Roku (NASDAQ:ROKU) Trading Down 3.6% – What’s Next?

Shares of Roku, Inc. (NASDAQ:ROKU) dropped 3.6% during mid-day trading on Wednesday . The stock traded as low as $100.66 and last traded at $100.84. Approximately 2,379,017 shares changed hands during trading, a decline of 16% from the average daily volume of 2,834,167 shares. The stock had previously closed at $104.58.

Key Headlines Impacting Roku

Here are the key news stories impacting Roku this week:

• Positive Sentiment: Zacks notes a hammer candlestick pattern and improving earnings-estimate revisions for ROKU, signalling the stock may have found near-term support and could be set up for a rebound if revisions continue. Here’s Why Roku (ROKU) Could be Great Choice for a Bottom Fisher
• Positive Sentiment: Another Zacks piece highlights Wall Street optimism and analyst interest in ROKU, which can support the stock if sentiment turns into upgrades or higher price targets. Wall Street Bulls Look Optimistic About Roku (ROKU): Should You Buy?
• Neutral Sentiment: Roku scheduled Q4 2025 results for Feb. 12 (after the close) with a webcast — an upcoming catalyst that often increases volatility as investors reposition. Roku to Announce Fourth Quarter 2025 Financial Results on Feb. 12, 2026
• Neutral Sentiment: Multiple consumer-tech stories (Lifehacker, MSN, Pocket-lint, Gizmodo) are highlighting new Roku UI features, user “hacks,” and ecosystem product promotions — positive for user engagement and brand visibility but likely modest near-term impact on shares. 12 Hacks Every Roku User Should Know Roku just quietly added a cheat code for finding something good to watch fast
• Negative Sentiment: Fundamentally Roku still posts negative margins and an expected full-year loss (consensus EPS remains negative), and the stock sits below the 50‑day moving average and around the 200‑day level — technical resistance combined with profit-taking ahead of earnings likely pressured the share price today.

Analyst Ratings Changes

Several research analysts have recently issued reports on ROKU shares. Wedbush lifted their price target on Roku from $115.00 to $130.00 and gave the stock an “outperform” rating in a research note on Thursday, December 11th. Jefferies Financial Group raised Roku from a “hold” rating to a “buy” rating and upped their target price for the company from $100.00 to $135.00 in a research note on Thursday, December 11th. KeyCorp reissued an “overweight” rating and set a $116.00 price target on shares of Roku in a research report on Tuesday, October 28th. Guggenheim increased their price objective on Roku from $110.00 to $115.00 and gave the company a “buy” rating in a research note on Thursday, December 4th. Finally, Citigroup reissued an “outperform” rating on shares of Roku in a research note on Friday, January 9th. Twenty-two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $118.79.

Roku Stock Down 5.2%

The stock has a market capitalization of $14.07 billion, a PE ratio of -475.98 and a beta of 1.95. The business’s fifty day moving average is $105.24 and its 200-day moving average is $98.97.

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

Insider Activity at Roku

In related news, CEO Anthony J. Wood sold 75,000 shares of the company’s stock in a transaction on Monday, January 12th. The shares were sold at an average price of $109.61, for a total transaction of $8,220,750.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Gilbert Fuchsberg sold 3,250 shares of the firm’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $108.78, for a total value of $353,535.00. Following the completion of the transaction, the insider directly owned 59,094 shares in the company, valued at $6,428,245.32. This trade represents a 5.21% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 250,194 shares of company stock valued at $26,511,472 over the last quarter. Company insiders own 13.98% of the company’s stock.

Institutional Trading of Roku

Hedge funds have recently made changes to their positions in the company. West Tower Group LLC boosted its stake in shares of Roku by 128.6% during the 2nd quarter. West Tower Group LLC now owns 8,000 shares of the company’s stock valued at $703,000 after buying an additional 4,500 shares during the last quarter. CWM LLC boosted its stake in Roku by 345.4% during the 3rd quarter. CWM LLC now owns 84,010 shares of the company’s stock valued at $8,412,000 after acquiring an additional 65,150 shares during the last quarter. Accurate Wealth Management LLC bought a new position in Roku during the 3rd quarter valued at $1,115,000. Highland Capital Management LLC grew its holdings in Roku by 153.2% during the 2nd quarter. Highland Capital Management LLC now owns 65,770 shares of the company’s stock worth $5,781,000 after acquiring an additional 39,797 shares in the last quarter. Finally, Monetta Financial Services Inc. increased its position in shares of Roku by 50.0% in the 2nd quarter. Monetta Financial Services Inc. now owns 15,000 shares of the company’s stock worth $1,318,000 after purchasing an additional 5,000 shares during the last quarter. Hedge funds and other institutional investors own 86.30% of the company’s stock.

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.