Roku, Inc. (NASDAQ:ROKU) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Roku has a consensus Moderate Buy from 26 analysts (21 buys, 5 holds) with an average 12‑month target of $128.21 and several brokerages (Jefferies, Wells Fargo, Piper Sandler) recently raising price targets.
• Roku’s platform surpassed 100 million streaming households and now represents ~88% of revenue with ~52% gross margins and 18% platform revenue growth YoY, while management guides to ~18% FY26 revenue growth and a 50% increase in adjusted EBITDA, signaling improving profitability and cash‑flow prospects.
• Insiders sold 426,375 shares (~$43.4M) over the past three months and a Zacks downgrade highlights execution risk; Roku’s Q1 earnings on April 30 is the near‑term catalyst to confirm ad growth and margin trends.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) have earned an average recommendation of "Moderate Buy" from the twenty-six research firms that are currently covering the stock, MarketBeat Ratings reports. Five research analysts have rated the stock with a hold recommendation and twenty-one have given a buy recommendation to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $128.2083.

ROKU has been the subject of a number of analyst reports. Jefferies Financial Group upped their price target on Roku from $135.00 to $140.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Arete Research set a $132.00 target price on Roku and gave the company a "buy" rating in a research note on Monday, January 5th. Rosenblatt Securities raised Roku from a "neutral" rating to a "buy" rating and upped their price target for the company from $106.00 to $118.00 in a research report on Friday, February 13th. Wells Fargo & Company upped their price target on Roku from $116.00 to $137.00 and gave the company an "overweight" rating in a research report on Friday, February 13th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $140.00 target price (up from $135.00) on shares of Roku in a research note on Friday, February 13th.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku says its platform now exceeds 100 million streaming households worldwide — an important scale inflection that expands ad inventory and pricing leverage for its connected-TV ad business. BusinessWire: 100M households
• Positive Sentiment: Analysis highlights that Roku’s platform revenue now dominates total revenue (~88%), with strong gross margins (~52%), 18% platform revenue growth YoY and management guidance implying ~18% FY26 revenue growth and a 50% increase in adjusted EBITDA — suggesting improving profitability and a path to meaningful free cash flow. Seeking Alpha: AI tailwind
• Positive Sentiment: Press and analyst coverage emphasizes Roku’s expanding ad engine and clearer segment reporting (Advertising vs. Subscriptions), which can help investors better model ad revenue per user and margin expansion. Yahoo: Ad engine expands
• Neutral Sentiment: Roku will report Q1 results on April 30 — this earnings print is a near-term catalyst that will confirm whether ad growth and margins track recent optimistic commentary. Earnings date
• Neutral Sentiment: Retail promotions (e.g., Streaming Stick discounts) and product/OS fixes (Instant Resume, restored local-TV access) may modestly boost device sales and engagement but are secondary to ad monetization. Mashable: Stick sale
• Negative Sentiment: Multiple insiders (CEO, CFO and others) sold shares this week under pre-arranged 10b5-1 plans — the volume of sales can spook some investors even if routine, adding short-term headline pressure. SEC Form 4 (CEO)
• Negative Sentiment: Zacks cut Roku from "strong-buy" to "hold," which could temper momentum from the milestone headlines and raises sensitivity to execution risk. Zacks downgrade

Insiders Place Their Bets

In other news, insider Gilbert Fuchsberg sold 3,250 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $310,602.50. Following the transaction, the insider directly owned 60,456 shares of the company's stock, valued at approximately $5,777,779.92. This trade represents a 5.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Anthony J. Wood sold 50,000 shares of Roku stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $90.79, for a total value of $4,539,500.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 426,375 shares of company stock valued at $43,390,928 over the last three months. 13.98% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Blue Trust Inc. increased its stake in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company's stock worth $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 about $26,000. Westfuller Advisors LLC acquired a new stake in shares of Roku during the 3rd quarter valued at about $30,000. WPG Advisers LLC acquired a new stake in shares of Roku during the 4th quarter valued at about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new position in shares of Roku in the 4th quarter valued at approximately $31,000. 86.30% of the stock is owned by institutional investors and hedge funds.

Roku Stock Performance

Shares of NASDAQ:ROKU opened at $116.19 on Friday. Roku has a 1 year low of $57.01 and a 1 year high of $116.81. The stock has a market capitalization of $17.13 billion, a P/E ratio of 203.85 and a beta of 2.00. The stock has a 50-day simple moving average of $95.64 and a 200-day simple moving average of $99.88.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.28 by $0.25. Roku had a return on equity of 3.40% and a net margin of 1.87%.The business had revenue of $1.39 billion during the quarter, compared to analysts' expectations of $1.35 billion. During the same quarter in the previous year, the business earned ($0.24) EPS. The company's revenue for the quarter was up 16.1% on a year-over-year basis. Analysts predict that Roku will post -0.3 earnings per share for the current 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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