Wells Fargo & Company Forecasts Strong Price Appreciation for Roku (NASDAQ:ROKU) Stock

Roku (NASDAQ:ROKU) had its price target raised by equities research analysts at Wells Fargo & Company from $116.00 to $137.00 in a report issued on Friday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price suggests a potential upside of 52.12% from the company’s current price.

A number of other research analysts also recently commented on the stock. Citigroup reiterated an “outperform” rating on shares of Roku in a research note on Friday, January 9th. Susquehanna reiterated a “positive” rating and issued a $130.00 price target on shares of Roku in a research note on Friday, October 31st. Wedbush boosted their price objective on Roku from $130.00 to $140.00 and gave the company an “outperform” rating in a report on Friday. UBS Group restated a “neutral” rating and set a $110.00 price objective on shares of Roku in a research note on Friday. Finally, JPMorgan Chase & Co. lifted their target price on Roku from $115.00 to $125.00 and gave the stock an “overweight” rating in a research report on Friday, December 12th. One analyst has rated the stock with a Strong Buy rating, twenty-five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and a consensus target price of $123.85.

Roku Price Performance

NASDAQ:ROKU opened at $90.06 on Friday. The firm has a 50-day moving average of $103.95 and a two-hundred day moving average of $98.92. The stock has a market cap of $13.31 billion, a P/E ratio of 158.00 and a beta of 1.99. Roku has a 1-year low of $52.43 and a 1-year high of $116.66.

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

Insider Activity at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction on 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 of the company’s stock, valued at $6,428,245.32. This trade represents a 5.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Dan Jedda sold 3,000 shares of the firm’s stock in a transaction on Monday, December 15th. The shares were sold at an average price of $107.44, for a total value of $322,320.00. Following the completion of the sale, the chief financial officer owned 90,267 shares in the company, valued at $9,698,286.48. The trade was a 3.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 234,790 shares of company stock valued at $24,224,759. 13.98% of the stock is owned by insiders.

Institutional Trading of Roku

Large investors have recently modified their holdings of the company. AQR Capital Management LLC boosted its stake in Roku by 275.5% during the 3rd 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 during the period. Tableaux LLC bought a new stake in shares of Roku during the second quarter valued at approximately $1,746,000. Holocene Advisors LP boosted its position in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after buying an additional 1,285,585 shares during the period. Norges Bank bought a new position in Roku in the 4th quarter worth approximately $92,808,000. Finally, Acadian Asset Management LLC increased its position in Roku by 41.2% in the 2nd quarter. Acadian Asset Management LLC now owns 2,691,643 shares of the company’s stock valued at $236,545,000 after acquiring an additional 785,864 shares during the period. 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

Roku Company Profile

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.