Roku (NASDAQ:ROKU) Trading 3.7% Higher – Should You Buy?

Roku, Inc. (NASDAQ:ROKU) shares were up 3.7% during trading on Wednesday . The stock traded as high as $98.95 and last traded at $97.51. Approximately 4,546,742 shares traded hands during mid-day trading, an increase of 18% from the average daily volume of 3,855,676 shares. The stock had previously closed at $94.07.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku rolled out “Roklue,” an interactive, gamified discovery feature (launched around the Oscars) designed to drive session time and steer viewers to new shows — a direct play to boost ad impressions and subscriptions. Roku Gamifies Movies and TV Show Lineup With Launch of ‘Roklue’
• Positive Sentiment: Analysts and commentary highlight Roku’s shift to profitability, record free cash flow and raised 2026 revenue targets (~$5.5B), which underpin upward estimate revisions and buy-side interest. ROKU Just Overtook the 200-Day Moving Average
• Positive Sentiment: ROKU has crossed above its 200‑day moving average — a technical signal that can attract momentum traders and supports the current rally. Zacks: Roku Just Overtook the 200-Day Moving Average
• Positive Sentiment: Feature improvements — Roku added a requested Search tool to its Live TV Guide and other discovery tools that should increase FAST engagement and ad monetization over time. Roku finally rolls out Search tool within the Live TV Guide users requested
• Neutral Sentiment: Device discounts (e.g., Roku Stick and a Hisense Roku TV on sale) can boost activations and platform scale but may compress near-term hardware margins — net effect depends on conversion to ads/subs. Hisense 32-Inch Smart Roku TV Drops Under $100
• Neutral Sentiment: Ongoing media coverage and “is it a buy?” pieces reflect growing optimism but also highlight valuation/execution questions; consensus still skews to Moderate Buy with a mid‑$120s target. Is Roku (ROKU) a Buy as Wall Street Analysts Look Optimistic?
• Neutral Sentiment: Management outreach: CFO Dan Jedda will speak at Deutsche Bank’s Media/Internet conference next week — could provide incremental color but typically moves the stock only if new guidance or metrics are disclosed. Roku CFO to Participate in Fireside Chat
• Negative Sentiment: Clustered insider selling — multiple insiders (SVP, director, CAO and others) disclosed sales totaling several thousand shares at ~$95–$100. While possibly routine, clustered sales can create short‑term selling pressure and raise investor questions about insider conviction. Insider Form 4 Filings

Analysts Set New Price Targets

Several research firms have issued reports on ROKU. Citigroup reissued a “market outperform” rating on shares of Roku in a research note on Monday. KeyCorp increased their price objective on Roku from $128.00 to $130.00 and gave the stock an “overweight” rating in a report on Friday, February 13th. Wells Fargo & Company boosted their target price on Roku from $116.00 to $137.00 and gave the company an “overweight” rating in a research note on Friday, February 13th. Guggenheim upped their price target on Roku from $110.00 to $115.00 and gave the stock a “buy” rating in a research report on Thursday, December 4th. Finally, Moffett Nathanson reiterated a “neutral” rating and issued a $100.00 price objective on shares of Roku in a report on Friday, February 13th. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $125.40.

Roku Stock Performance

The firm has a fifty day moving average price of $99.47 and a 200 day moving average price of $99.43. The company has a market cap of $14.82 billion, a price-to-earnings ratio of 176.37 and a beta of 1.98.

Roku (NASDAQ:ROKU) last announced its quarterly earnings results on Thursday, February 12th. The company reported $0.53 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The firm had revenue of $1.39 billion during the quarter, compared to analysts’ expectations of $1.35 billion. During the same quarter last year, the company posted ($0.24) earnings per share. The company’s revenue for the quarter was up 16.1% compared to the same quarter last year. On average, analysts expect that Roku, Inc. will post -0.3 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Charles Collier sold 1,715 shares of the firm’s stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $100.00, for a total value of $171,500.00. Following the completion of the sale, the insider directly owned 11,131 shares of the company’s stock, valued at $1,113,100. This trade represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Neil D. Hunt sold 2,000 shares of Roku stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $97.70, for a total value of $195,400.00. Following the transaction, the director owned 7,782 shares of the company’s stock, valued at $760,301.40. This represents a 20.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 229,374 shares of company stock worth $23,695,783 in the last three months. Insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

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

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.