DA Davidson Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Key Points

• DA Davidson cut its price target on Roblox from $65 to $47.50 and kept a "neutral" rating, part of a broader analyst re‑rating that includes steep cuts from firms like Bank of America and a consensus that now skews to "Hold."
• Shares tumbled to about $45.15 on heavy volume after management slashed full‑year revenue/bookings guidance, blaming new child‑safety and age‑verification measures that have hurt onboarding, communication and monetization.
• Roblox beat EPS estimates with a smaller‑than‑expected loss (‑$0.35 vs. ‑$0.41) and reported 43.4% year‑over‑year revenue growth to $1.44B, but revenue missed Street estimates and insiders have been net sellers amid the selloff.

Roblox (NYSE:RBLX - Get Free Report) had its price target cut by analysts at DA Davidson from $65.00 to $47.50 in a research note issued to investors on Friday,Benzinga reports. The firm presently has a "neutral" rating on the stock. DA Davidson's price target would indicate a potential upside of 5.21% from the company's previous close.

Several other research analysts have also commented on RBLX. Wells Fargo & Company cut their price target on Roblox from $97.00 to $78.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th. Deutsche Bank Aktiengesellschaft set a $115.00 price target on Roblox in a research report on Tuesday, January 20th. Freedom Capital raised Roblox from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 6th. UBS Group set a $74.00 price target on Roblox in a research report on Friday, February 6th. Finally, Wolfe Research initiated coverage on Roblox in a research report on Friday. They set an "outperform" rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, thirteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, Roblox currently has an average rating of "Hold" and a consensus price target of $93.61.

Roblox Stock Performance

RBLX traded down $10.11 during trading on Friday, hitting $45.15. 53,271,696 shares of the stock were exchanged, compared to its average volume of 11,689,348. The firm has a market capitalization of $30.19 billion, a P/E ratio of -29.13 and a beta of 1.67. Roblox has a 1-year low of $41.75 and a 1-year high of $150.59. The stock has a fifty day moving average price of $59.46 and a two-hundred day moving average price of $80.23. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The firm's revenue was up 43.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.32) earnings per share. As a group, sell-side analysts predict that Roblox will post -1.6 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Gregory Baszucki sold 16,666 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the transaction, the director owned 1,302,834 shares of the company's stock, valued at approximately $75,499,230.30. The trade was a 1.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 30,034 shares of Roblox stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $72.65, for a total value of $2,181,970.10. Following the completion of the sale, the insider owned 307,263 shares in the company, valued at approximately $22,322,656.95. This trade represents a 8.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 551,996 shares of company stock valued at $38,421,146. 12.92% of the stock is owned by company insiders.

Institutional Trading of Roblox

Institutional investors have recently modified their holdings of the business. National Pension Service increased its stake in Roblox by 7.3% during the third quarter. National Pension Service now owns 1,697,820 shares of the company's stock worth $235,182,000 after acquiring an additional 115,096 shares during the last quarter. SG Americas Securities LLC increased its stake in Roblox by 298.4% during the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company's stock worth $45,617,000 after acquiring an additional 246,652 shares during the last quarter. Yarbrough Capital LLC increased its stake in Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company's stock worth $4,646,000 after acquiring an additional 53,780 shares during the last quarter. Cypress Wealth Services LLC purchased a new stake in shares of Roblox in the fourth quarter worth about $2,373,000. Finally, Tokio Marine Asset Management Co. Ltd. purchased a new stake in shares of Roblox in the third quarter worth about $2,895,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Needham initiated coverage with a Buy and $60 price target, highlighting upside versus the current level and providing a modest bullish counterpoint for investors looking for long-term conviction. Benzinga
• Neutral Sentiment: Roblox beat EPS estimates for the quarter (smaller-than-expected loss), and revenue grew year-over-year, giving some evidence that the core business still generates growth even as guidance weakens. Earnings / Slide Deck
• Negative Sentiment: Bank of America slashed its price target from $165 to $48 and downgraded RBLX to Neutral, the most aggressive analyst move today and a clear signal that Wall Street is re-rating the company on sustainability of growth after the safety-driven slowdown. BofA Article
• Negative Sentiment: Management cut full‑year revenue/bookings guidance (FY revenue now guided materially below prior ranges) and issued Q2 guidance below Street estimates; the company blamed new child-safety and age‑verification measures that have reduced communication, onboarding and monetization. This is the primary driver of the stock decline. Reuters
• Negative Sentiment: Multiple outlets report steep after‑hours and intraday drops (market reaction amplified by heavy volume), and other shops (BTIG, others) downgraded or trimmed targets — creating near‑term selling pressure and raising questions about user/booking recovery timing. CNBC
• Negative Sentiment: Analyst moves are mixed but skew negative: while TD Cowen moved to Hold, BTIG and others cut ratings or targets; BofA’s extreme PT cut is particularly notable because it implies materially lower expectations for long‑term monetization on the platform. Analyst Coverage

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.

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