Roku (NASDAQ:ROKU) Stock Rating Cut to “Neutral” at Rosenblatt Securities

Roku (NASDAQ:ROKU) was downgraded by equities researchers at Rosenblatt Securities from a “buy” rating to a “neutral” rating in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $160.00 price target on the stock. Rosenblatt Securities‘s target price would suggest a potential upside of 2.88% from the stock’s current price.

Several other equities research analysts have also recently weighed in on the company. Fox Advisors set a $157.00 price objective on shares of Roku in a research note on Friday, July 17th. Wells Fargo & Company cut shares of Roku from an “overweight” rating to an “equal weight” rating and cut their target price for the company from $167.00 to $165.00 in a research note on Friday, August 14th. Seaport Research Partners downgraded shares of Roku from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Needham & Company LLC restated a “buy” rating on shares of Roku in a research report on Tuesday. Finally, Wedbush restated a “neutral” rating and issued a $155.00 price target on shares of Roku in a research report on Thursday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $156.17.

Roku Stock Performance

Shares of ROKU opened at $155.52 on Tuesday. The firm has a market cap of $23.08 billion, a PE ratio of 66.46 and a beta of 2.05. The firm’s 50 day moving average price is $155.11 and its 200 day moving average price is $127.79. Roku has a twelve month low of $78.53 and a twelve month high of $160.22.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Monday, November 2nd. The company reported $1.20 earnings per share for the quarter, topping analysts’ consensus estimates of $0.55 by $0.65. The company had revenue of $1.50 billion during the quarter, compared to analysts’ expectations of $1.41 billion. Roku had a return on equity of 13.73% and a net margin of 6.82%. The business’s quarterly revenue was up 24.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.16 earnings per share. On average, sell-side analysts anticipate that Roku will post 2.97 earnings per share for the current fiscal year.

Insider Activity

In other Roku news, CFO Dan Jedda sold 7,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $156.81, for a total value of $1,097,670.00. Following the completion of the sale, the chief financial officer owned 74,811 shares in the company, valued at approximately $11,731,112.91. This trade represents a 8.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Charles Collier sold 20,538 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $156.99, for a total transaction of $3,224,260.62. Following the completion of the sale, the insider directly owned 22,700 shares of the company’s stock, valued at approximately $3,563,673. This represents a 47.50% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 96,195 shares of company stock worth $14,854,525 over the last ninety days. Corporate insiders own 13.45% of the company’s stock.

Institutional Trading of Roku

Institutional investors and hedge funds have recently made changes to their positions in the business. Arrowstreet Capital Limited Partnership grew its holdings in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock valued at $192,868,000 after buying an additional 1,419,772 shares during the period. HBK Investments L P bought a new stake in shares of Roku in the 2nd quarter valued at $163,604,000. Renaissance Technologies LLC raised its stake in Roku by 22.8% during the 1st quarter. Renaissance Technologies LLC now owns 1,565,100 shares of the company’s stock worth $148,090,000 after buying an additional 290,200 shares during the period. Bank of New York Mellon Corp acquired a new stake in Roku during the 2nd quarter worth $105,216,000. Finally, Bank of America Corp DE lifted its holdings in Roku by 5.5% during the first quarter. Bank of America Corp DE now owns 1,082,755 shares of the company’s stock worth $102,450,000 after acquiring an additional 56,893 shares in the last quarter. Institutional investors own 86.30% of the company’s stock.

Roku News Summary

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku exceeded Q3 expectations. The company reported approximately $1.20 in adjusted earnings per share versus the $0.55 analyst consensus, while revenue reached $1.50 billion, ahead of estimates of $1.41 billion. Revenue increased 24.1% year over year, and net income climbed to $183 million from roughly $26 million a year earlier. MarketBeat Roku earnings report
• Positive Sentiment: Advertising momentum supported profitability. Advertising revenue grew 23%, with improved ad gross margins allowing Roku to retain more revenue as profit. Lower marketing expenses also contributed to the roughly sevenfold increase in net income. The Motley Fool Roku advertising earnings report
• Positive Sentiment: Fox deal uncertainty has eased somewhat. Fox said it had received all required foreign regulatory approvals for its proposed approximately $22 billion acquisition of Roku, narrowing the deal spread and reducing one obstacle to closing. Roku Fox deal regulatory approvals
• Neutral Sentiment: Because the Fox acquisition is pending, Roku will not hold an earnings call or provide financial guidance. That limits visibility into fourth-quarter trends and the company’s standalone outlook. Roku third quarter 2026 financial results
• Negative Sentiment: Roku expects higher costs in the fourth quarter, which could temper near-term margin expansion despite the strong Q3 performance. The planned removal of a popular feature may also create some user dissatisfaction, although its financial effect is likely limited. Roku feature removal

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.