers.

At the core of Roku’s product lineup are a range of streaming players and sticks, which connect to televisions via HDMI and deliver the Roku OS experience.