Wedbush Has Lowered Expectations for Roku (NASDAQ:ROKU) Stock Price

Roku (NASDAQ:ROKU - Get Free Report) had its price target reduced by stock analysts at Wedbush from $125.00 to $100.00 in a report released on Monday, Marketbeat.com reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's price objective would suggest a potential upside of 46.67% from the stock's previous close. Wedbush also issued estimates for Roku's Q1 2026 earnings at ($0.14) EPS, Q2 2026 earnings at $0.00 EPS, Q3 2026 earnings at $0.42 EPS and Q4 2026 earnings at $0.47 EPS.

A number of other brokerages have also recently issued reports on ROKU. Rosenblatt Securities restated a "neutral" rating and set a $86.00 target price on shares of Roku in a research report on Thursday, February 13th. Bank of America assumed coverage on Roku in a research note on Thursday, March 27th. They issued a "buy" rating and a $100.00 target price on the stock. Pivotal Research upgraded Roku from a "hold" rating to a "buy" rating and increased their target price for the company from $65.00 to $125.00 in a report on Friday, February 14th. Benchmark reissued a "buy" rating and issued a $130.00 price target on shares of Roku in a report on Monday, April 21st. Finally, Piper Sandler started coverage on Roku in a research note on Thursday, April 17th. They set a "neutral" rating and a $65.00 price objective on the stock. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, sixteen have given a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $90.39.

Roku Trading Down 1.6 %

Shares of ROKU traded down $1.10 during trading hours on Monday, reaching $68.18. The company had a trading volume of 4,146,136 shares, compared to its average volume of 3,684,022. The company has a market capitalization of $9.95 billion, a price-to-earnings ratio of -76.61 and a beta of 2.17. Roku has a 12-month low of $48.33 and a 12-month high of $104.96. The firm has a 50 day simple moving average of $70.04 and a 200-day simple moving average of $75.41.

Roku (NASDAQ:ROKU - Get Free Report) last released its quarterly earnings results on Thursday, February 13th. The company reported ($0.24) earnings per share for the quarter, topping analysts' consensus estimates of ($0.44) by $0.20. The business had revenue of $1.20 billion for the quarter, compared to analysts' expectations of $1.15 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. Sell-side analysts forecast that Roku will post -0.3 earnings per share for the current year.

Insider Buying and Selling at Roku

In related news, CEO Anthony J. Wood sold 25,000 shares of the stock in a transaction on Monday, February 10th. The stock was sold at an average price of $87.93, for a total transaction of $2,198,250.00. Following the completion of the sale, the chief executive officer now directly owns 26,538 shares in the company, valued at approximately $2,333,486.34. This trade represents a 48.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Matthew C. Banks sold 1,906 shares of the business's stock in a transaction dated Tuesday, March 4th. The shares were sold at an average price of $80.36, for a total value of $153,166.16. Following the completion of the transaction, the chief accounting officer now owns 7,256 shares in the company, valued at $583,092.16. This trade represents a 20.80 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 71,905 shares of company stock valued at $6,560,876 in the last quarter. Company insiders own 13.98% of the company's stock.

Institutional Trading of Roku

A number of institutional investors have recently added to or reduced their stakes in the business. Franklin Resources Inc. lifted its stake in shares of Roku by 14.5% in the 3rd quarter. Franklin Resources Inc. now owns 82,170 shares of the company's stock valued at $6,275,000 after purchasing an additional 10,416 shares during the last quarter. Everence Capital Management Inc. bought a new position in Roku during the fourth quarter valued at about $350,000. Oak Thistle LLC bought a new position in Roku during the fourth quarter valued at about $823,000. Avanza Fonder AB acquired a new stake in shares of Roku in the fourth quarter worth about $3,499,000. Finally, O Keefe Stevens Advisory Inc. boosted its stake in shares of Roku by 39.5% during the 4th quarter. O Keefe Stevens Advisory Inc. now owns 3,893 shares of the company's stock worth $289,000 after acquiring an additional 1,102 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

About Roku

Roku, Inc, together with its subsidiaries, operates a TV streaming platform in the United states and internationally. The company operates in two segments, Platform and Devices. Its streaming platform allows users to find and access TV shows, movies, news, sports, and others. The Platform segment offers digital advertising, including direct and programmatic video advertising, media and entertainment promotional spending, and related services; and streaming services distribution, such as subscription and transaction revenue shares, and sale of premium subscriptions and branded app buttons on remote controls.