Roku (NASDAQ:ROKU) Trading Down 2.1% on Analyst Downgrade

Roku, Inc. (NASDAQ:ROKU) shares dropped 2.1% during mid-day trading on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $108.25 and last traded at $108.49. Approximately 1,678,586 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 3,681,789 shares. The stock had previously closed at $110.82.

ROKU has been the topic of a number of other research reports. JPMorgan Chase & Co. boosted their target price on shares of Roku from $115.00 to $125.00 and gave the company an “overweight” rating in a research report on Friday, December 12th. Guggenheim upped their price objective on shares of Roku from $110.00 to $115.00 and gave the company a “buy” rating in a report on Thursday, December 4th. Jefferies Financial Group raised shares of Roku from a “hold” rating to a “buy” rating and increased their price objective for the stock from $100.00 to $135.00 in a research report on Thursday, December 11th. Citizens Jmp reaffirmed a “market outperform” rating and issued a $145.00 target price on shares of Roku in a research report on Tuesday, December 2nd. Finally, Needham & Company LLC reaffirmed a “buy” rating and set a $110.00 price target on shares of Roku in a research note on Wednesday, October 1st. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $116.91.

Insider Buying and Selling at Roku

In other Roku news, CEO Anthony J. Wood sold 25,000 shares of the firm’s stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $110.32, for a total transaction of $2,758,000.00. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CFO Dan Jedda sold 3,000 shares of the stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $107.44, for a total transaction of $322,320.00. Following the completion of the sale, the chief financial officer owned 90,267 shares of the company’s stock, valued at approximately $9,698,286.48. This represents a 3.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 355,957 shares of company stock valued at $37,980,076 in the last three months. Insiders own 13.98% of the company’s stock.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: New live/theatrical content arriving on Roku City (Wicked: For Good) strengthens Roku’s content slate and engagement potential, which can support ad and platform revenue growth. New ‘Wicked: For Good’ Performances Arrive on Roku City Platform – Here’s How to Watch
• Positive Sentiment: Roku’s Backdrops mode (turning TVs into an art display) improves product differentiation and time-on-device opportunities, which supports ecosystem monetization. Roku’s backdrops mode can make your TV an art display
• Positive Sentiment: Deep discounts on hardware (Roku Streaming Stick Plus 4K under $30) can drive near-term unit sales and expand the user base, supporting longer-term ad and platform revenue. Grab a Roku Streaming Stick Plus 4K for under $30
• Positive Sentiment: Industry coverage (Zacks) highlights a content-driven “supercycle” benefiting platform players like Roku, which supports a constructive long-term narrative around ad/owned-IP monetization. Must-Watch Streaming Stocks Set to Ride on the Content Supercycle
• Neutral Sentiment: Practical guide on using a Roku without internet—useful consumer info but unlikely to move fundamentals materially. Yes, you can use a Roku without internet – but there’s a catch
• Neutral Sentiment: Zacks published a take on whether Roku is worth betting on—useful for investor interest but balanced and not an outright buy/sell catalyst. Is Most-Watched Stock Roku, Inc. (ROKU) Worth Betting on Now?
• Negative Sentiment: Zacks Research downgraded Roku from “strong‑buy” to “hold” — a near-term negative catalyst that likely contributed to today’s sell-off by reducing buy-side conviction. Zacks.com downgrade note
• Negative Sentiment: Retail clearance: Amazon appears to be offloading Roku Smart TVs at steep, all‑time‑low prices — this can boost unit volumes but signals channel discounting that may pressure ASPs and margins. Amazon Offloads the Roku Smart TV at an All-Time Low

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROKU. Westfuller Advisors LLC bought a new position in shares of Roku during the 3rd quarter valued at approximately $30,000. Root Financial Partners LLC purchased a new position in Roku in the third quarter valued at approximately $33,000. Cornerstone Planning Group LLC grew its holdings in Roku by 20,450.0% during the third quarter. Cornerstone Planning Group LLC now owns 411 shares of the company’s stock valued at $41,000 after purchasing an additional 409 shares during the period. Banque Transatlantique SA purchased a new stake in Roku in the first quarter worth $28,000. Finally, Rakuten Securities Inc. increased its position in Roku by 55.6% in the second quarter. Rakuten Securities Inc. now owns 442 shares of the company’s stock worth $39,000 after buying an additional 158 shares during the last quarter. 86.30% of the stock is currently owned by hedge funds and other institutional investors.

Roku Price Performance

The company has a 50 day simple moving average of $102.78 and a 200-day simple moving average of $95.93. The stock has a market capitalization of $16.03 billion, a P/E ratio of -542.42 and a beta of 1.95.

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

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.