Roku (NASDAQ:ROKU) Price Target Raised to $140.00 at Needham & Company LLC

Roku (NASDAQ:ROKU) had its target price upped by Needham & Company LLC from $110.00 to $140.00 in a report issued on Friday morning, Marketbeat Ratings reports. Needham & Company LLC currently has a buy rating on the stock.

Several other research firms also recently issued reports on ROKU. Stifel Nicolaus set a $160.00 price target on Roku in a research note on Monday, March 2nd. Guggenheim raised their price objective on Roku from $130.00 to $140.00 and gave the company a “buy” rating in a report on Friday. Pivotal Research restated a “buy” rating and issued a $160.00 price objective (up from $140.00) on shares of Roku in a report on Friday. UBS Group restated a “neutral” rating and issued a $110.00 price objective on shares of Roku in a report on Friday, February 13th. Finally, Arete Research set a $132.00 price objective on Roku and gave the company a “buy” rating in a report on Monday, January 5th. Twenty-two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $141.33.

Roku Price Performance

Shares of ROKU traded up $7.02 during midday trading on Friday, hitting $123.58. The stock had a trading volume of 8,095,098 shares, compared to its average volume of 2,456,279. The company has a 50 day simple moving average of $100.40 and a two-hundred day simple moving average of $100.78. Roku has a twelve month low of $58.55 and a twelve month high of $127.00. The firm has a market cap of $18.22 billion, a price-to-earnings ratio of 216.81 and a beta of 2.00.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.23. Roku had a return on equity of 7.68% and a net margin of 4.06%.The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.20 billion. During the same quarter last year, the business posted ($0.19) EPS. The company’s revenue for the quarter was up 22.4% on a year-over-year basis. Analysts forecast that Roku will post 2.1 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 50,000 shares of Roku stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $90.79, for a total transaction of $4,539,500.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Charles Collier sold 205,821 shares of Roku stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $105.00, for a total value of $21,611,205.00. Following the transaction, the insider owned 11,131 shares of the company’s stock, valued at $1,168,755. The trade was a 94.87% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 632,182 shares of company stock worth $67,058,733. Company insiders own 13.98% of the company’s stock.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently bought and sold shares of ROKU. Blue Trust Inc. grew its holdings in Roku by 680.0% during the fourth quarter. Blue Trust Inc. now owns 234 shares of the company’s stock worth $25,000 after purchasing an additional 204 shares during the period. Aventura Private Wealth LLC bought a new stake in shares of Roku during the fourth quarter worth approximately $26,000. Bayban boosted its holdings in shares of Roku by 1,300.0% during the first quarter. Bayban now owns 280 shares of the company’s stock worth $26,000 after acquiring an additional 260 shares during the period. Westfuller Advisors LLC bought a new stake in shares of Roku during the third quarter worth approximately $30,000. Finally, WPG Advisers LLC bought a new stake in shares of Roku during the fourth quarter worth approximately $31,000. Institutional investors own 86.30% of the company’s stock.

Key Stories Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku reported better?than?expected Q1 results: adjusted EPS $0.57 vs. ~$0.33–$0.34 consensus and revenue of ~$1.25B (up ~22% YoY), signaling a return to profitability. Article Title
• Positive Sentiment: Advertising and subscription monetization accelerated — ad revenue jumped ~27% YoY (roughly $612–616M) and subscriptions grew strongly, boosting platform profitability and gross margin contribution. Article Title
• Positive Sentiment: Roku raised its annual platform revenue forecast (management showed confidence in continued ad spend), which analysts viewed as a meaningful guidance tightening. Article Title
• Positive Sentiment: Wall Street quickly reacted with upgrades and price?target increases (multiple firms raised targets into the $140–$170 range), amplifying buying interest. Example coverage of the analyst lift is here. Article Title
• Neutral Sentiment: Roku provided updated FY/Q2 revenue guidance (platform revenue outlook raised), but management’s EPS guidance language was uneven in releases — investors are focused on platform revenue growth more than near?term EPS clarity. Article Title
• Negative Sentiment: Hardware/devices remain a drag on margins and growth (devices are lower?margin and not yet turning the corner), a headwind investors will watch as platform monetization scales. Article Title
• Negative Sentiment: Valuation risk: ROKU still trades at a high P/E relative to mature media peers, so the stock is sensitive to execution slips or a slowdown in advertising growth. (Background valuation context drives some caution among investors.)

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.