Roku (NASDAQ:ROKU) Trading 3.7% Higher After Analyst Upgrade

Key Points

• Shares jumped 3.7% after Guggenheim raised its price target from $115 to $130 and kept a Buy rating, pushing Roku to about $118 intraday.
• Consensus among analysts is a Moderate Buy (21 Buy vs. 5 Hold) with an average price target around $128.83, supporting upside expectations.
• Notable insider selling could weigh on the stock: director Charles Collier sold 205,821 shares (~$21.6M) and insiders sold 632,182 shares (~$67.1M) over the last quarter.

Shares of Roku, Inc. (NASDAQ:ROKU - Get Free Report) shot up 3.7% during trading on Wednesday after Guggenheim raised their price target on the stock from $115.00 to $130.00. Guggenheim currently has a buy rating on the stock. Roku traded as high as $118.41 and last traded at $118.34. 2,508,353 shares were traded during trading, a decline of 24% from the average session volume of 3,284,732 shares. The stock had previously closed at $114.11.

Other equities research analysts also recently issued research reports about the stock. UBS Group reissued a "neutral" rating and set a $110.00 price objective on shares of Roku in a research report on Friday, February 13th. Citigroup reaffirmed a "market outperform" rating on shares of Roku in a research report on Monday, March 2nd. Benchmark reaffirmed a "buy" rating on shares of Roku in a research note on Wednesday, February 4th. Arete Research set a $132.00 target price on Roku and gave the stock a "buy" rating in a report on Monday, January 5th. Finally, Bank of America lifted their price target on Roku from $115.00 to $140.00 and gave the company a "buy" rating in a research note on Monday, January 12th. Twenty-one research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $128.83.

Insider Buying and Selling at Roku

In other news, insider Charles Collier sold 205,821 shares of the business's stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $105.00, for a total value of $21,611,205.00. Following the sale, the insider owned 11,131 shares of the company's stock, valued at $1,168,755. The trade was a 94.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 3,250 shares of the 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 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. The SEC filing for this sale provides additional information. Insiders sold 632,182 shares of company stock valued at $67,058,733 over the last quarter. Insiders own 13.98% of the company's stock.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Guggenheim raised its price target to $130 and kept a Buy rating, giving formal analyst support for further upside and helping lift investor sentiment. Read More.
• Positive Sentiment: Content/partnership tailwind — Peacock’s ad‑free (Premium Plus) tier will be available on Roku Premium subscriptions under a new agreement, which can increase ARPU and platform revenue mix if adoption is strong. Read More.
• Positive Sentiment: Engagement features and device promotions — Roku launched the “Roku City Dash” interactive screensaver game (user engagement) and retailers are discounting Roku TVs and Streambar SE hardware, which can lift active accounts and ad impressions if sustained. Read More. Read More. Read More.
• Neutral Sentiment: Technical momentum — recent multi‑week run and a breakout from technical bases drove volume and positioning ahead of Q1 results; this amplifies moves both ways depending on the print/guidance. Read More.
• Neutral Sentiment: Analyst landscape — consensus remains a moderate buy with average targets near the high‑$120s; upgrades/raises (including Guggenheim) are helping the tone but valuation is elevated. Read More.
• Negative Sentiment: Large insider selling — director/insider Charles Collier sold ~205,807 shares (about $23.7M) under a 10b5‑1 plan, which can be interpreted as supply pressure even though it was pre‑arranged. Read More.
• Negative Sentiment: Short‑term pullback/profit taking — after the rally some reports note Roku fell more than the broader market as traders trimmed positions; a weak Q1 or cautious guidance could reverse recent gains. Read More.

Hedge Funds Weigh In On Roku

A number of large investors have recently modified their holdings of the business. Apollon Wealth Management LLC raised its holdings in Roku by 1.5% during the fourth quarter. Apollon Wealth Management LLC now owns 6,450 shares of the company's stock worth $700,000 after acquiring an additional 96 shares in the last quarter. GAMMA Investing LLC grew its stake in Roku by 9.5% in the third quarter. GAMMA Investing LLC now owns 1,114 shares of the company's stock valued at $112,000 after purchasing an additional 97 shares in the last quarter. Cornerstone Wealth Management LLC increased its position in shares of Roku by 3.8% during the 3rd quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company's stock worth $273,000 after purchasing an additional 100 shares during the last quarter. Thoroughbred Financial Services LLC raised its stake in shares of Roku by 1.0% during the 3rd quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company's stock worth $995,000 after purchasing an additional 100 shares in the last quarter. Finally, Aviance Capital Partners LLC raised its stake in shares of Roku by 2.6% during the 3rd quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company's stock worth $418,000 after purchasing an additional 106 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

Roku Stock Performance

The firm has a fifty day moving average price of $96.70 and a 200 day moving average price of $100.03. The company has a market cap of $17.45 billion, a price-to-earnings ratio of 207.62 and a beta of 2.00.

Roku (NASDAQ:ROKU - Get Free Report) last issued its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, topping analysts' consensus estimates of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.35 billion. During the same period in the previous year, the company earned ($0.24) earnings per share. The firm's revenue for the quarter was up 16.1% on a year-over-year basis. On average, analysts expect that Roku, Inc. will post 2.1 EPS for the current fiscal year.

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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