Roblox (NYSE:RBLX) Upgraded to “Hold” at Wall Street Zen

Wall Street Zen upgraded shares of Roblox (NYSE:RBLX) from a sell rating to a hold rating in a research report sent to investors on Sunday morning,Wall Street Zen reports.

Several other analysts have also commented on RBLX. Needham & Company LLC increased their target price on shares of Roblox from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, September 23rd. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Monday, September 21st. Wedbush lifted their price target on shares of Roblox from $40.00 to $48.00 and gave the stock a “neutral” rating in a research report on Monday, September 14th. B. Riley Financial dropped their price target on Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, August 3rd. Finally, DA Davidson set a $40.00 price target on Roblox in a report on Friday, July 31st. One research 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’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $60.79.

Roblox Price Performance

Shares of Roblox stock opened at $48.09 on Friday. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. The company’s 50-day moving average price is $42.30 and its two-hundred day moving average price is $47.87. Roblox has a 52 week low of $33.88 and a 52 week high of $141.95. The stock has a market cap of $32.22 billion, a PE ratio of -33.63 and a beta of 1.47.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, beating the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion during 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 business’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter last year, the firm posted ($0.41) EPS. As a group, sell-side analysts anticipate that Roblox will post -1.39 EPS for the current fiscal year.

Insider Activity at Roblox

In other news, CFO Naveen Chopra sold 17,509 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $664,641.64. Following the completion of the sale, the chief financial officer owned 363,249 shares of the company’s stock, valued at $13,788,932.04. This trade represents a 4.60% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Buckley sold 4,321 shares of the firm’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $38.68, for a total value of $167,136.28. Following the completion of the sale, the insider directly owned 87,213 shares of the company’s stock, valued at approximately $3,373,398.84. This trade represents a 4.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 186,390 shares of company stock worth $7,283,371. Insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently bought and sold shares of the business. Allspring Global Investments Holdings LLC lifted its stake in shares of Roblox by 379.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock valued at $53,102,000 after purchasing an additional 729,379 shares during the last quarter. PensionDanmark Pensionsforsikringsaktieselskab boosted its holdings in Roblox by 35.5% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company’s stock worth $7,076,000 after purchasing an additional 34,120 shares in the last quarter. Odyssean LLC boosted its holdings in Roblox by 344.4% in the second quarter. Odyssean LLC now owns 40,038 shares of the company’s stock worth $2,177,000 after purchasing an additional 31,029 shares in the last quarter. Assenagon Asset Management S.A. increased its position in Roblox by 89.0% during the second quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company’s stock worth $102,984,000 after buying an additional 891,634 shares during the last quarter. Finally, National Pension Service increased its position in Roblox by 34.0% during the second quarter. National Pension Service now owns 1,243,524 shares of the company’s stock worth $67,623,000 after buying an additional 315,244 shares during the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Viral game boosts engagement expectations: The popularity of Steal an Egg appears to have driven better-than-expected third-quarter activity on Roblox. Wedbush reportedly raised its estimates to approximately $1.7 billion in bookings and $215 million in EBITDA, compared with previous estimates of $1.64 billion and $193 million. Roblox Is Up After Viral Hit Boosts Q3 Engagement Ahead of Earnings
• Positive Sentiment: Potential earnings catalyst: Roblox will report third-quarter 2026 results after market close on October 29. Investors are increasingly positioning for a possible upside surprise after prior concerns about slowing bookings growth and weaker monetization among younger users in the United States and Canada. Roblox to Report Third Quarter 2026 Financial Results
• Neutral Sentiment: Analyst views remain mixed: Wedbush maintained a Hold rating, while the reported median analyst price target is $60, above the recent trading level. That suggests upside potential, but the Hold stance underscores uncertainty about whether viral hits can translate into durable growth. Wedbush Sticks to Its Hold Rating for Roblox
• Neutral Sentiment: Institutional positioning is divided: In the latest reported quarter, 380 institutional investors added RBLX shares while 418 reduced their positions. Large purchases by FMR and AQR were offset by sizable reductions from Capital International Investors and Artisan Partners, indicating a lack of consensus.
• Negative Sentiment: Heavy insider selling: Company insiders reportedly made 77 open-market sales and no purchases during the past six months. While sales may reflect compensation or diversification, the absence of insider buying can weigh on investor confidence.
• Negative Sentiment: Competitive pressure from AI game creation: Alphabet and Unity announced a generative-AI gaming partnership that could make game development faster and more accessible, potentially challenging Roblox’s creator ecosystem and competitive position. Alphabet and Unity Level Up Game Development

Roblox Company Profile

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.