Roku (NASDAQ:ROKU) Rating Increased to Buy at Arete Research

Arete Research upgraded shares of Roku (NASDAQ:ROKU) from a neutral rating to a buy rating in a research report released on Monday, Marketbeat reports. Arete Research currently has $132.00 price target on the stock, up from their previous price target of $73.00.

A number of other equities analysts have also issued reports on ROKU. Evercore ISI restated a “positive” rating on shares of Roku in a research report on Friday, October 31st. Wedbush raised their price objective on shares of Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a research report on Thursday, December 11th. Wells Fargo & Company restated an “overweight” rating on shares of Roku in a research note on Monday. Wall Street Zen raised Roku from a “hold” rating to a “buy” rating in a research note on Sunday, December 7th. Finally, Piper Sandler raised Roku from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $88.00 to $135.00 in a report on Monday, November 3rd. Twenty-three equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $118.12.

Roku Price Performance

NASDAQ ROKU opened at $110.75 on Monday. The firm’s fifty day moving average price is $103.63 and its 200 day moving average price is $96.79. The company has a market capitalization of $16.36 billion, a price-to-earnings ratio of -552.35 and a beta of 1.95. Roku has a 12 month low of $52.43 and a 12 month high of $116.66.

Roku (NASDAQ:ROKU) last posted its earnings results on Thursday, October 30th. The company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.09. The business had revenue of $1.21 billion during the quarter, compared to the consensus estimate of $1.21 billion. Roku had a negative return on equity of 1.08% and a negative net margin of 0.61%.The business’s quarterly revenue was up 14.0% on a year-over-year basis. During the same period in the previous year, the business earned ($0.06) EPS. As a group, sell-side analysts forecast that Roku will post -0.3 earnings per share for the current year.

Insider Buying and Selling

In other news, insider Charles Collier sold 118,088 shares of the stock in a transaction dated Friday, October 31st. The shares were sold at an average price of $115.00, for a total value of $13,580,120.00. Following the completion of the transaction, the insider owned 200 shares in the company, valued at $23,000. This trade represents a 99.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Gilbert Fuchsberg sold 3,250 shares of the business’s stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $108.78, for a total transaction of $353,535.00. Following the sale, the insider directly owned 59,094 shares in the company, valued at approximately $6,428,245.32. This represents a 5.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 343,282 shares of company stock valued at $36,686,139 over the last quarter. Company insiders own 13.98% of the company’s stock.

Institutional Investors Weigh In On Roku

Hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC raised its holdings in Roku by 9.5% in the 3rd quarter. GAMMA Investing LLC now owns 1,114 shares of the company’s stock valued at $112,000 after acquiring an additional 97 shares in the last quarter. Cornerstone Wealth Management LLC increased its position in shares of Roku by 3.8% during the third quarter. Cornerstone Wealth Management LLC now owns 2,728 shares of the company’s stock valued at $273,000 after purchasing an additional 100 shares during the period. Thoroughbred Financial Services LLC raised its stake in shares of Roku by 1.0% in the third quarter. Thoroughbred Financial Services LLC now owns 9,945 shares of the company’s stock valued at $995,000 after purchasing an additional 100 shares in the last quarter. Aviance Capital Partners LLC lifted its position in Roku by 2.6% in the third quarter. Aviance Capital Partners LLC now owns 4,172 shares of the company’s stock worth $418,000 after purchasing an additional 106 shares during the period. Finally, O Keefe Stevens Advisory Inc. boosted its stake in Roku by 1.8% during the third quarter. O Keefe Stevens Advisory Inc. now owns 6,233 shares of the company’s stock worth $624,000 after buying an additional 113 shares in the last quarter. 86.30% of the stock is currently owned by institutional investors and hedge funds.

More Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Analyst upgrade: Arete Research raised Roku from “neutral” to “buy” and lifted its price target to $132, giving the stock a fresh upside thesis that can attract buy-side interest. Read More.
• Positive Sentiment: Ad-measurement improvement: Roku began using iSpot’s outcomes-based metric to improve ad targeting and measurement, which could boost ad revenue monetization and advertiser demand over time. Read More.
• Positive Sentiment: Technical tailwind: Roku recently cleared near-term resistance (a golden-cross / break above the 20-day moving average), a signal that may attract momentum and technical traders. Read More.
• Positive Sentiment: Structural market support: industry data shows smart TVs remain the primary streaming device in U.S. homes, supporting Roku’s platform reach and long-term ad/device opportunity. Read More.
• Neutral Sentiment: Product and UX items (third‑party apps, resolution tips, device lifespan) surfaced in consumer stories — relevant for retention and satisfaction but unlikely to move the stock without broader adoption or material impact. Read More. Read More.
• Neutral Sentiment: Analyst coverage remains constructive overall (consensus target ~$118.12, many buy ratings), which provides longer-term support but hasn’t decisively driven today’s trade. Read More.
• Negative Sentiment: Insider selling: Director Neil D. Hunt sold 2,000 shares and CAO Matthew C. Banks sold 729 shares in early January, trimming insider stakes — a signal some investors read as a negative or profit-taking cue. Read More. Read More.
• Negative Sentiment: Near-term market reaction: coverage notes the stock traded lower today as investors weighed execution and ad‑revenue visibility against positive product/tech signals and insider sales. Read More.

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.