Roblox (NYSE:RBLX) Stock Lifted to “Strong-Buy” by Wolfe Research

Roblox (NYSE:RBLX) was upgraded by analysts at Wolfe Research from a “hold” rating to a “strong-buy” rating in a report released on Friday, Zacks reports.

Other research analysts have also recently issued research reports about the company. UBS Group set a $50.00 price target on Roblox in a research note on Friday. JPMorgan Chase & Co. increased their price objective on Roblox from $40.00 to $53.00 and gave the company a “neutral” rating in a research report on Wednesday, October 14th. Bank of America lifted their price objective on Roblox from $44.00 to $48.00 and gave the stock a “neutral” rating in a report on Monday, September 14th. Moffett Nathanson reissued a “neutral” rating and issued a $40.00 target price (down from $88.00) on shares of Roblox in a research report on Monday, August 3rd. Finally, B. Riley Financial lowered their target price on shares of Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have given a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Roblox currently has a consensus rating of “Hold” and a consensus target price of $53.46.

Roblox Price Performance

Shares of RBLX opened at $43.01 on Friday. The company has a market capitalization of $28.82 billion, a P/E ratio of -31.17 and a beta of 1.47. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm has a 50 day moving average of $46.34 and a 200 day moving average of $52.69. Roblox has a twelve month low of $33.88 and a twelve month high of $119.85.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, October 29th. The company reported ($0.32) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.43) by $0.11. The business had revenue of $1.57 billion for the quarter, compared to analysts’ expectations of $1.63 billion. Roblox had a negative return on equity of 303.93% and a negative net margin of 16.48%. The firm’s quarterly revenue was up 15.6% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.37) EPS. As a group, equities research analysts anticipate that Roblox will post -1.41 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Mark Reinstra sold 5,666 shares of the company’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $44.20, for a total transaction of $250,437.20. Following the completion of the sale, the insider owned 386,625 shares of the company’s stock, valued at $17,088,825. This represents a 1.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 shares of the stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 799,646 shares in the company, valued at $30,354,562.16. This trade represents a 6.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 186,390 shares of company stock worth $7,283,371. Company insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Rakuten Investment Management Inc. raised its stake in Roblox by 14.7% during the 3rd quarter. Rakuten Investment Management Inc. now owns 39,300 shares of the company’s stock valued at $1,618,000 after purchasing an additional 5,037 shares during the period. Provenance Wealth Advisors LLC purchased a new position in Roblox in the 3rd quarter worth approximately $149,000. Gerber Kawasaki Wealth & Investment Management purchased a new position in Roblox in the 3rd quarter worth approximately $366,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in Roblox in the 3rd quarter worth approximately $63,000. Finally, Americana Partners LLC bought a new position in Roblox in the 3rd quarter worth approximately $262,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported a third-quarter loss of $0.32 per share, better than the $0.43 consensus estimate. Revenue increased 15.6% year over year to approximately $1.57 billion, while bookings also reportedly exceeded expectations. Roblox quarterly earnings report
• Positive Sentiment: Gross profit rose substantially year over year and the company generated $395 million in operating cash flow, although cash flow was below the prior-year period. These figures provide some support for the company’s longer-term financial position. Roblox third-quarter financial data
• Neutral Sentiment: Wedbush lowered its Roblox price target from $55 to $52 and changed its rating to “neutral.” The new target remains above the stock’s reference price, but the reduction signals less confidence in the pace of recovery. Wedbush Roblox price-target update
• Negative Sentiment: Average daily active users fell 9% year over year to 138 million, while engagement hours declined 15% to 34 billion. This was Roblox’s first reported year-over-year decline in daily users and raised concerns about slowing user engagement. Roblox user and engagement metrics
• Negative Sentiment: Soft fourth-quarter bookings guidance overshadowed the earnings beat, suggesting weaker holiday-period spending. Investors are also concerned that the expected release and popularity of GTA VI could compete for players’ time and gaming budgets. Roblox outlook and GTA VI article
• Negative Sentiment: Roblox remains unprofitable, reporting a net loss of approximately $227 million, while revenue came in below analyst expectations. The combination of declining engagement, continued losses and cautious guidance is driving the current selloff. Roblox earnings selloff analysis

About Roblox

Roblox Corporation operates Roblox, an online platform where users can create, publish, and participate in interactive digital experiences. The platform supports a broad range of user-generated content, including games, social spaces, entertainment, educational activities, and virtual events.

Roblox provides development tools through Roblox Studio, enabling creators and developers to design experiences and build virtual items and environments. Users can customize avatars, communicate with others, and access content across computers, mobile devices, consoles, and other supported platforms.