Roku (NASDAQ:ROKU) Shares Gap Up – Still a Buy?

Roku, Inc. (NASDAQ:ROKU) gapped up before the market opened on Friday . The stock had previously closed at $119.64, but opened at $124.81. Roku shares last traded at $121.1880, with a volume of 511,969 shares trading hands.

Roku News Roundup

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Roku continues to expand its free-content ecosystem, with reports of nearly 80 free channels added in 2026 and four new free channels added for June, which could strengthen engagement and ad inventory. Roku Adds Nearly 80 Free Channels in 2026, Expanding Streaming Options
• Positive Sentiment: Consumer-focused coverage highlighting discounted Roku hardware, including the Roku Streaming Stick 4K and Roku-branded smart TVs, may reinforce brand visibility and device demand. Grab the Roku Streaming Stick 4K with voice remote for under $43
• Positive Sentiment: Roku has continued to outperform the market recently, reflecting improving sentiment around the company’s growth and streaming platform strength. Roku (ROKU) Beats Stock Market Upswing: What Investors Need to Know
• Neutral Sentiment: A report that CEO Anthony Wood sold 18,000 shares under a pre-arranged 10b5-1 plan is worth watching, but the transaction appears routine rather than a sign of negative fundamentals. Roku (NASDAQ:ROKU) CEO Anthony Wood Sells 18,000 Shares
• Neutral Sentiment: Coverage about how to use Apple Music on Roku TV and customize the home screen is largely informational and unlikely to materially affect the stock. Here’s how you can use Apple Music on your Roku TV

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Weiss Ratings reiterated a “hold (c-)” rating on shares of Roku in a research report on Friday, May 15th. Pivotal Research reiterated a “buy” rating and set a $160.00 price target (up from $140.00) on shares of Roku in a research report on Friday, May 1st. Citizens Jmp reiterated a “market outperform” rating and set a $170.00 price target on shares of Roku in a research report on Thursday, May 28th. Oppenheimer increased their price target on shares of Roku from $105.00 to $120.00 and gave the company an “outperform” rating in a research report on Friday, February 13th. Finally, Evercore reiterated an “outperform” rating and set a $185.00 price target on shares of Roku in a research report on Friday. Twenty-two research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Roku currently has a consensus rating of “Moderate Buy” and an average target price of $146.96.

Roku Stock Up 5.0%

The firm has a market cap of $18.52 billion, a P/E ratio of 94.19 and a beta of 2.06. The firm’s fifty day moving average is $117.76 and its two-hundred day moving average is $105.97.

Roku (NASDAQ:ROKU) last released its quarterly earnings results on Thursday, April 30th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.23. The business had revenue of $1.25 billion for the quarter, compared to analysts’ expectations of $1.20 billion. Roku had a net margin of 4.06% and a return on equity of 7.64%. The firm’s revenue for the quarter was up 22.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.19) earnings per share. As a group, sell-side analysts forecast that Roku, Inc. will post 2.41 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Anthony J. Wood sold 18,000 shares of Roku stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $118.55, for a total value of $2,133,900.00. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Gilbert Fuchsberg sold 4,376 shares of Roku stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $127.26, for a total transaction of $556,889.76. Following the completion of the sale, the insider owned 51,099 shares in the company, valued at approximately $6,502,858.74. This trade represents a 7.89% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 685,168 shares of company stock valued at $77,352,473 over the last quarter. 13.45% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roku

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. AQR Capital Management LLC raised its position in shares of Roku by 275.5% in the 3rd quarter. AQR Capital Management LLC now owns 2,586,125 shares of the company’s stock worth $258,897,000 after purchasing an additional 1,897,407 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in shares of Roku by 229.5% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,038,347 shares of the company’s stock worth $192,868,000 after purchasing an additional 1,419,772 shares during the last quarter. Fred Alger Management LLC raised its position in shares of Roku by 7,087.7% in the 4th quarter. Fred Alger Management LLC now owns 1,421,440 shares of the company’s stock worth $154,212,000 after purchasing an additional 1,401,664 shares during the last quarter. Holocene Advisors LP raised its position in shares of Roku by 352.3% in the 3rd quarter. Holocene Advisors LP now owns 1,650,448 shares of the company’s stock worth $165,259,000 after purchasing an additional 1,285,585 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of Roku in the 4th quarter worth about $92,808,000. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.