Roblox (NYSE:RBLX) Price Target Lowered to $47.50 at DA Davidson

Roblox (NYSE:RBLX) had its price target cut by DA Davidson from $65.00 to $47.50 in a research report sent to investors on Friday,Benzinga reports. They currently have a neutral rating on the stock.

RBLX has been the subject of several other research reports. UBS Group set a $74.00 price objective on Roblox in a report on Friday, February 6th. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and reduced their target price for the stock from $54.00 to $49.00 in a research note on Friday. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a research note on Friday, March 27th. Barclays reduced their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a research note on Friday. Finally, Needham & Company LLC initiated coverage on Roblox in a research report on Friday. They set a “buy” rating and a $60.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Roblox presently has an average rating of “Hold” and an average price target of $90.46.

Roblox Trading Down 18.3%

NYSE RBLX traded down $10.11 during trading hours on Friday, hitting $45.15. 53,314,250 shares of the company were exchanged, compared to its average volume of 8,542,216. The stock has a 50-day moving average price of $59.46 and a 200 day moving average price of $80.23. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65. Roblox has a 52 week low of $41.75 and a 52 week high of $150.59. The stock has a market cap of $30.19 billion, a PE ratio of -29.13 and a beta of 1.50.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative return on equity of 285.88% and a negative net margin of 20.69%.The company’s quarterly revenue was up 43.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.32) earnings per share. Analysts forecast that Roblox will post -1.6 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Matthew D. Kaufman sold 13,325 shares of the company’s stock in a transaction on Monday, April 13th. The stock was sold at an average price of $57.94, for a total transaction of $772,050.50. Following the sale, the insider owned 364,320 shares of the company’s stock, valued at approximately $21,108,700.80. This represents a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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, insider Arvind Chakravarthy sold 40,646 shares of the company’s stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total value of $2,732,630.58. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 551,996 shares of company stock worth $38,421,146. 12.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roblox

Institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. lifted its position in Roblox by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company’s stock valued at $5,142,065,000 after acquiring an additional 1,020,786 shares during the last quarter. Capital International Investors lifted its position in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after acquiring an additional 2,184,439 shares during the last quarter. Morgan Stanley lifted its position in Roblox by 8.1% in the fourth quarter. Morgan Stanley now owns 20,728,914 shares of the company’s stock valued at $1,679,664,000 after acquiring an additional 1,555,549 shares during the last quarter. State Street Corp lifted its position in Roblox by 3.3% in the fourth quarter. State Street Corp now owns 13,812,362 shares of the company’s stock valued at $1,119,216,000 after acquiring an additional 442,518 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in Roblox by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company’s stock valued at $988,002,000 after acquiring an additional 547,103 shares during the last quarter. 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: Needham & Company started coverage with a Buy and a $60 price target (largest bullish analyst call among peers), which offers upside relative to recent levels. Needham Coverage
• Neutral Sentiment: TD Cowen moved RBLX from Sell to Hold with a $49 target (small upside vs. current price), a modestly constructive tone compared with broader downgrades. TD Cowen Update
• Neutral Sentiment: UBS and DA Davidson cut price targets (UBS to $49, DA Davidson to $47.50) and set Neutral ratings — these trims signal lower investor expectation but still imply small upside from the current level. UBS/DA Davidson Notes TickerReport
• Negative Sentiment: The core driver: Roblox cut FY26 revenue/bookings guidance and lowered Q2 revenue expectations, citing that new child‑safety measures (age verification and discovery algorithm changes) are reducing sign‑ups and in‑game spending — this guidance cut is the primary reason the shares are under pressure. Reuters: Bookings Forecast CNBC: Safety Measures
• Negative Sentiment: Major sell‑side revisions: Bank of America slashed its target from $165 to $48 and downgraded to Neutral — a highly negative, high‑profile reset that likely amplified selling. 247WallSt: BofA Cut
• Negative Sentiment: Legal/ shareholder pressure: law firms (Block & Leviton, Ademi LLP) have opened investigations into possible securities‑fraud or disclosure issues tied to guidance and safety disclosures, adding regulatory and litigation risk. GlobeNewsWire: Investigation PR Newswire: Ademi LLP

About Roblox

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.