Roku (NASDAQ:ROKU) Trading Down 1.5% - Should You Sell?

Key Points

• Roku shares fell 1.5% on the day, trading as low as $126.97 after closing at $129.03, with volume slightly below its recent average.
• Despite the pullback, Wall Street remains broadly bullish on Roku: 22 analysts rate it a Buy, and the consensus price target is $144.46, with some firms raising targets as high as $170.
• Recent fundamentals and product moves have been positive, including earnings that beat expectations, revenue growth of 22.4% year over year, and the addition of more than 20 free live TV channels ahead of the 2026 World Cup to boost engagement.

Roku, Inc. (NASDAQ:ROKU - Get Free Report) dropped 1.5% on Tuesday . The company traded as low as $126.97 and last traded at $127.1220. Approximately 1,901,217 shares were traded during trading, a decline of 7% from the average daily volume of 2,036,718 shares. The stock had previously closed at $129.03.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Wall Street’s average brokerage recommendation remains bullish on Roku, which is helping support the stock as investors look for confirmation that analysts still see upside in the streaming platform. Is It Worth Investing in Roku (ROKU) Based on Wall Street's Bullish Views?
• Positive Sentiment: Roku added more than 20 free live TV channels and launched new Soccer Zone coverage ahead of the 2026 World Cup, moves that could increase engagement and strengthen its advertising-supported ecosystem. Roku just added over 20 new free live TV channels
• Positive Sentiment: Roku CFO Dan Jedda is scheduled to speak at Evercore ISI’s Global TMT Conference, giving management another chance to reinforce the company’s growth story and answer investor questions. Roku CFO to Participate in Fireside Chat Hosted by Evercore ISI
• Neutral Sentiment: Some coverage is simply highlighting Roku’s recent strong run and comparing it with other long-term value ideas, which may attract attention but does not directly change fundamentals. Forget Roku: This Stock Is a Far Better Value for Long-Term Investors
• Negative Sentiment: Roku also drew an article questioning whether it is still the best investment versus alternatives, which can temper enthusiasm even if the company’s recent momentum remains intact. Is It Worth Investing in Roku (ROKU) Based on Wall Street's Bullish Views?

Analysts Set New Price Targets

ROKU has been the topic of a number of recent analyst reports. UBS Group set a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. Guggenheim lifted their price target on shares of Roku from $130.00 to $140.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Citigroup reissued a "market outperform" rating on shares of Roku in a research report on Thursday, May 28th. Wells Fargo & Company lifted their price target on shares of Roku from $137.00 to $167.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Finally, Needham & Company LLC lifted their price target on shares of Roku from $110.00 to $140.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Twenty-two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $144.46.

Roku Stock Down 1.5%

The business's fifty day moving average is $113.01 and its 200 day moving average is $104.54. The firm has a market capitalization of $18.74 billion, a price-to-earnings ratio of 95.58 and a beta of 2.04.

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, beating the consensus estimate of $0.34 by $0.23. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm had revenue of $1.25 billion for the quarter, compared to analyst estimates of $1.20 billion. During the same period in the previous year, the business earned ($0.19) EPS. The company's revenue was up 22.4% compared to the same quarter last year. Equities research analysts expect that Roku, Inc. will post 2.41 EPS for the current year.

Insider Transactions at Roku

In other Roku news, insider Gilbert Fuchsberg sold 9,593 shares of Roku stock in a transaction on Friday, May 1st. The shares were sold at an average price of $125.52, for a total value 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. The trade was a 15.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Matthew C. Banks sold 725 shares of Roku stock in a transaction on Friday, May 1st. The shares were sold at an average price of $125.52, for a total transaction of $91,002.00. Following the completion of the sale, the chief accounting officer owned 6,222 shares in the company, valued at $780,985.44. The trade was a 10.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 681,358 shares of company stock worth $75,642,627. 13.45% of the stock is owned by insiders.

Institutional Investors Weigh In On Roku

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Blue Trust Inc. grew its position in shares of Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company's stock valued at $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC bought a new position in shares of Roku in the 4th quarter valued at about $26,000. Bayban grew its position in shares of Roku by 1,300.0% in the 1st quarter. Bayban now owns 280 shares of the company's stock valued at $26,000 after acquiring an additional 260 shares during the period. WPG Advisers LLC bought a new position in shares of Roku in the 4th quarter valued at about $31,000. Finally, Safe Harbor Fiduciary LLC bought a new position in shares of Roku in the 4th quarter valued at about $31,000. 86.30% of the stock is currently owned by institutional investors and hedge funds.

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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