Roku (NASDAQ:ROKU) Upgraded to Strong-Buy at Arete Research

Roku (NASDAQ:ROKU) was upgraded by stock analysts at Arete Research to a “strong-buy” rating in a report released on Monday,Zacks.com reports.

A number of other analysts have also issued reports on the company. Pivotal Research boosted their target price on Roku from $120.00 to $135.00 and gave the company a “buy” rating in a research report on Monday, November 3rd. Wedbush lifted their price objective on Roku from $115.00 to $130.00 and gave the company an “outperform” rating in a research note on Thursday, December 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of Roku in a research note on Wednesday, October 8th. Susquehanna restated a “positive” rating and set a $130.00 target price on shares of Roku in a report on Friday, October 31st. Finally, Wall Street Zen upgraded shares of Roku from a “hold” rating to a “buy” rating in a research note on Sunday, December 7th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $118.12.

Roku Price Performance

NASDAQ ROKU opened at $113.28 on Monday. The stock has a market capitalization of $16.74 billion, a P/E ratio of -566.37 and a beta of 1.95. The firm’s 50-day moving average is $103.63 and its two-hundred day moving average is $96.79. Roku has a 12 month low of $52.43 and a 12 month high of $116.66.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, October 30th. The company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.07 by $0.09. Roku had a negative net margin of 0.61% and a negative return on equity of 1.08%. The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the previous year, the firm earned ($0.06) EPS. The business’s revenue was up 14.0% on a year-over-year basis. As a group, analysts anticipate that Roku will post -0.3 EPS for the current year.

Insider Transactions at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 59,094 shares of the company’s stock, valued at approximately $6,428,245.32. This represents a 5.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Dan Jedda sold 3,000 shares of Roku stock in a transaction on Monday, December 15th. The stock was sold at an average price of $107.44, for a total transaction of $322,320.00. Following the sale, the chief financial officer directly owned 90,267 shares of the company’s stock, valued at approximately $9,698,286.48. This trade represents a 3.22% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 343,282 shares of company stock valued at $36,686,139 over the last quarter. Insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

Several large investors have recently bought and sold shares of ROKU. Royal Bank of Canada lifted its holdings in Roku by 308.2% during the 1st quarter. Royal Bank of Canada now owns 171,559 shares of the company’s stock worth $12,085,000 after buying an additional 129,532 shares during the last quarter. Nissay Asset Management Corp Japan ADV raised its position in shares of Roku by 1.0% during the 1st quarter. Nissay Asset Management Corp Japan ADV now owns 15,575 shares of the company’s stock worth $1,097,000 after acquiring an additional 160 shares in the last quarter. Empowered Funds LLC lifted its stake in Roku by 18.6% during the first quarter. Empowered Funds LLC now owns 3,291 shares of the company’s stock worth $232,000 after purchasing an additional 515 shares during the last quarter. Woodline Partners LP boosted its holdings in Roku by 1,056.3% in the first quarter. Woodline Partners LP now owns 306,429 shares of the company’s stock valued at $21,585,000 after purchasing an additional 279,929 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Roku by 15.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 610,868 shares of the company’s stock valued at $43,030,000 after purchasing an additional 83,677 shares in the last quarter. 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: Roku adopted iSpot’s outcomes‑based ad metric, which could improve advertiser ROI and strengthen ad revenue measurement—an important potential revenue catalyst. Roku, iSpot bring outcome-based optimisation to streaming
• Positive Sentiment: Technical indicators show momentum: ROKU recently broke above the 20‑day moving average/”golden cross” signal, which can attract technical buyers and short‑term momentum flows. Roku Just Flashed Golden Cross Signal
• Positive Sentiment: Analyst conviction has improved: Arete upgraded Roku to a “buy” with a $132 target, adding upside narrative for growth‑oriented investors (this sits alongside other bullish analyst notes and a consensus Moderate Buy rating).
• Positive Sentiment: Structural tailwinds: industry data notes smart TVs remain the primary streaming device in U.S. homes, supporting Roku’s platform and device ecosystem long‑term. Smart TV Is Primary Streaming Device in U.S. Homes
• Neutral Sentiment: Product/UX and third‑party app items (e.g., KREX+ livestreaming availability, display‑resolution tips, device longevity stories) are consumer‑facing and matter for retention but are unlikely to move the stock materially by themselves. KREX+ app now available
• Neutral Sentiment: Mixed media coverage about user sentiment and product quirks (explanatory pieces) may affect brand perception but not immediate fundamentals.
• Negative Sentiment: Insider selling: Director Neil D. Hunt sold 2,000 shares and CAO Matthew C. Banks sold 729 shares in early January (SEC filings available). Some investors read director/exec sales as a negative near‑term signal. Neil D. Hunt Form 4 Matthew C. Banks Form 4
• Negative Sentiment: Market reaction: despite the positives above, ROKU traded lower today as investors balanced ad‑tech promise and analyst upgrades against execution and near‑term ad revenue visibility concerns. Zacks: Stock Declines While Market Improves

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.