Bank of America Issues Positive Forecast for Roblox (NYSE:RBLX) Stock Price

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 objective raised by Bank of America from $159.00 to $171.00 in a research report issued to clients and investors on Monday,Benzinga reports. The firm currently has a "buy" rating on the stock. Bank of America's price objective suggests a potential upside of 28.17% from the stock's previous close.

Other equities analysts have also recently issued reports about the stock. Needham & Company LLC upped their price objective on shares of Roblox from $79.00 to $159.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. The Goldman Sachs Group upped their price target on shares of Roblox from $63.00 to $80.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 14th. JPMorgan Chase & Co. boosted their price objective on Roblox from $120.00 to $125.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. BMO Capital Markets raised their price objective on Roblox from $135.00 to $150.00 and gave the company an "outperform" rating in a report on Friday, August 1st. Finally, Barclays boosted their target price on Roblox from $62.00 to $120.00 and gave the stock an "equal weight" rating in a report on Friday, August 1st. Twenty analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $123.16.

Roblox Stock Performance

RBLX traded up $0.46 during midday trading on Monday, hitting $133.42. 5,235,000 shares of the company were exchanged, compared to its average volume of 8,777,061. The firm has a market capitalization of $86.06 billion, a price-to-earnings ratio of -93.30 and a beta of 1.62. Roblox has a 1-year low of $37.50 and a 1-year high of $150.59. The company's 50 day simple moving average is $122.30 and its 200 day simple moving average is $90.47. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.94.

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

Insider Buying and Selling

In other news, insider Arvind Chakravarthy sold 20,552 shares of the company's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $117.71, for a total transaction of $2,419,175.92. Following the completion of the transaction, the insider directly owned 242,469 shares of the company's stock, valued at approximately $28,541,025.99. This represents a 7.81% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Matthew D. Kaufman sold 6,000 shares of the company's stock in a transaction dated Thursday, September 4th. The stock was sold at an average price of $134.20, for a total value of $805,200.00. Following the transaction, the insider directly owned 275,015 shares of the company's stock, valued at approximately $36,907,013. This represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,993,861 shares of company stock valued at $210,622,673 over the last 90 days. 12.92% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. Total Investment Management Inc. acquired a new position in Roblox during the second quarter worth approximately $29,000. Whipplewood Advisors LLC purchased a new stake in Roblox in the 2nd quarter valued at $34,000. ORG Partners LLC purchased a new stake in Roblox in the 2nd quarter valued at $33,000. Generali Asset Management SPA SGR acquired a new position in Roblox in the second quarter valued at $40,000. Finally, Kiker Wealth Management LLC increased its stake in Roblox by 2,646.7% in the second quarter. Kiker Wealth Management LLC now owns 412 shares of the company's stock valued at $43,000 after purchasing an additional 397 shares during the period. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Company Profile

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.