Roku (NASDAQ:ROKU) Stock Gets Downgrade from Rosenblatt Securities

Roku (NASDAQ:ROKU) was downgraded by investment analysts at Rosenblatt Securities from a “buy” rating to a “neutral” rating in a research report issued on Tuesday, Benzinga reports. They currently have a $160.00 price target on the stock. Rosenblatt Securities‘s price objective indicates a potential upside of 2.88% from the company’s current price.

A number of other brokerages have also recently commented on ROKU. UBS Group lifted their target price on shares of Roku from $126.00 to $172.00 and gave the company a “neutral” rating in a report on Friday, August 7th. Needham & Company LLC reiterated a “buy” rating on shares of Roku in a research note on Tuesday. Fox Advisors set a $157.00 price objective on shares of Roku in a research report on Friday, July 17th. Citigroup lifted their price objective on shares of Roku from $120.00 to $157.00 and gave the company a “neutral” rating in a research note on Friday, July 17th. Finally, BMO Capital Markets upgraded shares of Roku from a “market perform” rating to an “outperform” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nineteen have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $156.17.

Roku Stock Up 0.3%

NASDAQ:ROKU opened at $155.52 on Tuesday. The stock’s 50 day moving average price is $155.11 and its 200 day moving average price is $127.79. The company has a market capitalization of $23.08 billion, a PE ratio of 66.46 and a beta of 2.05. Roku has a 52-week low of $78.53 and a 52-week high of $160.22.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Monday, November 2nd. The company reported $1.20 EPS for the quarter, topping the consensus estimate of $0.55 by $0.65. Roku had a return on equity of 13.73% and a net margin of 6.82%. The company had revenue of $1.50 billion for the quarter, compared to analyst estimates of $1.41 billion. During the same quarter in the previous year, the company posted $0.16 earnings per share. The firm’s revenue was up 24.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Roku will post 2.97 EPS for the current fiscal year.

Insider Buying and Selling

In other Roku news, insider Gilbert Fuchsberg sold 4,824 shares of the business’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $155.64, for a total transaction of $750,807.36. Following the sale, the insider directly owned 40,168 shares in the company, valued at approximately $6,251,747.52. The trade was a 10.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Dan Jedda sold 7,000 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $152.84, for a total transaction of $1,069,880.00. Following the sale, the chief financial officer directly owned 67,811 shares in the company, valued at approximately $10,364,233.24. This represents a 9.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 96,195 shares of company stock valued at $14,854,525 in the last quarter. Corporate insiders own 13.45% of the company’s stock.

Institutional Trading of Roku

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Arrowstreet Capital Limited Partnership boosted its position in shares of Roku by 229.5% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after buying an additional 1,419,772 shares during the period. HBK Investments L P purchased a new position in shares of Roku during the second quarter valued at $163,604,000. Janus Henderson Group PLC raised its position in Roku by 1,320.4% during the first quarter. Janus Henderson Group PLC now owns 834,619 shares of the company’s stock valued at $78,967,000 after buying an additional 775,861 shares during the period. Bank of New York Mellon Corp acquired a new position in Roku during the second quarter valued at $105,216,000. Finally, Alua Capital Management LP purchased a new stake in Roku in the 1st quarter worth about $44,869,000. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku exceeded Q3 expectations. The company reported approximately $1.20 in adjusted earnings per share versus the $0.55 analyst consensus, while revenue reached $1.50 billion, ahead of estimates of $1.41 billion. Revenue increased 24.1% year over year, and net income climbed to $183 million from roughly $26 million a year earlier. MarketBeat Roku earnings report
• Positive Sentiment: Advertising momentum supported profitability. Advertising revenue grew 23%, with improved ad gross margins allowing Roku to retain more revenue as profit. Lower marketing expenses also contributed to the roughly sevenfold increase in net income. The Motley Fool Roku advertising earnings report
• Positive Sentiment: Fox deal uncertainty has eased somewhat. Fox said it had received all required foreign regulatory approvals for its proposed approximately $22 billion acquisition of Roku, narrowing the deal spread and reducing one obstacle to closing. Roku Fox deal regulatory approvals
• Neutral Sentiment: Because the Fox acquisition is pending, Roku will not hold an earnings call or provide financial guidance. That limits visibility into fourth-quarter trends and the company’s standalone outlook. Roku third quarter 2026 financial results
• Negative Sentiment: Roku expects higher costs in the fourth quarter, which could temper near-term margin expansion despite the strong Q3 performance. The planned removal of a popular feature may also create some user dissatisfaction, although its financial effect is likely limited. Roku feature removal

Roku Company Profile

Roku, Inc (NASDAQ: ROKU) operates a television streaming platform that connects consumers with digital entertainment. The company develops and licenses Roku OS, an operating system for smart televisions and streaming devices, and offers Roku-branded streaming players, Roku TVs, audio products and related accessories.

Roku also operates a platform business that distributes streaming content through its interface and supports content discovery, subscriptions and digital advertising. Its services include The Roku Channel, which provides a selection of ad-supported and premium entertainment, as well as tools that enable content providers and advertisers to reach streaming audiences.

Founded in 2002 by Anthony Wood, Roku initially became known for its streaming players and later expanded through partnerships with television manufacturers.