Roku (NASDAQ:ROKU) Earns Buy Rating from Needham & Company LLC

Roku (NASDAQ:ROKU)‘s stock had its “buy” rating reaffirmed by equities research analysts at Needham & Company LLC in a report released on Friday,Benzinga reports. They currently have a $110.00 target price on the stock. Needham & Company LLC’s price target would indicate a potential upside of 22.14% from the stock’s previous close.

Several other equities analysts have also issued reports on the company. Piper Sandler raised Roku from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $88.00 to $135.00 in a research note on Monday, November 3rd. Evercore reaffirmed a “positive” rating on shares of Roku in a research note on Friday, October 31st. Rosenblatt Securities raised shares of Roku from a “neutral” rating to a “buy” rating and raised their price target for the company from $106.00 to $118.00 in a research report on Friday. JPMorgan Chase & Co. boosted their target price on Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. Finally, KeyCorp increased their price objective on shares of Roku from $128.00 to $130.00 and gave the company an “overweight” rating in a research report on Friday. One 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $123.85.

Roku Stock Performance

Shares of ROKU stock opened at $90.06 on Friday. The firm has a market cap of $13.31 billion, a P/E ratio of 158.00 and a beta of 1.99. The firm’s 50 day moving average price is $103.95 and its 200-day moving average price is $98.92. Roku has a one year low of $52.43 and a one year high of $116.66.

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

Insiders Place Their Bets

In related news, insider Gilbert Fuchsberg sold 3,250 shares of the company’s stock in a transaction on Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the completion of the sale, the insider owned 59,094 shares in the company, valued at $6,428,245.32. This represents a 5.21% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Anthony J. Wood sold 75,000 shares of the firm’s stock in a transaction on Monday, January 12th. The stock was sold at an average price of $109.61, for a total transaction of $8,220,750.00. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 234,790 shares of company stock worth $24,224,759. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors have recently added to or reduced their stakes in ROKU. Apollon Wealth Management LLC lifted its position in Roku by 1.5% during the 4th quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company’s stock worth $700,000 after acquiring an additional 96 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Roku by 9.5% during the third quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock worth $112,000 after purchasing an additional 97 shares during the period. Cornerstone Wealth Management LLC grew its position in Roku by 3.8% in the 3rd quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock valued at $273,000 after buying an additional 100 shares during the last quarter. Thoroughbred Financial Services LLC increased its stake in Roku by 1.0% in the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock valued at $995,000 after buying an additional 100 shares during the period. Finally, Aviance Capital Partners LLC raised its position in Roku by 2.6% during the 3rd quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock worth $418,000 after buying an additional 106 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company’s stock.

Key Headlines Impacting Roku

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.