Roku (NASDAQ:ROKU) Stock Rating Lowered by Zacks Research

Roku (NASDAQ:ROKU) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Tuesday,Zacks.com reports.

Other research analysts have also issued reports about the stock. Stifel Nicolaus set a $160.00 target price on shares of Roku in a research report on Monday, March 2nd. Benchmark reiterated a “buy” rating on shares of Roku in a research report on Wednesday, February 4th. Evercore reissued an “outperform” rating and set a $150.00 price target on shares of Roku in a research note on Friday, February 13th. Bank of America upped their price target on Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a report on Monday, January 12th. Finally, Robert W. Baird raised their price objective on Roku from $110.00 to $120.00 and gave the company an “outperform” rating in a research note on Monday, April 6th. Twenty-one analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $127.79.

Roku Stock Performance

Roku stock opened at $109.33 on Tuesday. The company has a market cap of $16.12 billion, a P/E ratio of 191.81 and a beta of 2.00. Roku has a one year low of $57.01 and a one year high of $116.66. The business has a fifty day moving average of $94.51 and a two-hundred day moving average of $99.68.

Roku (NASDAQ:ROKU) last posted its quarterly 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. The business had revenue of $1.39 billion for the quarter, compared to analysts’ expectations of $1.35 billion. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business’s revenue for the quarter was up 16.1% on a year-over-year basis. During the same period in the prior year, the company posted ($0.24) EPS. Sell-side analysts predict that Roku will post -0.3 EPS for the current year.

Insiders Place Their Bets

In related news, CFO Dan Jedda sold 15,000 shares of Roku stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $94.23, for a total transaction of $1,413,450.00. Following the completion of the transaction, the chief financial officer directly owned 85,115 shares in the company, valued at $8,020,386.45. The trade was a 14.98% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Neil D. Hunt sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $95.54, for a total value of $191,080.00. Following the completion of the sale, the director directly owned 7,782 shares in the company, valued at approximately $743,492.28. The trade was a 20.45% 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. Over the last ninety days, insiders sold 390,944 shares of company stock valued at $39,509,185. Corporate insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of institutional investors have recently made changes to their positions in ROKU. Vanguard Group Inc. increased its position in Roku by 2.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,998,674 shares of the company’s stock worth $1,301,557,000 after purchasing an additional 322,858 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of Roku by 10.6% during the 4th quarter. AQR Capital Management LLC now owns 2,860,149 shares of the company’s stock worth $310,298,000 after purchasing an additional 274,024 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of Roku by 7.3% during the fourth quarter. Geode Capital Management LLC now owns 2,464,130 shares of the company’s stock worth $267,389,000 after buying an additional 168,214 shares in the last quarter. Holocene Advisors LP grew its holdings in shares of Roku by 352.3% during the third quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after buying an additional 1,285,585 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. raised its position in shares of Roku by 0.8% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,509,686 shares of the company’s stock valued at $163,786,000 after buying an additional 12,705 shares during the last quarter. 86.30% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Sentiment lift driven by broader tech/AI momentum and market commentary — Reuters/Yahoo notes Roku rallied after tech heavyweights (e.g., Meta’s Broadcom AI chip news) boosted risk appetite and pushed interest in ad/streaming plays. Why Roku Stock Is Up Today
• Positive Sentiment: Analyst support and upgrades — coverage and price target increases (reported in market writeups) have reinforced a bullish narrative and likely contributed to buying pressure. Trading Up on Analyst Upgrade
• Positive Sentiment: Content and platform wins that improve monetization prospects — Roku launched a new docuseries (Gamechangers) and has added exclusive sports/content deals, which support ad inventory growth and engagement. Gamechangers docuseries
• Positive Sentiment: Product fix: Roku restored offline local TV access via a software update, addressing a recent user frustration and helping platform loyalty/UX. Offline local TV restore
• Neutral Sentiment: Near?term catalyst — Q1 2026 earnings are scheduled for April 30; results and ad?revenue/monetization metrics will be decisive for sustaining the rally. Earnings date
• Neutral Sentiment: Unusual options activity — elevated call buying suggests short?term bullish positioning by traders ahead of catalysts, increasing volatility potential (no direct company fundamental change).
• Negative Sentiment: Zacks downgraded Roku from “strong?buy” to “hold,” which can pressure sentiment among investors who follow that shop. Zacks downgrade
• Negative Sentiment: Insider selling — CEO Anthony Wood sold 50,000 shares under a Rule 10b5?1 plan (SEC filing), and additional insider dispositions were reported this week; while planned, such sales can be perceived negatively by some investors. SEC Form 4
• Negative Sentiment: Workplace lawsuit — a discrimination suit alleging HR dismissed racism complaints introduces legal/PR risk that could distract management and weigh on sentiment. Discrimination suit

Roku Company Profile

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.