Bank of America Forecasts Strong Price Appreciation for Roblox (NYSE:RBLX) Stock

Key Points

• Bank of America has increased its price target for Roblox (NYSE:RBLX) from $159.00 to $171.00, signifying an expected upside of 33.83% from its previous close.
• Multiple analysts have issued price targets above $130, with Roblox receiving a consensus rating of "Moderate Buy" from 20 equity research analysts.
• Roblox reported revenue of $1.44 billion for the last quarter, representing a 50.5% year-over-year growth, though it missed EPS estimates.

Roblox (NYSE:RBLX - Get Free Report) had its price target lifted by investment analysts at Bank of America from $159.00 to $171.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has a "buy" rating on the stock. Bank of America's price objective would suggest a potential upside of 28.17% from the company's previous close.

A number of other research firms have also commented on RBLX. Wolfe Research raised Roblox from a "peer perform" rating to an "outperform" rating and set a $150.00 price objective on the stock in a research note on Friday, August 22nd. Wells Fargo & Company upped their price target on Roblox from $116.00 to $153.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. BMO Capital Markets upped their price target on Roblox from $135.00 to $150.00 and gave the company an "outperform" rating in a research note on Friday, August 1st. Barclays upped their price target on Roblox from $62.00 to $120.00 and gave the company an "equal weight" rating in a research note on Friday, August 1st. Finally, Needham & Company LLC upped their price target on Roblox from $79.00 to $159.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Roblox has an average rating of "Moderate Buy" and a consensus price target of $123.16.

Roblox Price Performance

Roblox stock traded up $0.46 on Monday, reaching $133.42. The company's stock had a trading volume of 5,238,408 shares, compared to its average volume of 8,864,180. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.97 and a current ratio of 0.97. The company has a market cap of $86.06 billion, a price-to-earnings ratio of -93.30 and a beta of 1.62. The business's fifty day moving average price is $122.89 and its 200 day moving average price is $90.98. Roblox has a twelve month low of $37.50 and a twelve month high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.04). The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%.Roblox's revenue for the quarter was up 50.5% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.32) EPS. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Equities analysts expect that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Roblox

In other Roblox news, Director Anthony P. Lee sold 111,112 shares of the stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $131.01, for a total value of $14,556,783.12. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO David Baszucki sold 454,963 shares of the stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $100.61, for a total value of $45,773,827.43. Following the completion of the transaction, the chief executive officer directly owned 211,559 shares in the company, valued at $21,284,950.99. The trade was a 68.26% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,993,861 shares of company stock valued at $210,622,673. 12.92% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roblox

Several hedge funds have recently added to or reduced their stakes in RBLX. Ameriprise Financial Inc. lifted its stake in Roblox by 35.2% in the fourth quarter. Ameriprise Financial Inc. now owns 460,217 shares of the company's stock valued at $26,629,000 after buying an additional 119,942 shares during the period. Captrust Financial Advisors increased its holdings in shares of Roblox by 22.9% in the fourth quarter. Captrust Financial Advisors now owns 22,710 shares of the company's stock worth $1,314,000 after acquiring an additional 4,230 shares in the last quarter. Focus Partners Wealth increased its holdings in shares of Roblox by 90.7% in the fourth quarter. Focus Partners Wealth now owns 18,822 shares of the company's stock worth $1,106,000 after acquiring an additional 8,953 shares in the last quarter. Hudson Bay Capital Management LP bought a new stake in shares of Roblox in the fourth quarter worth about $3,080,000. Finally, Moore Capital Management LP bought a new stake in shares of Roblox in the fourth quarter worth about $55,702,000. Institutional investors and hedge funds own 94.46% of the company's stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.