Roblox (NYSE:RBLX) Stock Gets Price Target Reduction from Jefferies Financial Group

Key Points

• Jefferies cut its Roblox price target from $38 to $35 and reiterated an “underperform” rating, implying 22.43% downside from the share price cited in the report.
• Analyst views are mixed: MarketBeat reported an overall “hold” consensus and an average price target of $53.04, while several firms maintained or raised buy ratings.
• Roblox’s latest quarter was mixed: its loss per share was narrower than expected and revenue grew 15.6% year over year, but revenue fell short of analysts’ estimates and the company remained unprofitable.

Roblox (NYSE:RBLX - Get Free Report) had its price objective dropped by equities researchers at Jefferies Financial Group from $38.00 to $35.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage currently has an "underperform" rating on the stock. Jefferies Financial Group's target price points to a potential downside of 22.43% from the stock's current price.

RBLX has been the topic of several other reports. Wall Street Zen raised Roblox from a "sell" rating to a "hold" rating in a research note on Sunday, October 11th. Needham & Company LLC reissued a "buy" rating and set a $55.00 target price on shares of Roblox in a research note on Friday. Roth Capital reissued a "buy" rating and issued a $84.00 target price (up from $78.00) on shares of Roblox in a report on Monday, October 26th. Raymond James Financial restated a "buy" rating on shares of Roblox in a research note on Friday, September 11th. Finally, B. Riley Financial lifted their price target on shares of Roblox from $45.00 to $51.00 and gave the company a "buy" rating in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, twelve have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $53.04.

Roblox Price Performance

NYSE:RBLX traded up $2.24 during mid-day trading on Tuesday, reaching $45.12. The stock had a trading volume of 6,777,538 shares, compared to its average volume of 11,757,231. The stock has a 50-day simple moving average of $46.43 and a two-hundred day simple moving average of $52.48. The stock has a market capitalization of $30.23 billion, a PE ratio of -32.65 and a beta of 1.47. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. Roblox has a 12 month low of $33.88 and a 12 month high of $108.29.

Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share 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 analysts' expectations of $1.63 billion. During the same period in the prior year, the company earned ($0.37) earnings per share. The company's quarterly revenue was up 15.6% on a year-over-year basis. On average, equities analysts anticipate that Roblox will post -1.41 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO David Baszucki sold 52,568 shares of the company's stock in a transaction 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 sale, the chief executive officer owned 799,646 shares in the company, valued at approximately $30,354,562.16. This represents a 6.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the completion of the sale, the insider directly owned 398,064 shares of the company's stock, valued at $15,110,509.44. The trade was a 4.31% 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. Over the last ninety days, insiders have sold 169,724 shares of company stock valued at $6,659,063. 10.05% of the stock is currently owned by company insiders.

Institutional Trading of Roblox

Several hedge funds have recently made changes to their positions in RBLX. TD Waterhouse Canada Inc. raised its position in shares of Roblox by 21.5% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 1,152 shares of the company's stock valued at $50,000 after buying an additional 204 shares in the last quarter. Stonekeep Investments LLC grew its position in Roblox by 2.4% in the second quarter. Stonekeep Investments LLC now owns 9,070 shares of the company's stock worth $493,000 after acquiring an additional 213 shares in the last quarter. Activest Wealth Management increased its stake in 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 acquiring an additional 248 shares during the last quarter. Basecamp Wealth Advisors LLC increased its stake in Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock valued at $29,000 after acquiring an additional 252 shares during the last quarter. Finally, Root Financial Partners LLC raised its position in Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after purchasing an additional 283 shares in the last quarter. 94.46% of the stock is currently owned by institutional investors.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Analyst support remains constructive. Wolfe Research upgraded Roblox, while B. Riley raised its price target from $45 to $51 and maintained a “buy” rating. Citigroup also retained a “buy” rating and continues to see upside despite lowering its target from $60 to $55. Roblox upgraded at Wolfe Research
• Positive Sentiment: International revenue remains a key growth opportunity. Recent analyses focus on Roblox’s performance outside the U.S., suggesting that international bookings, user growth and monetization trends could influence Wall Street forecasts and the stock’s longer-term prospects. Stronger overseas execution would broaden Roblox’s growth runway. Unlocking Roblox international revenues
• Neutral Sentiment: Recent operating results provide a mixed backdrop. Roblox’s latest quarter showed revenue growth of 15.6% year over year and an earnings-per-share loss better than expected, but revenue came in below analysts’ estimates and the company remains unprofitable. The Q3 earnings presentation offers additional detail on bookings, engagement and forward priorities. Roblox 2026 Q3 results presentation
• Negative Sentiment: Several analysts reduced their valuation assumptions. JPMorgan cut its target from $53 to $46 and moved to “neutral”; DA Davidson lowered its target from $50 to $48 and also rated the shares “neutral.” These actions signal more limited near-term upside and caution about valuation or execution. JPMorgan Roblox rating

About Roblox

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.

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