Roku (NASDAQ:ROKU) Lowered to “Hold” Rating by Zacks Research

Zacks Research lowered shares of Roku (NASDAQ:ROKU) from a strong-buy rating to a hold rating in a research note issued to investors on Tuesday,Zacks.com reports.

ROKU has been the subject of several other research reports. Rosenblatt Securities upgraded Roku from a “neutral” rating to a “buy” rating and lifted their price target for the company from $106.00 to $118.00 in a report on Friday, February 13th. Robert W. Baird lifted their price target on Roku from $110.00 to $120.00 and gave the company an “outperform” rating in a report on Monday, April 6th. Evercore restated an “outperform” rating and issued a $150.00 price target on shares of Roku in a report on Friday, February 13th. Moffett Nathanson restated a “neutral” rating and issued a $100.00 price target on shares of Roku in a report on Friday, February 13th. Finally, UBS Group restated a “neutral” rating and issued a $110.00 price target on shares of Roku in a report on Friday, February 13th. Twenty-one investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $127.79.

Roku Trading Up 2.6%

Shares of ROKU stock opened at $109.33 on Tuesday. The firm has a 50-day moving average price of $94.51 and a 200 day moving average price of $99.68. Roku has a twelve month low of $57.01 and a twelve month high of $116.66. The company has a market capitalization of $16.12 billion, a price-to-earnings ratio of 191.81 and a beta of 2.00.

Roku (NASDAQ:ROKU) last announced its earnings results on Thursday, February 12th. The company reported $0.53 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.25. Roku had a net margin of 1.87% and a return on equity of 3.40%. The firm had revenue of $1.39 billion during the quarter, compared to the consensus estimate of $1.35 billion. During the same quarter in the previous year, the company posted ($0.24) EPS. The firm’s revenue for the quarter was up 16.1% on a year-over-year basis. As a group, research analysts predict that Roku will post -0.3 earnings per share for the current year.

Insider Transactions at Roku

In other Roku news, insider Gilbert Fuchsberg sold 3,250 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total value of $310,602.50. Following the completion of the transaction, the insider owned 60,456 shares in the company, valued at $5,777,779.92. This represents a 5.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Christopher T. Handman sold 2,999 shares of the company’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $95.57, for a total value of $286,614.43. Following the completion of the transaction, the senior vice president owned 2,999 shares of the company’s stock, valued at approximately $286,614.43. This represents a 50.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 390,944 shares of company stock worth $39,509,185 over the last 90 days. 13.98% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently bought and sold shares of the stock. Blue Trust Inc. boosted its holdings in Roku by 680.0% in the 4th quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after acquiring an additional 204 shares during the period. Aventura Private Wealth LLC purchased a new position in Roku in the 4th quarter worth approximately $26,000. WPG Advisers LLC purchased a new position in Roku in the 4th quarter worth approximately $31,000. Safe Harbor Fiduciary LLC purchased a new position in Roku in the 4th quarter worth approximately $31,000. Finally, Westfuller Advisors LLC purchased a new position in Roku in the 3rd quarter worth approximately $30,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

Roku News Roundup

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.