Wedbush Has Pessimistic Outlook of Roku Q3 Earnings

Roku, Inc. (NASDAQ:ROKU - Free Report) - Wedbush decreased their Q3 2025 earnings estimates for Roku in a research note issued to investors on Friday, May 2nd. Wedbush analyst A. Reese now anticipates that the company will earn $0.06 per share for the quarter, down from their previous forecast of $0.09. Wedbush has a "Outperform" rating and a $100.00 price target on the stock. The consensus estimate for Roku's current full-year earnings is ($0.30) per share. Wedbush also issued estimates for Roku's Q3 2026 earnings at $0.49 EPS, FY2026 earnings at $0.85 EPS and FY2027 earnings at $1.84 EPS.

ROKU has been the topic of a number of other reports. JMP Securities reissued a "market outperform" rating and set a $95.00 price target on shares of Roku in a research report on Friday. Bank of America initiated coverage on Roku in a report on Thursday, March 27th. They set a "buy" rating and a $100.00 target price on the stock. Guggenheim restated a "buy" rating and issued a $100.00 price target on shares of Roku in a report on Friday. Jefferies Financial Group upgraded Roku from an "underperform" rating to a "hold" rating and lifted their price objective for the company from $55.00 to $100.00 in a report on Thursday, February 20th. Finally, Citigroup reissued an "outperform" rating on shares of Roku in a research note on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, Roku currently has a consensus rating of "Moderate Buy" and an average target price of $89.46.

Roku Price Performance

Roku stock opened at $61.55 on Monday. Roku has a fifty-two week low of $48.33 and a fifty-two week high of $104.96. The firm has a market capitalization of $8.98 billion, a price-to-earnings ratio of -69.16 and a beta of 2.06. The company's 50 day simple moving average is $68.66 and its 200 day simple moving average is $75.15.

Roku (NASDAQ:ROKU - Get Free Report) last released its earnings results on Thursday, May 1st. The company reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.27) by $0.08. The firm had revenue of $1.02 billion for the quarter, compared to analyst estimates of $1.01 billion. Roku had a negative return on equity of 5.34% and a negative net margin of 3.15%. The company's quarterly revenue was up 15.8% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.35) earnings per share.

Insider Activity at Roku

In other Roku news, CFO Dan Jedda sold 5,000 shares of the firm's stock in a transaction on Friday, February 14th. The stock was sold at an average price of $100.40, for a total transaction of $502,000.00. Following the completion of the sale, the chief financial officer now owns 58,555 shares of the company's stock, valued at $5,878,922. This trade represents a 7.87 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Anthony J. Wood sold 25,000 shares of Roku 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 transaction, the chief executive officer now directly owns 26,538 shares of the company's stock, valued at approximately $2,333,486.34. This trade represents a 48.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 72,111 shares of company stock worth $6,575,362. Insiders own 13.98% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of ROKU. Geneos Wealth Management Inc. boosted its holdings in shares of Roku by 369.9% during the fourth quarter. Geneos Wealth Management Inc. now owns 343 shares of the company's stock worth $25,000 after acquiring an additional 270 shares during the period. Garde Capital Inc. acquired a new stake in Roku during the 1st quarter worth approximately $25,000. Vision Financial Markets LLC bought a new stake in Roku in the 4th quarter valued at $30,000. Golden State Wealth Management LLC grew its holdings in Roku by 125.4% in the 1st quarter. Golden State Wealth Management LLC now owns 444 shares of the company's stock valued at $31,000 after buying an additional 247 shares in the last quarter. Finally, Game Plan Financial Advisors LLC bought a new position in Roku during the 4th quarter worth $37,000. Institutional investors and hedge funds own 86.30% of the company's stock.

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.

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