Roblox’s (RBLX) “Neutral” Rating Reaffirmed at Wedbush

Wedbush reissued their neutral rating on shares of Roblox (NYSE:RBLX) in a research report sent to investors on Friday, Marketbeat reports. They currently have a $40.00 price target on the stock, down from their prior price target of $65.00.

Other equities research analysts have also issued reports about the company. UBS Group reduced their price objective on Roblox from $49.00 to $45.00 and set a “neutral” rating for the company in a research note on Friday. HSBC lowered Roblox from a “buy” rating to a “hold” rating and set a $46.00 price target for the company. in a report on Friday, May 1st. Raymond James Financial assumed coverage on Roblox in a research note on Monday, June 29th. They issued a “market perform” rating on the stock. Canaccord Genuity Group set a $58.00 price objective on Roblox in a research report on Friday. Finally, Cantor Fitzgerald assumed coverage on Roblox in a research note on Monday, June 29th. They set an “overweight” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, thirteen have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $67.04.

Roblox Stock Down 26.7%

Shares of RBLX stock opened at $35.66 on Friday. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. Roblox has a 12 month low of $33.88 and a 12 month high of $150.59. The stock has a market cap of $23.95 billion, a P/E ratio of -24.94 and a beta of 1.41. The company has a 50 day simple moving average of $49.28 and a two-hundred day simple moving average of $56.93.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.08. The business had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 243.73%. The company’s revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the company posted ($0.41) EPS. On average, research analysts expect that Roblox will post -1.39 earnings per share for the current year.

Roblox announced that its board has approved a share buyback plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to purchase up to 9.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insiders Place Their Bets

In related news, CFO Naveen K. Chopra sold 16,863 shares of Roblox stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $763,556.64. Following the sale, the chief financial officer owned 380,758 shares of the company’s stock, valued at approximately $17,240,722.24. This trade represents a 4.24% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total value of $749,470.02. Following the sale, the director directly owned 1,294,501 shares in the company, valued at $58,213,709.97. This trade represents a 1.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 161,983 shares of company stock valued at $7,580,990. Insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Reyes Financial Architecture Inc. grew its holdings in Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after buying an additional 194 shares in the last quarter. Hanson & Doremus Investment Management purchased a new position in shares of Roblox in the first quarter worth $25,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox in the fourth quarter worth $27,000. Basecamp Wealth Advisors LLC lifted its holdings 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 in the last quarter. Finally, GW&K Investment Management LLC boosted its position in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after acquiring an additional 161 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported an adjusted second-quarter loss of $0.26 per share, narrower than the consensus loss estimate of approximately $0.33–$0.34. Revenue increased 8.3% year over year to $1.47 billion, although it was below the $1.60 billion analyst estimate. Roblox Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued investment in AI creation tools and efforts to expand Roblox’s gaming ecosystem, while daily active users grew 10% year over year. These initiatives could support longer-term engagement and monetization. Roblox Q2 Earnings Call Highlights AI Push and Monetization Reset
• Neutral Sentiment: TD Cowen cut its price target from $49 to $40 and moved to a Hold rating. Wedbush maintained Neutral but reduced its target from $65 to $40, indicating analysts see limited near-term upside while the outlook is reassessed. Roblox Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: Roblox forecast third-quarter bookings of $1.58 billion to $1.65 billion, below Wall Street expectations, and projected revenue growth of only 4% to 10%. Investors were particularly concerned that changes to discovery and recommendation algorithms are reducing in-app spending. Roblox set for worst one-day drop as discovery changes hurt in-app spending
• Negative Sentiment: Stricter age-verification and safety measures are weighing on user onboarding and engagement, creating additional uncertainty around bookings and monetization despite ongoing user growth. The disappointing outlook prompted multiple analysts to issue Sell ratings or sharply lower forecasts. Roblox shares plummet on revenue miss, withdrawn guidance
• Negative Sentiment: Several law firms announced or promoted a securities class action covering investors who purchased Roblox shares from October 31, 2024, through April 30, 2026. The August 7, 2026 lead-plaintiff deadline adds legal and reputational risk, although the announcements themselves do not establish liability. RBLX Investor Alert

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.