Roku (NASDAQ:ROKU) Shares Gap Up - Still a Buy?

Key Points

• Roku shares gapped up at the open, rising from a prior close of $119.64 to an opening price of $124.81 before settling near $121.19. The move came amid elevated trading volume and continued momentum in the stock.
• Analysts remain bullish on Roku, with several firms raising price targets and the consensus rating sitting at “Moderate Buy.” The average target price now stands at $146.96, well above the current share price.
• Recent fundamentals and platform growth look solid, including a quarterly earnings beat and 22.4% year-over-year revenue growth. Roku is also expanding its free-content ecosystem, which could support engagement and ad inventory growth.

Roku, Inc. (NASDAQ:ROKU - Get Free Report)'s share price gapped up before the market opened on Friday . The stock had previously closed at $119.64, but opened at $124.81. Roku shares last traded at $121.1880, with a volume of 511,969 shares trading hands.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to expand its free-content ecosystem, with reports of nearly 80 free channels added in 2026 and four new free channels added for June, which could strengthen engagement and ad inventory. Roku Adds Nearly 80 Free Channels in 2026, Expanding Streaming Options
• Positive Sentiment: Consumer-focused coverage highlighting discounted Roku hardware, including the Roku Streaming Stick 4K and Roku-branded smart TVs, may reinforce brand visibility and device demand. Grab the Roku Streaming Stick 4K with voice remote for under $43
• Positive Sentiment: Roku has continued to outperform the market recently, reflecting improving sentiment around the company’s growth and streaming platform strength. Roku (ROKU) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: A report that CEO Anthony Wood sold 18,000 shares under a pre-arranged 10b5-1 plan is worth watching, but the transaction appears routine rather than a sign of negative fundamentals. Roku NASDAQ: ROKU CEO Anthony Wood Sells 18,000 Shares
• Neutral Sentiment: Coverage about how to use Apple Music on Roku TV and customize the home screen is largely informational and unlikely to materially affect the stock. Here's how you can use Apple Music on your Roku TV

Analysts Set New Price Targets

ROKU has been the topic of a number of research reports. Evercore reiterated an "outperform" rating and set a $185.00 target price on shares of Roku in a research report on Friday. Wedbush upped their price objective on shares of Roku from $140.00 to $155.00 and gave the stock an "outperform" rating in a report on Friday, May 1st. UBS Group set a $170.00 price objective on shares of Roku in a report on Thursday, May 28th. Needham & Company LLC upped their price objective on shares of Roku from $110.00 to $140.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Finally, Robert W. Baird upped their price objective on shares of Roku from $130.00 to $160.00 and gave the stock an "outperform" rating in a report on Monday, May 11th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Roku presently has a consensus rating of "Moderate Buy" and a consensus target price of $146.96.

Roku Stock Performance

The stock has a market cap of $18.52 billion, a P/E ratio of 94.19 and a beta of 2.06. The company's 50 day moving average price is $117.76 and its 200-day moving average price is $105.97.

Roku (NASDAQ:ROKU - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. The company had revenue of $1.25 billion during the quarter, compared to analyst estimates of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.19) earnings per share. On average, analysts forecast that Roku, Inc. will post 2.41 earnings per share for the current fiscal year.

Insider Activity at Roku

In related news, CFO Dan Jedda sold 15,000 shares of the stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $94.23, for a total transaction of $1,413,450.00. Following the completion of the transaction, the chief financial officer owned 85,115 shares in the company, valued at approximately $8,020,386.45. This represents a 14.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Gilbert Fuchsberg sold 9,593 shares of the company's stock in a transaction dated Friday, May 1st. The shares were sold at an average price of $125.52, for a total transaction of $1,204,113.36. Following the sale, the insider directly owned 50,863 shares in the company, valued at approximately $6,384,323.76. This trade represents a 15.87% decrease in their ownership of the stock. 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 685,168 shares of company stock worth $77,352,473 in the last ninety days. Corporate insiders own 13.45% of the company's stock.

Institutional Investors Weigh In On Roku

A number of institutional investors and hedge funds have recently modified their holdings of the company. Jefferies Financial Group Inc. purchased a new stake in Roku in the fourth quarter valued at approximately $1,345,000. Holocene Advisors LP raised its stake 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. Crossmark Global Holdings Inc. purchased a new stake in Roku in the third quarter valued at approximately $2,997,000. MH & Associates Securities Management Corp ADV purchased a new stake in Roku in the fourth quarter valued at approximately $2,398,000. Finally, Magnetar Financial LLC purchased a new stake in Roku in the third quarter valued at approximately $5,466,000. 86.30% of the stock is owned by hedge funds and other institutional investors.

About Roku

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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