Roku (NASDAQ:ROKU) Stock Price Up 1.3% - Should You Buy?

Key Points

• Roku shares rose 1.3% to $157.57, while trading volume was 58% below the average session volume. The company has a $23.39 billion market capitalization and a high P/E ratio of 67.34.
• Roku’s outlook is supported by streaming advertising growth, the rollout of Roku OS 16 and the proposed approximately $22 billion Fox acquisition. Its latest quarterly results also exceeded expectations, with revenue up 21.9% year over year.
• Analyst sentiment remains mixed: Roku has an average “Hold” rating and a $156.17 target price, while the company’s upcoming third-quarter results will provide no earnings call or guidance because of the pending Fox transaction. Recent insider selling, including a $1.07 million CFO sale, is an additional consideration.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s stock price was up 1.3% during trading on Tuesday. The company traded as high as $157.57 and last traded at $157.57. 1,373,619 shares were traded during trading, a decline of 58% from the average session volume of 3,252,171 shares. The stock had previously closed at $155.54.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku was included among Zacks’ top-ranked, high-performing non-technology and non-AI stocks for the fourth quarter. Zacks cited strong earnings growth, improving estimates and business expansion, including continued momentum in streaming advertising. Zacks top-ranked stocks article
• Positive Sentiment: The approximately $22 billion Fox acquisition remains the largest support for ROKU. Fox reportedly views Roku’s streaming platform and advertising infrastructure as important to expanding beyond its traditional sports and news businesses, reinforcing the strategic rationale for the deal.
• Positive Sentiment: Roku OS 16 is rolling out to Roku TVs and streaming players. The update could improve engagement and strengthen Roku’s connected-TV advertising ecosystem. Roku OS 16 rollout
• Positive Sentiment: Roku is emphasizing that sports fandom increasingly includes highlights, podcasts, creator content and documentaries in addition to live games. That broader streaming audience may create more opportunities for targeted advertising and user engagement. Roku sports fandom article
• Neutral Sentiment: Roku will report third-quarter 2026 results after the market close on November 2. Because of the pending Fox transaction, the company will not hold an earnings call or provide financial guidance, limiting investors’ near-term visibility into results and expectations. Roku third-quarter results announcement
• Negative Sentiment: CFO Dan Jedda sold 7,000 shares worth approximately $1.07 million, reducing his holdings by 9.36%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it a weaker bearish signal, although repeated insider selling could modestly weigh on sentiment. Roku CFO Form 4 filing

Wall Street Analyst Weigh In

A number of research firms recently weighed in on ROKU. Needham & Company LLC restated a "buy" rating on shares of Roku in a report on Friday, August 7th. Seaport Research Partners downgraded Roku from a "buy" rating to a "neutral" rating in a report on Friday, August 7th. Citigroup upped their price target on Roku from $120.00 to $157.00 and gave the company a "neutral" rating in a research report on Friday, July 17th. JPMorgan Chase & Co. began coverage on Roku in a research note on Monday, August 24th. They issued a "neutral" rating and a $160.00 price target for the company. Finally, Zacks Research upgraded Roku from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and nineteen have given a Hold rating to the stock. Based on data from MarketBeat.com, Roku presently has an average rating of "Hold" and an average target price of $156.17.

Roku Stock Up 1.3%

The business's 50 day moving average is $154.85 and its two-hundred day moving average is $137.99. The firm has a market cap of $23.39 billion, a P/E ratio of 67.34 and a beta of 2.05.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported $1.08 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.47. Roku had a net margin of 6.82% and a return on equity of 13.73%. The business had revenue of $1.35 billion for the quarter, compared to analysts' expectations of $1.30 billion. During the same quarter in the prior year, the firm posted $0.07 earnings per share. The business's quarterly revenue was up 21.9% compared to the same quarter last year. Equities research analysts anticipate that Roku, Inc. will post 2.92 EPS for the current year.

Insider Buying and Selling at Roku

In other Roku news, CFO Dan Jedda sold 7,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $152.84, for a total transaction of $1,069,880.00. Following the transaction, the chief financial officer directly owned 67,811 shares in the company, valued at approximately $10,364,233.24. This represents a 9.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 554 shares of the firm's stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $152.21, for a total transaction of $84,324.34. Following the sale, the chief accounting officer directly owned 7,568 shares of the company's stock, valued at approximately $1,151,925.28. This trade represents a 6.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 119,285 shares of company stock valued at $18,224,865 over the last ninety days. Insiders own 13.45% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bayban raised its holdings in shares of Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company's stock worth $26,000 after acquiring an additional 260 shares during the last quarter. CX Institutional lifted its position in Roku by 44.1% in the 3rd quarter. CX Institutional now owns 281 shares of the company's stock valued at $43,000 after acquiring an additional 86 shares in the last quarter. Elevation Wealth Partners LLC boosted its stake in Roku by 208.7% during the 2nd quarter. Elevation Wealth Partners LLC now owns 318 shares of the company's stock valued at $44,000 after purchasing an additional 215 shares during the last quarter. Coppell Advisory Solutions LLC acquired a new position in Roku during the 2nd quarter valued at about $47,000. Finally, Hilton Head Capital Partners LLC boosted its stake in Roku by 175.0% during the 1st quarter. Hilton Head Capital Partners LLC now owns 550 shares of the company's stock valued at $52,000 after purchasing an additional 350 shares during the last quarter. Institutional investors and hedge funds own 86.30% of the company's stock.

About Roku

Roku, Inc NASDAQ: ROKU operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.

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