Roku (NASDAQ:ROKU) Upgraded at Zacks Research

Zacks Research upgraded shares of Roku (NASDAQ:ROKU) from a hold rating to a strong-buy rating in a report published on Tuesday,Zacks.com reports.

Several other brokerages have also weighed in on ROKU. Wedbush upped their price objective on Roku from $115.00 to $130.00 and gave the company an “outperform” rating in a report on Thursday, December 11th. Wall Street Zen raised shares of Roku from a “hold” rating to a “buy” rating in a report on Sunday, December 7th. Rosenblatt Securities raised their price objective on shares of Roku from $101.00 to $106.00 and gave the company a “neutral” rating in a research report on Friday, October 31st. Citigroup reaffirmed an “outperform” rating on shares of Roku in a research note on Friday, January 9th. Finally, Bank of America boosted their target price on shares of Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.72.

Roku Price Performance

Roku stock opened at $82.93 on Tuesday. Roku has a 12-month low of $52.43 and a 12-month high of $116.66. The stock has a market capitalization of $12.25 billion, a PE ratio of -414.63 and a beta of 1.99. The firm has a 50 day simple moving average of $104.15 and a 200-day simple moving average of $98.88.

Roku (NASDAQ:ROKU) last released its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping analysts’ consensus estimates of $0.28 by $0.25. The firm had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The firm’s revenue for the quarter was up 16.1% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.24) earnings per share. On average, analysts forecast that Roku will post -0.3 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Matthew C. Banks sold 729 shares of Roku stock in a transaction on Friday, January 2nd. The stock was sold at an average price of $109.04, for a total transaction of $79,490.16. Following the transaction, the chief accounting officer owned 5,825 shares in the company, valued at approximately $635,158. The trade was a 11.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Neil D. Hunt sold 2,000 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $96.48, for a total value of $192,960.00. Following the transaction, the director directly owned 7,782 shares in the company, valued at $750,807.36. The trade was a 20.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 234,790 shares of company stock worth $24,224,759 in the last quarter. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several institutional investors and hedge funds have recently bought and sold shares of ROKU. Blue Trust Inc. grew its position in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock valued at $25,000 after purchasing an additional 204 shares in the last quarter. Aventura Private Wealth LLC acquired a new stake in shares of Roku during the 4th quarter valued at $26,000. WPG Advisers LLC purchased a new position in shares of Roku during the 4th quarter valued at $31,000. Westfuller Advisors LLC acquired a new position in shares of Roku in the third quarter worth $30,000. Finally, Root Financial Partners LLC acquired a new position in shares of Roku in the third quarter worth $33,000. Hedge funds and other institutional investors 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 EPS and revenue beat street expectations — Roku reported $0.53 EPS vs. a $0.28 consensus and revenue of $1.39B vs. $1.35B expected, indicating improving profitability and top‑line strength. Roku Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Raising FY revenue guide above consensus — Roku issued FY‑2026 revenue guidance (~$5.5B) above Street estimates and flagged a rebound in the digital ad market, supporting upside to ad‑revenue growth assumptions. Roku forecasts annual revenue above estimates
• Positive Sentiment: Product/monetization initiatives — Management signaled plans for premium subscription bundles and highlighted ad‑growth drivers (including an Amazon partnership), which could diversify ARPU and margins over time. Roku Breezes Past Wall Street’s Q4 Earnings Outlook, Signals Plan For Premium Subscription Bundles
• Neutral Sentiment: Analyst sentiment shifted positive — Zacks upgraded Roku to a “Strong Buy”, reflecting improving earnings momentum; upgrades can support sentiment but don’t guarantee continued price gains. Roku Upgraded to Strong Buy
• Neutral Sentiment: Investor materials and call — Roku released its Q4 and full‑year 2025 results and hosted a webcast (useful for detail but neutral until guidance/remarks change view). 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 prompt cautious investor reaction and add to near‑term selling pressure. SEC Form 4 – CEO Sale
• Negative Sentiment: Profitability/forward estimates still mixed — Despite the beat, Roku reported a small negative net margin and negative ROE; some sell‑side models still expect negative FY EPS, keeping valuation and path‑to‑consistent profitability in focus. 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.