Investors Buy Large Volume of Roku Call Options (NASDAQ:ROKU)

Key Points

• Traders purchased an unusually large volume of call options — 22,993 contracts, roughly 69% above the typical call volume — likely reflecting bullish bets or hedges ahead of Roku’s Q1 earnings on April 30.
• Analysts have been raising targets, with several firms moving price objectives into the $120–$140 range (Jefferies at $140), leaving a consensus rating of Moderate Buy and an average price target of $127.79.
• Significant insider selling was reported, including Charles Collier’s sale of 205,821 shares for about $21.6M, and insiders have sold 343,944 shares in the past 90 days — a potentially negative signal for some investors.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) saw some unusual options trading activity on Tuesday. Stock traders purchased 22,993 call options on the stock. This represents an increase of approximately 69% compared to the typical volume of 13,573 call options.

Analysts Set New Price Targets

Several research firms have recently weighed in on ROKU. Robert W. Baird raised their target price on shares of Roku from $110.00 to $120.00 and gave the stock an "outperform" rating in a research report on Monday, April 6th. KeyCorp upped their price target on shares of Roku from $128.00 to $130.00 and gave the company an "overweight" rating in a research report on Friday, February 13th. Arete Research set a $132.00 price target on shares of Roku and gave the stock a "buy" rating in a research note on Monday, January 5th. Piper Sandler reissued an "overweight" rating and set a $140.00 price objective (up from $135.00) on shares of Roku in a research report on Friday, February 13th. Finally, Moffett Nathanson restated a "neutral" rating and issued a $100.00 price objective on shares of Roku in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, Roku currently has a consensus rating of "Moderate Buy" and an average price target of $127.79.

Insider Activity at Roku

In related news, insider Charles Collier sold 205,821 shares of the company's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total value of $21,611,205.00. Following the completion of the sale, the insider directly owned 11,131 shares of the company's stock, valued at $1,168,755. This represents a 94.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Dan Jedda sold 15,000 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $94.23, for a total value of $1,413,450.00. Following the transaction, the chief financial officer owned 85,115 shares in the company, valued at $8,020,386.45. This represents a 14.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 343,944 shares of company stock valued at $34,787,865. Corporate insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC grew its holdings in shares of Roku by 275.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock worth $258,897,000 after acquiring an additional 1,897,407 shares during the period. Fred Alger Management LLC raised its holdings in Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock worth $154,212,000 after purchasing an additional 1,401,664 shares during the last quarter. Holocene Advisors LP boosted its position in 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 purchasing an additional 1,285,585 shares in the last quarter. Norges Bank purchased a new stake in Roku during the fourth quarter worth $92,808,000. Finally, Alyeska Investment Group L.P. grew its holdings in Roku by 380.9% in the fourth quarter. Alyeska Investment Group L.P. now owns 882,915 shares of the company's stock valued at $95,787,000 after purchasing an additional 699,336 shares during the last quarter. 86.30% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Jefferies raised its price target to $140 and reiterated a Buy rating, citing stronger ad trends and a favorable revenue mix; the new PT implies meaningful upside from current levels. Jefferies raises PT
• Positive Sentiment: Unusually large options activity: traders bought ~22,993 call contracts (≈69% above average call volume), which often signals bullish bets or hedging ahead of an event (Roku’s Q1 print). No link available for this item.
• Positive Sentiment: Analyst/industry coverage is favorable — Zacks highlights Roku as the more compelling CTV ad play versus Alphabet given ad growth, platform gains and valuation, reinforcing investor interest in Roku’s ad-monetization story. Roku vs Alphabet
• Positive Sentiment: Additional bullish coverage ahead of earnings: Proactive reports analysts expect stronger-than-expected results driven by improving advertising trends and an improved revenue mix. Proactive investor coverage
• Neutral Sentiment: Roku set its Q1 2026 earnings release for April 30 (after-market) with a 2:00 PM PT webcast — this is the near-term catalyst that likely explains positioning and elevated activity. Earnings date announcement
• Neutral Sentiment: Broader streaming sector commentary (Zacks list of streaming stocks) highlights industry tailwinds — ad growth, sports/content and global expansion — which supports the sector narrative but is not company-specific. Top streaming stocks to watch
• Negative Sentiment: An insider sale was reported (~$21.6M), which can be viewed as a near-term negative by some investors even if it’s for personal liquidity rather than a signal on fundamentals. Insider sale report

Roku Trading Up 3.3%

Shares of Roku stock traded up $3.36 during trading hours on Tuesday, hitting $106.68. 860,441 shares of the company were exchanged, compared to its average volume of 3,321,205. Roku has a 1 year low of $57.01 and a 1 year high of $116.66. The business has a 50-day moving average of $93.92 and a 200-day moving average of $99.57. The stock has a market capitalization of $15.73 billion, a price-to-earnings ratio of 187.24 and a beta of 2.00.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings data on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.25. The firm had revenue of $1.39 billion for the quarter, compared to analyst estimates of $1.35 billion. Roku had a net margin of 1.87% and a return on equity of 3.40%. Roku's quarterly revenue was up 16.1% on a year-over-year basis. During the same period last year, the firm posted ($0.24) EPS. As a group, research analysts anticipate that Roku will post -0.3 earnings per share for the current fiscal year.

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.

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