Roblox (NYSE:RBLX) Stock Gets Price Target Trim from Wedbush

Roblox (NYSE:RBLX) had its price target cut by Wedbush from $55.00 to $52.00 in a research note released on Friday,Benzinga reports. They currently have a neutral rating on the stock.

RBLX has been the topic of several other research reports. Oppenheimer restated an “outperform” rating and set a $50.00 price target (down from $82.00) on shares of Roblox in a research note on Friday, September 11th. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a report on Sunday, October 11th. Raymond James Financial reiterated a “buy” rating on shares of Roblox in a report on Friday, September 11th. Morgan Stanley lowered their price objective on Roblox from $62.00 to $55.00 and set an “overweight” rating on the stock in a research note on Friday, July 31st. Finally, Citigroup decreased their price target on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, Roblox currently has a consensus rating of “Hold” and an average price target of $53.46.

Roblox Stock Up 0.0%

Shares of NYSE:RBLX opened at $43.01 on Friday. The stock has a fifty day simple moving average of $46.34 and a two-hundred day simple moving average of $52.69. The stock has a market capitalization of $28.87 billion, a price-to-earnings ratio of -31.17 and a beta of 1.45. Roblox has a 12-month low of $33.88 and a 12-month high of $119.85. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82.

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

Insider Buying and Selling

In other news, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $42.87, for a total transaction of $714,471.42. Following the transaction, the director directly owned 1,252,836 shares in the company, valued at $53,709,079.32. This represents a 1.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Naveen Chopra sold 17,509 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 $664,641.64. Following the sale, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. This trade represents a 4.60% 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 have sold 186,390 shares of company stock worth $7,283,371 over the last ninety days. Insiders own 10.05% of the company’s stock.

Institutional Trading of Roblox

A number of hedge funds have recently made changes to their positions in the stock. Basecamp Wealth Advisors LLC lifted its position in shares of Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after buying an additional 252 shares during the last quarter. Root Financial Partners LLC grew its holdings in shares of Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after purchasing an additional 283 shares in the last quarter. Activest Wealth Management raised its position in Roblox by 72.9% in the third quarter. Activest Wealth Management now owns 588 shares of the company’s stock worth $25,000 after purchasing an additional 248 shares in the last quarter. Western Wealth Management LLC bought a new stake in Roblox in the first quarter valued at $33,000. Finally, Atlantic Private Wealth LLC bought a new stake in Roblox during the first quarter worth about $35,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox News Summary

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

Roblox Company Profile

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.