Brokerages Set Roku, Inc. (NASDAQ:ROKU) Target Price at $125.40

Shares of Roku, Inc. (NASDAQ:ROKU) have earned an average recommendation of “Moderate Buy” from the twenty-six research firms that are covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation, twenty-one have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $126.75.

A number of research firms have weighed in on ROKU. Pivotal Research lifted their price target on shares of Roku from $135.00 to $140.00 and gave the stock a “buy” rating in a research note on Monday, February 16th. JPMorgan Chase & Co. increased their price objective on shares of Roku from $115.00 to $125.00 and gave the company an “overweight” rating in a research note on Friday, December 12th. Zacks Research raised shares of Roku from a “hold” rating to a “strong-buy” rating in a report on Tuesday, February 10th. Moffett Nathanson reiterated a “neutral” rating and set a $100.00 target price on shares of Roku in a research report on Friday, February 13th. Finally, Evercore reissued an “outperform” rating and issued a $150.00 target price on shares of Roku in a research note on Friday, February 13th.

Roku Stock Down 2.1%

Roku stock opened at $87.15 on Wednesday. The business has a 50 day moving average price of $94.94 and a two-hundred day moving average price of $99.51. Roku has a 12 month low of $52.43 and a 12 month high of $116.66. The stock has a market cap of $12.85 billion, a price-to-earnings ratio of 152.90 and a beta of 1.98.

Roku (NASDAQ:ROKU) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.25. The company had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.35 billion. Roku had a return on equity of 3.40% and a net margin of 1.87%.Roku’s revenue for the quarter was up 16.1% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.24) EPS. On average, analysts expect that Roku will post -0.3 earnings per share for the current fiscal year.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Zacks publishes a bullish take arguing Roku is a strong growth stock based on style scores and growth metrics — this can support investor interest and constructive analyst sentiment. Here’s Why Roku (ROKU) is a Strong Growth Stock
• Positive Sentiment: Roku added 16 free streaming channels and made its “Howdy” $2.99 ad-free service available on Prime Video — expands distribution, content inventory and potential ad/subscription revenue. Roku Expands Free Channel Lineup
• Positive Sentiment: Roku announced a partnership with Texas A&M to expand streaming opportunities — partnerships can drive viewership and ad inventory growth over time. Roku Expands Streaming with Texas A&M Partnership
• Neutral Sentiment: Roku is listed among speakers/participants at industry events (StreamTV Europe) — positive for corporate visibility but limited near-term revenue impact. YouTube Joins Questex’s StreamTV Europe
• Neutral Sentiment: Content licensed to/featured on third‑party shows (e.g., a new reality show airing on Roku) increases platform reach but is unlikely to move near-term results materially. New Reality Show Airing on Roku
• Negative Sentiment: Target heavily discounted a Roku 40-inch smart TV — retail price cuts can pressure device ASPs and hardware margins if broader promotional activity follows. Target just slashed the price of its Roku 40-inch smart TV
• Negative Sentiment: A Los Angeles jury ruling found major social platforms negligent for youth harm, triggering broad social‑platform selloffs that included Roku — legal/regulatory risk and sentiment-driven pressure weighed on the stock. Reddit, Meta, Roku, Snap, and Pinterest Shares Plummet
• Negative Sentiment: Recent trading shows Roku moving down more than the broader market, reflecting combination of the legal news, promotional activity and some investor de-risking (including reported ARK trimming earlier) — could keep near-term volatility higher. Roku (ROKU) Dips More Than Broader Market

Insider Activity at Roku

In other news, CEO Anthony J. Wood sold 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $99.68, for a total value of $4,984,000.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Charles Collier sold 1,715 shares of the stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $100.00, for a total value of $171,500.00. Following the completion of the transaction, the insider directly owned 11,131 shares of the company’s stock, valued at approximately $1,113,100. The trade was a 13.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 213,124 shares of company stock valued at $21,433,878. Corporate insiders own 13.98% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in shares of Roku by 2.5% in the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock valued at $1,301,557,000 after purchasing an additional 322,858 shares in the last quarter. AQR Capital Management LLC increased its position in shares of Roku by 10.6% during the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after purchasing an additional 274,024 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Roku by 7.3% during the 4th quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock valued at $267,389,000 after purchasing an additional 168,214 shares during the last quarter. Holocene Advisors LP lifted its holdings in 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 purchasing an additional 1,285,585 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its position in Roku by 0.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company’s stock valued at $163,786,000 after buying an additional 12,705 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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.