Roku (NASDAQ:ROKU) Stock Price Up 6% Following Strong Earnings

Shares of Roku, Inc. (NASDAQ:ROKU) were up 6% on Friday following a stronger than expected earnings report. The stock traded as high as $127.00 and last traded at $123.58. Approximately 8,079,972 shares traded hands during trading, an increase of 144% from the average daily volume of 3,312,816 shares. The stock had previously closed at $116.56.

The company reported $0.57 earnings per share for the quarter, beating analysts’ consensus estimates of $0.34 by $0.23. Roku had a net margin of 1.87% and a return on equity of 3.40%. The business had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.20 billion. During the same quarter in the previous year, the business posted ($0.19) earnings per share. The business’s revenue was up 22.4% compared to the same quarter last year.

Key Roku News

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku beat Q1 earnings and revenue estimates—adjusted EPS $0.57 vs. consensus ~ $0.33–$0.34 and revenue $1.25B vs. ~$1.20B—showing a sharp swing to profitability and 22% Y/Y revenue growth. Read More.
• Positive Sentiment: Advertising and subscription segments accelerated: ad revenue rose ~27% to about $612–616M and subs were up ~24%, making platform revenue the primary profit driver. Management raised its annual platform revenue outlook, signaling confidence in ad spend. Read More.
• Positive Sentiment: Multiple sell?side firms lifted ratings and price targets (range now roughly $140–$170), reflecting renewed conviction in Roku’s role as a CTV gatekeeper; that analyst momentum is supporting the rally. Read More.
• Neutral Sentiment: Wall Street consensus is broadly bullish (average broker recommendation ~Buy), but some commentary warns analyst sentiment can be optimistic—worth noting for investors watching momentum vs. fundamentals. Read More.
• Negative Sentiment: The hardware/devices business remains a drag on margins and overall profitability despite platform strength; devices still weigh on consolidated results and could limit margin upside. Read More.
• Negative Sentiment: Valuation and volatility risks: ROKU trades at a high multiple and has a beta ~2.0, so upside from improved fundamentals is paired with elevated valuation/market sensitivity—manage position sizing accordingly.

Analysts Set New Price Targets

ROKU has been the topic of a number of recent analyst reports. Bank of America increased their price objective on shares of Roku from $115.00 to $140.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. Piper Sandler boosted their target price on Roku from $140.00 to $148.00 and gave the company an “overweight” rating in a research report on Friday. Jefferies Financial Group upped their target price on Roku from $135.00 to $140.00 and gave the company a “buy” rating in a research note on Monday, April 13th. Oppenheimer increased their price target on Roku from $105.00 to $120.00 and gave the stock an “outperform” rating in a report on Friday, February 13th. Finally, Evercore reissued an “outperform” rating and set a $150.00 price target on shares of Roku in a research note on Friday, February 13th. Twenty-two analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $141.33.

Insider Activity at Roku

In other news, CEO Anthony J. Wood sold 50,000 shares of the firm’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $90.79, for a total transaction of $4,539,500.00. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $95.57, for a total value of $310,602.50. Following the completion of the sale, the insider owned 60,456 shares of the company’s stock, valued at $5,777,779.92. The trade was a 5.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 632,182 shares of company stock valued at $67,058,733 over the last 90 days. 13.98% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roku

A number of hedge funds and other institutional investors have recently made changes to their positions in ROKU. Blue Trust Inc. lifted its stake in Roku by 680.0% in the fourth 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 during the 4th quarter valued at about $26,000. Bayban increased its position in Roku by 1,300.0% during the 1st quarter. Bayban now owns 280 shares of the company’s stock valued at $26,000 after purchasing an additional 260 shares during the period. Westfuller Advisors LLC bought a new stake in shares of Roku in the 3rd quarter valued at about $30,000. Finally, WPG Advisers LLC bought a new stake in shares of Roku in the 4th quarter valued at about $31,000. Institutional investors own 86.30% of the company’s stock.

Roku Trading Up 6.0%

The firm’s 50-day moving average price is $100.40 and its two-hundred day moving average price is $100.78. The stock has a market cap of $18.22 billion, a PE ratio of 216.81 and a beta of 2.00.

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.