Roku (NASDAQ:ROKU) Trading 3.1% Higher on Analyst Upgrade

Key Points

• Jefferies raised its price target to $140 and maintained a Buy rating, helping push Roku shares up ~3.1% intraday amid broader analyst optimism and a consensus "Moderate Buy" average price target of $127.79.
• Roku recently reported a quarterly beat (EPS $0.53 vs. $0.28, revenue $1.39B, +16.1% YoY), fueling bullish sentiment including unusual options call activity and analyst praise around its streaming-ad growth.
• Significant insider selling has occurred—about 343,944 shares (~$34.8M) sold over the last three months—which, despite heavy institutional ownership and hedge fund buying, could pressure sentiment for some investors.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) were up 3.1% during trading on Tuesday after Jefferies Financial Group raised their price target on the stock from $135.00 to $140.00. Jefferies Financial Group currently has a buy rating on the stock. Roku traded as high as $107.72 and last traded at $106.54. Approximately 2,411,241 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 3,344,065 shares. The stock had previously closed at $103.32.

Several other analysts have also commented on the stock. Arete Research set a $132.00 price objective on shares of Roku and gave the stock a "buy" rating in a research report on Monday, January 5th. Zacks Research raised shares of Roku from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, February 10th. Wells Fargo & Company lifted their price objective on shares of Roku from $116.00 to $137.00 and gave the stock an "overweight" rating in a research report on Friday, February 13th. Piper Sandler reaffirmed an "overweight" rating and issued a $140.00 price objective (up from $135.00) on shares of Roku in a research report on Friday, February 13th. Finally, Weiss Ratings raised shares of Roku from a "sell (d-)" rating to a "hold (c-)" rating in a research report on Tuesday, February 17th. One analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $127.79.

Insider Transactions at Roku

In other news, SVP Christopher T. Handman sold 2,999 shares of Roku stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $95.57, for a total value of $286,614.43. Following the completion of the transaction, the senior vice president owned 2,999 shares in the company, valued at $286,614.43. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of Roku stock in a transaction dated Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total transaction of $310,602.50. Following the completion of the transaction, the insider owned 60,456 shares of the company's stock, valued at $5,777,779.92. The trade was a 5.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 343,944 shares of company stock valued at $34,787,865. 13.98% of the stock is currently owned by insiders.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Jefferies raised its price target to $140 from $135 and kept a Buy rating, signaling confidence in Roku's ad-revenue trajectory and implying substantial upside from current levels. Benzinga: Jefferies raises price target
• Positive Sentiment: Unusual options activity: stock investors bought ~22,993 call contracts Tuesday (about +69% vs. typical daily call volume), indicating short‑term bullish positioning by options traders. (May signal expectation of upside into earnings or near‑term catalysts.)
• Positive Sentiment: Analyst/industry writeups (Zacks, Proactive) highlight Roku as a compelling streaming-ad play versus peers (including Alphabet), citing CTV ad growth, platform gains and attractive valuation — supporting further analyst optimism and investor interest. Zacks: Roku vs. Alphabet
• Neutral Sentiment: Coverage of streaming sector momentum (Zacks lists Roku among top streaming stocks to watch) increases visibility but is a broader theme that may already be priced in. Zacks: Top streaming stocks
• Neutral Sentiment: Roku scheduled Q1 2026 earnings release and webcast for April 30 (post‑market), a near-term event that could amplify moves in either direction depending on results and guidance. Business Wire: Roku Q1 earnings date
• Negative Sentiment: Insider selling: a disclosed insider sale totaling ~$21.6M was reported, which can be interpreted as supply pressure or insider monetization and may weigh on sentiment for some investors. American Banking News: Insider sale

Hedge Funds Weigh In On Roku

Several large investors have recently modified their holdings of the business. AQR Capital Management LLC grew its stake in Roku by 275.5% during the third quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company's stock valued at $258,897,000 after acquiring an additional 1,897,407 shares in the last quarter. Fred Alger Management LLC grew its stake in Roku by 7,087.7% during the fourth quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company's stock valued at $154,212,000 after acquiring an additional 1,401,664 shares in the last quarter. Holocene Advisors LP grew its stake in Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company's stock valued at $165,259,000 after acquiring an additional 1,285,585 shares in the last quarter. Norges Bank purchased a new position in Roku during the fourth quarter valued at approximately $92,808,000. Finally, Alyeska Investment Group L.P. grew its stake in Roku by 380.9% during the fourth quarter. Alyeska Investment Group L.P. now owns 882,915 shares of the company's stock valued at $95,787,000 after acquiring an additional 699,336 shares in the last quarter. Hedge funds and other institutional investors own 86.30% of the company's stock.

Roku Price Performance

The firm's 50 day moving average is $93.92 and its 200 day moving average is $99.57. The company has a market cap of $15.71 billion, a PE ratio of 186.92 and a beta of 2.00.

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