Roblox’s (RBLX) “Neutral” Rating Reiterated at Wedbush

Roblox (NYSE:RBLX)‘s stock had its “neutral” rating restated by analysts at Wedbush in a note issued to investors on Friday, MarketBeat reports. They presently have a $40.00 target price on the stock, down from their previous target price of $65.00. Wedbush’s price objective points to a potential downside of 17.75% from the company’s previous close.

A number of other brokerages have also recently weighed in on RBLX. Morgan Stanley reiterated an “overweight” rating and set a $62.00 price target on shares of Roblox in a research report on Friday, May 1st. Citigroup reiterated a “buy” rating on shares of Roblox in a research note on Wednesday, July 15th. Barclays reissued a “negative” rating on shares of Roblox in a report on Friday. TD Cowen raised shares of Roblox from a “sell” rating to a “hold” rating and dropped their price objective for the stock from $54.00 to $49.00 in a report on Friday, May 1st. Finally, Arete Research set a $95.00 price objective on shares of Roblox and gave the company a “buy” rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, twelve have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Roblox has a consensus rating of “Hold” and a consensus target price of $67.63.

Roblox Trading Down 3.0%

NYSE RBLX opened at $48.63 on Friday. Roblox has a one year low of $40.15 and a one year high of $150.59. The company has a 50-day simple moving average of $49.53 and a 200-day simple moving average of $57.08. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89. The firm has a market capitalization of $32.66 billion, a PE ratio of -30.78 and a beta of 1.41.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.08. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the prior year, the business earned ($0.41) earnings per share. Roblox’s quarterly revenue was up 8.3% on a year-over-year basis. On average, equities analysts forecast that Roblox will post -1.39 earnings per share for the current year.

Roblox announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other Roblox news, insider Mark Reinstra sold 17,275 shares of the business’s stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $782,212.00. Following the sale, the insider directly owned 438,198 shares in the company, valued at approximately $19,841,605.44. The trade was a 3.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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. Also, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $44.97, for a total transaction of $749,470.02. Following the completion of the sale, the director directly owned 1,294,501 shares of the company’s stock, valued at approximately $58,213,709.97. This represents a 1.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 161,983 shares of company stock worth $7,580,990 in the last 90 days. 10.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Large investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC boosted its stake in shares of Roblox by 379.8% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock worth $53,102,000 after acquiring an additional 729,379 shares in the last quarter. Glynn Capital Management LLC purchased a new stake in shares of Roblox during the fourth quarter valued at $5,706,000. Militia Capital Management LLC acquired a new position in shares of Roblox in the 1st quarter valued at $2,590,000. Engineers Gate Manager LP raised its holdings in Roblox by 97.0% during the 4th quarter. Engineers Gate Manager LP now owns 293,744 shares of the company’s stock worth $23,802,000 after buying an additional 144,600 shares during the period. Finally, Spyglass Capital Management LLC acquired a new stake in Roblox during the 1st quarter worth about $44,116,000. Institutional investors own 94.46% of the company’s stock.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported a second-quarter adjusted loss of $0.26 per share, narrower than the approximately $0.33–$0.34 loss analysts expected. The loss also improved from $0.41 per share a year earlier. Roblox Q2 earnings report
• Positive Sentiment: Revenue rose 8.3% year over year to $1.47 billion, while daily active users increased 10% year over year, indicating continued platform expansion despite decelerating growth. Roblox daily active users growth
• Neutral Sentiment: The European Commission said Roblox could potentially be classified as a very large online platform under the Digital Services Act, which may increase regulatory scrutiny and compliance requirements. Roblox and EU Digital Services Act
• Negative Sentiment: Roblox forecast third-quarter bookings of $1.58 billion to $1.65 billion, below Wall Street expectations. Management also projected revenue growth of only 4% to 10%, suggesting a sharp slowdown as platform changes affect discovery, onboarding, and monetization. Roblox quarterly bookings outlook
• Negative Sentiment: Stricter age-verification and safety measures are reportedly weighing on user onboarding and engagement, while Roblox missed analyst expectations on key user metrics. These factors raise concerns about near-term bookings and advertising or virtual-goods monetization. Roblox safety changes and bookings forecast
• Negative Sentiment: Analysts cut forecasts and price targets following the disappointing outlook, reinforcing investor concerns that Roblox’s growth reset may persist beyond the current quarter. Analyst forecast cuts for Roblox
• Negative Sentiment: Several law firms publicized securities-fraud class-action claims concerning Roblox, including allegations related to disclosures about age verification and its business impact. Although the announcements do not establish liability, they add reputational and potential legal risk. Roblox securities class action alert

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.