Roblox (NYSE:RBLX) Stock Rating Cut to Sell at Wall Street Zen

Wall Street Zen lowered shares of Roblox (NYSE:RBLX) from a hold rating to a sell rating in a research report released on Saturday morning,Wall Street Zen reports.

A number of other research analysts also recently commented on RBLX. Seaport Research Partners downgraded shares of Roblox to a “neutral” rating in a research report on Monday, June 29th. Moffett Nathanson restated a “neutral” rating and issued a $40.00 price objective on shares of Roblox in a research note on Monday, August 3rd. Wells Fargo & Company raised their price objective on Roblox from $46.00 to $64.00 and gave the stock an “overweight” rating in a report on Monday, September 14th. B. Riley Financial cut their target price on Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. Finally, Cantor Fitzgerald assumed coverage on Roblox in a report on Monday, June 29th. They issued an “overweight” rating for the company. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, thirteen have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, Roblox currently has a consensus rating of “Hold” and an average price target of $60.79.

Roblox Price Performance

RBLX stock opened at $44.12 on Friday. The business has a 50 day moving average price of $42.34 and a 200 day moving average price of $48.35. The stock has a market cap of $29.56 billion, a price-to-earnings ratio of -30.85 and a beta of 1.47. Roblox has a fifty-two week low of $33.88 and a fifty-two week high of $141.95. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The firm’s revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.41) earnings per share. Equities research analysts anticipate that Roblox will post -1.39 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In other Roblox news, CFO Naveen Chopra sold 17,509 shares of the business’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $664,641.64. Following the transaction, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. The trade was a 4.60% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 52,568 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the transaction, the chief executive officer owned 799,646 shares of the company’s stock, valued at approximately $30,354,562.16. The trade was a 6.17% 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 a total of 185,236 shares of company stock worth $7,291,652 over the last quarter. 10.05% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. SkyView Investment Advisors LLC purchased a new stake in Roblox in the 2nd quarter valued at approximately $245,000. National Pension Service increased its position in Roblox by 34.0% during the 2nd quarter. National Pension Service now owns 1,243,524 shares of the company’s stock worth $67,623,000 after purchasing an additional 315,244 shares during the period. NorthRock Partners LLC raised its stake in shares of Roblox by 13.7% during the 2nd quarter. NorthRock Partners LLC now owns 30,413 shares of the company’s stock worth $1,654,000 after buying an additional 3,660 shares in the last quarter. NewEdge Advisors LLC raised its stake in shares of Roblox by 18.6% during the 2nd quarter. NewEdge Advisors LLC now owns 16,977 shares of the company’s stock worth $923,000 after buying an additional 2,662 shares in the last quarter. Finally, IFP Advisors Inc lifted its holdings in shares of Roblox by 25.5% in the 2nd quarter. IFP Advisors Inc now owns 33,527 shares of the company’s stock valued at $1,823,000 after buying an additional 6,808 shares during the period. 94.46% of the stock is owned by hedge funds and other institutional investors.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox is reportedly still adding users and generating revenue, suggesting that the platform’s underlying engagement and business model remain intact. The sharp selloff may therefore reflect reduced expectations and valuation compression rather than a collapse in demand. Roblox Has Lost Two Thirds of Its Value
• Positive Sentiment: Wall Street’s average price target is $60.79, well above the reported $44.12 trading level, indicating potential upside if Roblox can stabilize growth and improve profitability. However, the consensus rating is only “Hold.” Roblox Average Price Target
• Neutral Sentiment: Analysts remain broadly cautious, with a mix of buy, hold and sell ratings. Jefferies reportedly viewed Roblox’s recent rally as overly optimistic, while another analyst group is neutral on the stock. Jefferies on Roblox’s Rally
• Negative Sentiment: Wall Street Zen downgraded Roblox to “Sell,” adding to concerns about the company’s outlook and valuation. Roblox remains unprofitable, with analysts expecting a full-year loss, while its latest revenue of $1.47 billion trailed estimates of $1.60 billion despite 8.3% year-over-year growth. Wall Street Zen Downgrades Roblox
• Negative Sentiment: Director Gregory Baszucki sold 16,666 shares worth approximately $714,000 under a pre-arranged Rule 10b5-1 plan. The planned nature of the sale reduces its signaling value, but repeated insider selling can still weigh on sentiment. Roblox Director Stock Sale

About Roblox

Roblox Corporation (NYSE:RBLX) operates an online entertainment platform where users can create, share and experience interactive 3D content. The platform hosts user-generated games and other virtual experiences across genres, including entertainment, social activities, education and simulated environments.

Roblox provides development tools through Roblox Studio, enabling creators to build and publish experiences, digital items and other content. Users can customize avatars, interact with others and access the platform across supported computers, mobile devices, gaming consoles and virtual reality systems.