Roku (NASDAQ:ROKU) Given New $140.00 Price Target at Needham & Company LLC

Key Points

• Needham raised its price target to $140 and kept a "buy" rating, joining other firms that have lifted targets and leaving a consensus analyst price target near $132.67 with most analysts rating the stock a Buy.
• Roku beat Q1 estimates and raised guidance, reporting $0.57 EPS vs. $0.34 expected and $1.25B revenue while lifting platform revenue outlook; ad revenue grew ~27% and the platform surpassed 100M streaming households.
• Valuation and insider selling pose risks: ROKU trades at a high P/E (~204) with elevated volatility (beta ~2.0), and insiders sold about 632,182 shares (~$67M) over the past three months.

Roku (NASDAQ:ROKU - Get Free Report) had its price objective lifted by research analysts at Needham & Company LLC from $110.00 to $140.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Needham & Company LLC's price objective would suggest a potential upside of 20.11% from the stock's previous close.

A number of other brokerages have also issued reports on ROKU. KeyCorp boosted their price target on shares of Roku from $130.00 to $140.00 and gave the stock an "overweight" rating in a research note on Friday, April 24th. Benchmark restated a "buy" rating on shares of Roku in a research note on Wednesday, February 4th. Oppenheimer upped their target price on shares of Roku from $105.00 to $120.00 and gave the stock an "outperform" rating in a research note on Friday, February 13th. Evercore restated an "outperform" rating and set a $150.00 target price on shares of Roku in a research note on Friday, February 13th. Finally, Wells Fargo & Company upped their target price on shares of Roku from $116.00 to $137.00 and gave the stock an "overweight" rating in a research note on Friday, February 13th. Twenty-one equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $132.67.

Roku Price Performance

Shares of NASDAQ:ROKU opened at $116.56 on Friday. The firm has a market capitalization of $17.18 billion, a PE ratio of 204.49 and a beta of 2.00. The firm's 50-day moving average is $100.40 and its two-hundred day moving average is $100.78. Roku has a 1 year low of $58.55 and a 1 year high of $120.00.

Roku (NASDAQ:ROKU - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.23. The company had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business's revenue for the quarter was up 22.4% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.19) earnings per share. Analysts expect that Roku will post 2.1 EPS for the current fiscal year.

Insider Activity

In related news, CFO Dan Jedda sold 7,000 shares of the company's stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $107.00, for a total value of $749,000.00. Following the completion of the transaction, the chief financial officer directly owned 78,115 shares of the company's stock, valued at $8,358,305. This represents a 8.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Neil D. Hunt sold 2,000 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $95.54, for a total value of $191,080.00. Following the completion of the transaction, the director directly owned 7,782 shares of the company's stock, valued at $743,492.28. This trade represents a 20.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 632,182 shares of company stock valued at $67,058,733. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its holdings in Roku by 2.5% in the third quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company's stock valued at $1,301,557,000 after purchasing an additional 322,858 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Roku by 10.6% in the fourth quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company's stock valued at $310,298,000 after purchasing an additional 274,024 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Roku by 7.3% in the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company's stock valued at $267,389,000 after purchasing an additional 168,214 shares in the last quarter. Holocene Advisors LP boosted its holdings in Roku by 352.3% in the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after purchasing an additional 1,285,585 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its holdings in Roku by 0.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company's stock valued at $163,786,000 after purchasing an additional 12,705 shares in the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat Q1 estimates and signaled stronger outlook — reported $0.57 EPS vs. $0.34 expected and $1.25B revenue; management raised its platform revenue guidance, which traders viewed as confirmation of ad demand recovering. Roku Stock Surges After Earnings. Why It's a Streaming Wars Winner.
• Positive Sentiment: Company raised its annual platform revenue forecast and cited continued advertiser spending — the guidance lift is a main driver behind the intraday rally. Roku raises annual platform revenue forecast, shares climb
• Positive Sentiment: Platform momentum: Roku disclosed platform revenue of roughly $1.13B and ad revenue of $612.7M (ad revenue up ~27%), and said it surpassed 100M streaming households — stronger monetization and scale underpin margin and cash-flow improvement. Roku Posts Strong Q1 Results Powered By Advertising And Subscriptions Gains
• Positive Sentiment: Howdy (Roku’s $2.99 service) has reached ~1M subscribers — a data point showing early traction for low-price, low-friction subscriptions that can diversify recurring revenue. Roku's $3 streaming service, Howdy, reaches 1M subs, per recent report
• Neutral Sentiment: Analyst/coverage pieces highlight improving free cash flow as the Roku Platform scales — useful context but reflects longer-term thesis rather than an immediate catalyst. Roku: Undeniable Cash Flow Growth As Roku Platform Scales
• Neutral Sentiment: Full Q1 earnings call transcript is available for detail on ad cadence, content deals and margin drivers — worth reviewing for guidance color and advertiser commentary. Roku, Inc. (ROKU) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Content and distribution deals continue — e.g., CW next‑day streaming and WWE NXT landing on The Roku Channel — these support engagement but are incremental to near-term monetization. The CW Network Sets Partnership With the Roku Channel for Next-Day Streaming of CW Entertainment Programming
• Negative Sentiment: Valuation and volatility remain risks — ROKU trades at a high P/E and has a beta ~2.0, so upside from beats can be amplified but so can downside if guidance or ad trends disappoint. ROKU stock profile and valuation metrics

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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