Roblox (NYSE:RBLX) Raised to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen upgraded Roblox from “Sell” to “Hold,” while the broader analyst consensus remains “Hold” with a $60.79 price target.
• Roblox’s latest quarter beat EPS expectations, but revenue of $1.47 billion fell short of estimates and the company remains unprofitable, with analysts projecting a full-year loss.
• Investor sentiment is mixed: viral-game engagement may support upcoming results, but insider selling, uncertain monetization and competition from AI-powered game creation remain concerns.

Roblox (NYSE:RBLX - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued to clients and investors on Sunday, Wall Street Zen reports.

Other research analysts also recently issued research reports about the stock. Moffett Nathanson restated a "neutral" rating and issued a $40.00 price target on shares of Roblox in a research report on Monday, August 3rd. Citigroup decreased their price target on Roblox from $70.00 to $60.00 and set a "buy" rating for the company in a report on Monday, August 3rd. BMO Capital Markets downgraded Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 price objective on the stock. in a research note on Friday, July 31st. Needham & Company LLC raised their target price on Roblox from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, September 23rd. Finally, Seaport Research Partners downgraded Roblox to a "neutral" rating in a report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $60.79.

Roblox Price Performance

Shares of NYSE RBLX opened at $48.09 on Friday. The firm has a market cap of $32.22 billion, a P/E ratio of -33.63 and a beta of 1.47. 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 business's 50 day moving average is $42.30 and its 200-day moving average is $47.94. Roblox has a 1-year low of $33.88 and a 1-year high of $141.95.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.34) by $0.08. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the firm posted ($0.41) earnings per share. The firm's revenue was up 8.3% compared to the same quarter last year. Equities research analysts predict that Roblox will post -1.39 earnings per share for the current year.

Insiders Place Their Bets

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of the business's stock in a transaction on Tuesday, September 1st. The stock was sold at an average price of $40.47, for a total value of $674,473.02. Following the transaction, the director owned 1,261,169 shares of the company's stock, valued at approximately $51,039,509.43. The trade was a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Naveen Chopra sold 17,509 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $664,641.64. Following the sale, the chief financial officer directly owned 363,249 shares of the company's stock, valued at approximately $13,788,932.04. This represents a 4.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 186,390 shares of company stock valued at $7,283,371. 10.05% of the stock is currently owned by insiders.

Institutional Trading of Roblox

Several hedge funds have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC raised its position in shares of Roblox by 379.8% in the first 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 period. PensionDanmark Pensionsforsikringsaktieselskab lifted its stake in shares of Roblox by 35.5% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company's stock valued at $7,076,000 after buying an additional 34,120 shares in the last quarter. Odyssean LLC boosted its holdings in Roblox by 344.4% in the 2nd quarter. Odyssean LLC now owns 40,038 shares of the company's stock worth $2,177,000 after buying an additional 31,029 shares during the period. Assenagon Asset Management S.A. boosted its holdings in Roblox by 89.0% in the 2nd 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 period. Finally, National Pension Service grew its stake in Roblox by 34.0% in the 2nd quarter. National Pension Service now owns 1,243,524 shares of the company's stock valued at $67,623,000 after buying an additional 315,244 shares in the last quarter. Institutional investors own 94.46% of the company's stock.

Key Headlines Impacting Roblox

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

About Roblox

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.

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