Wedbush Reiterates “Outperform” Rating for Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX)‘s stock had its “outperform” rating reissued by equities researchers at Wedbush in a research note issued to investors on Friday,Benzinga reports. They currently have a $110.00 price objective on the stock. Wedbush’s target price would suggest a potential upside of 79.62% from the stock’s previous close.

A number of other equities research analysts also recently issued reports on the stock. Barclays set a $115.00 price objective on shares of Roblox in a research report on Friday. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research report on Monday, December 29th. Jefferies Financial Group set a $85.00 target price on shares of Roblox in a research report on Thursday, January 15th. Deutsche Bank Aktiengesellschaft set a $115.00 price target on shares of Roblox in a report on Tuesday, January 20th. Finally, Wells Fargo & Company dropped their price objective on shares of Roblox from $141.00 to $107.00 and set an “overweight” rating for the company in a report on Thursday, January 8th. Sixteen analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $123.58.

Roblox Stock Performance

NYSE RBLX traded up $0.67 during trading hours on Friday, hitting $61.24. The company’s stock had a trading volume of 4,771,907 shares, compared to its average volume of 13,458,209. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. The company’s 50 day simple moving average is $81.76 and its two-hundred day simple moving average is $108.29. Roblox has a 12 month low of $50.10 and a 12 month high of $150.59. The company has a market cap of $40.10 billion, a P/E ratio of -43.90 and a beta of 1.63.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.49) by $0.04. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The company had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter in the prior year, the company earned ($0.33) earnings per share. Roblox’s revenue was up 122.6% on a year-over-year basis. As a group, sell-side analysts expect that Roblox will post -1.49 EPS for the current fiscal year.

Insider Buying and Selling at Roblox

In related news, CFO Naveen K. Chopra sold 19,424 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $95.23, for a total value of $1,849,747.52. Following the completion of the sale, the chief financial officer owned 337,036 shares in the company, valued at approximately $32,095,938.28. The trade was a 5.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Matthew D. Kaufman sold 20,867 shares of the company’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $96.10, for a total value of $2,005,318.70. Following the completion of the sale, the insider owned 239,775 shares of the company’s stock, valued at $23,042,377.50. This represents a 8.01% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 423,899 shares of company stock valued at $37,883,851. 12.92% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in shares of Roblox in the 4th quarter valued at $272,000. GSA Capital Partners LLP grew its stake in Roblox by 143.6% during the 4th quarter. GSA Capital Partners LLP now owns 28,186 shares of the company’s stock valued at $2,284,000 after purchasing an additional 16,615 shares during the last quarter. Handelsbanken Fonder AB increased its holdings in shares of Roblox by 58.4% in the fourth quarter. Handelsbanken Fonder AB now owns 317,111 shares of the company’s stock valued at $25,696,000 after purchasing an additional 116,899 shares during the period. Csenge Advisory Group purchased a new position in shares of Roblox in the fourth quarter worth about $357,000. Finally, Capstone Capital Management Ltd acquired a new stake in shares of Roblox during the fourth quarter worth about $271,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Key Stories Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q4 results showed strong engagement and bookings growth: bookings jumped ~63%, daily active users rose ~69% and engaged hours climbed ~88%, underpinning investor optimism about user monetization and growth. Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Company beat on EPS (loss of $0.45 vs. -$0.49 est.) and gave stronger-than-expected first-quarter bookings guidance (range above Street consensus), which drove the after-hours and early-session jump. Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Analyst support: BTIG reaffirmed a Buy with a $141 target, signaling continued Wall Street conviction at some firms and likely supporting upside interest. BTIG Buy Rating
• Positive Sentiment: Roblox launched new AI tooling that helps developers create functioning in-game models from natural-language prompts — a strategic product push to attract developers and boost content supply/monetization over time. Roblox launches AI tech
• Neutral Sentiment: Market commentary framed recent January selloff as overdone (Piper Sandler), helping sentiment even as volatility remains. Piper Sandler Views Recent Roblox Selloff as Exaggerated
• Negative Sentiment: Revenue missed some Wall Street models: reported revenue was $1.42B vs. higher consensus figures cited by some outlets, which leaves room for skepticism despite bookings strength. Roblox Q4 press release / slides
• Negative Sentiment: Needham cut its price target sharply from $159 to $105 (still a Buy), a headline that can weigh on sentiment by narrowing upside expectations. Needham price target cut
• Negative Sentiment: Notable insider selling and sizable institutional position changes were highlighted in coverage — items investors watch for governance and signal risk appetite among insiders. Quiver/insider & institutional activity

Roblox Company Profile

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.