Roblox (NYSE:RBLX) Given New $52.00 Price Target at Wedbush

Roblox (NYSE:RBLX) had its price target reduced by research analysts at Wedbush from $55.00 to $52.00 in a research report issued on Friday, Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Wedbush‘s price target suggests a potential upside of 24.42% from the stock’s current price.

RBLX has been the topic of a number of other reports. BTIG Research raised their price target on shares of Roblox from $41.00 to $42.00 and gave the company a “sell” rating in a report on Wednesday. Wall Street Zen upgraded shares of Roblox from a “sell” rating to a “hold” rating in a research note on Sunday, October 11th. Citigroup reduced their price target on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. Wolfe Research downgraded Roblox from an “outperform” rating to a “hold” rating in a research note on Friday, July 31st. Finally, Raymond James Financial reissued a “buy” rating on shares of Roblox in a report on Friday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, thirteen have assigned 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 Stock Down 20.3%

RBLX stock traded down $10.66 during trading on Friday, hitting $41.80. 18,666,062 shares of the company’s stock traded hands, compared to its average volume of 11,715,016. The firm has a market capitalization of $28.00 billion, a P/E ratio of -29.56 and a beta of 1.47. Roblox has a 1 year low of $33.88 and a 1 year high of $119.85. 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 business has a fifty day simple moving average of $46.25 and a two-hundred day simple moving average of $52.86.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.11. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%. The firm had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same period in the previous year, the company posted ($0.37) EPS. The business’s revenue for the quarter was up 15.6% compared to the same quarter last year. Sell-side analysts anticipate that Roblox will post -1.41 EPS for the current year.

Insider Transactions at Roblox

In related news, insider Matthew D. Kaufman sold 14,904 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $565,755.84. Following the sale, the insider owned 335,060 shares in the company, valued at $12,718,877.60. This represents a 4.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 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 approximately $30,354,562.16. This trade represents a 6.17% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 186,390 shares of company stock valued at $7,283,371. 10.05% of the stock is owned by company insiders.

Institutional Trading of Roblox

Several large investors have recently made changes to their positions in the business. Activest Wealth Management raised its position in shares of Roblox by 72.9% in the third quarter. Activest Wealth Management now owns 588 shares of the company’s stock valued at $25,000 after buying an additional 248 shares during the last quarter. Basecamp Wealth Advisors LLC boosted its position in Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after acquiring an additional 252 shares during the last quarter. Mather Group LLC. grew its stake in Roblox by 2,458.6% during the 3rd quarter. Mather Group LLC. now owns 742 shares of the company’s stock valued at $31,000 after acquiring an additional 713 shares in the last quarter. Root Financial Partners LLC grew its stake in Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock valued at $32,000 after acquiring an additional 283 shares in the last quarter. Finally, Pinnacle Wealth Planning Services Inc. raised its holdings in Roblox by 234.7% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 753 shares of the company’s stock valued at $32,000 after acquiring an additional 528 shares during the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Roblox

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 analyst consensus loss of $0.43. Revenue increased 15.6% year over year to approximately $1.57 billion, although it fell short of estimates near $1.63 billion. Roblox Stock Sells Off Despite Q3 Earnings Beat: Details
• Positive Sentiment: Gross profit rose faster than revenue, and operating cash flow remained positive at about $395 million. These figures provide some support for the long-term profitability story despite the continuing net loss.
• Neutral Sentiment: The earnings-driven selloff extended beyond individual shareholders, affecting exchange-traded funds and other gaming-related companies with Roblox exposure. This indicates that the report is being treated as a broader signal about consumer engagement in interactive entertainment. Roblox Just Sank 15.48%. Here’s What It Means for Your ETFs
• Negative Sentiment: Daily active users fell 9% year over year to 138 million, marking Roblox’s first reported annual decline in this metric. Engagement hours dropped 15% to 34 billion, raising concerns about slowing user retention and monetization. Roblox Narrows Loss as User, Engagement Metrics Fall
• Negative Sentiment: Management’s fourth-quarter bookings outlook was viewed as weak, overshadowing the quarterly bookings and earnings beats. Investors are also concerned that the anticipated release and marketing cycle surrounding GTA VI could compete for players’ attention during the holiday period. Roblox Plunges as Daily Users Shrink and GTA VI Clouds Holiday Outlook
• Negative Sentiment: Additional overhangs include continuing losses, elevated liabilities, reported insider selling, and scrutiny from short sellers and shareholder attorneys regarding user metrics and platform safety. These issues may reinforce investor concerns about Roblox’s valuation and execution risk.

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.