Citigroup Cuts Roblox (NYSE:RBLX) Price Target to $60.00

Roblox (NYSE:RBLX) had its target price reduced by Citigroup from $70.00 to $60.00 in a research report released on Monday morning,Benzinga reports. They currently have a buy rating on the stock.

Several other research analysts have also recently weighed in on RBLX. Oppenheimer cut their price objective on Roblox from $82.00 to $50.00 and set an “outperform” rating on the stock in a research report on Friday, July 31st. Cantor Fitzgerald began coverage on shares of Roblox in a report on Monday, June 29th. They issued an “overweight” rating on the stock. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Roblox in a research report on Wednesday, June 24th. Morgan Stanley reduced their target price on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research report on Friday, July 31st. Finally, Barclays lowered their price target on shares of Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $60.89.

Roblox Stock Performance

Shares of RBLX stock opened at $36.17 on Monday. Roblox has a one year low of $33.88 and a one year high of $142.00. The company has a market cap of $24.23 billion, a P/E ratio of -25.29 and a beta of 1.46. The firm has a 50-day moving average of $48.68 and a 200-day moving average of $55.79. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the firm posted ($0.41) EPS. The firm’s quarterly revenue was up 8.3% compared to the same quarter last year. Equities research analysts forecast that Roblox will post -1.38 EPS for the current fiscal year.

Roblox declared that its board has approved a stock buyback program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to purchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other Roblox news, CEO David Baszucki sold 50,628 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the sale, the chief executive officer owned 852,214 shares of the company’s stock, valued at $38,588,249.92. The trade was a 5.61% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider owned 349,964 shares in the company, valued at approximately $15,842,870.28. This represents a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 161,983 shares of company stock worth $7,455,828 in the last three months. Insiders own 10.05% of the company’s stock.

Institutional Trading of Roblox

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in Roblox by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company’s stock worth $5,142,065,000 after purchasing an additional 1,020,786 shares during the period. Capital International Investors increased its position in shares of Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after buying an additional 2,184,439 shares during the period. Morgan Stanley lifted its holdings in shares of Roblox by 8.1% in the fourth quarter. Morgan Stanley now owns 20,728,914 shares of the company’s stock worth $1,679,664,000 after buying an additional 1,555,549 shares in the last quarter. State Street Corp lifted its holdings in shares of Roblox by 3.3% in the fourth quarter. State Street Corp now owns 13,812,362 shares of the company’s stock worth $1,119,216,000 after buying an additional 442,518 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Roblox by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company’s stock valued at $988,002,000 after acquiring an additional 547,103 shares during the period. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Despite the post-earnings decline, some analysts see substantial long-term upside, citing Roblox’s growing user base and the possibility that current pessimism already reflects much of the near-term risk. Roblox: Visibility Has Collapsed And That Is Exactly Why I Am Buying
• Positive Sentiment: Roblox beat quarterly EPS expectations, although revenue fell short of consensus; this provides a limited positive offset to concerns about the company’s outlook.
• Neutral Sentiment: Director Gregory Baszucki sold 16,666 shares for approximately $624,000 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced his direct holdings by 1.3%, but the planned nature of the sale and his remaining substantial ownership reduce its significance as a bearish signal. SEC Form 4 filing
• Neutral Sentiment: Market commentary remains divided: some investors view the selloff as a buying opportunity, while others question whether the company’s growth and monetization can reaccelerate.
• Negative Sentiment: Citigroup and B. Riley Financial lowered their expectations for Roblox’s stock, adding pressure after the earnings-related selloff. Citigroup forecast B. Riley forecast
• Negative Sentiment: Analysts and financial media highlighted troubling signals in Roblox’s post-earnings outlook, including reduced visibility and concerns that revenue growth is not keeping pace with expectations. Deutsche Bank downgrade coverage
• Negative Sentiment: Several law firms are promoting securities class-action claims tied to Roblox’s October 2024–April 2026 trading period, with an August 7 lead-plaintiff deadline. The notices increase headline and potential legal-risk concerns, although they do not establish wrongdoing. Faruqi class-action deadline notice

About Roblox

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.