Roblox Corporation (NYSE:RBLX) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Roblox Corporation has received a consensus rating of "Moderate Buy" from 26 ratings firms, with two sell ratings, four hold ratings, and twenty buy ratings.
• Recent price targets for Roblox stock have been raised by multiple analysts, with Morgan Stanley giving a target of $170.00, significantly higher than previous estimates.
• Roblox reported a 50.5% year-over-year increase in revenue to $1.44 billion, but posted a quarterly loss of ($0.41) EPS, missing estimates slightly.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twenty-six analysts that are presently covering the company, Marketbeat.com reports. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and twenty have assigned a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $119.00.

A number of equities analysts recently commented on RBLX shares. Benchmark lifted their price objective on Roblox from $77.00 to $150.00 and gave the stock a "buy" rating in a research note on Friday, August 1st. Wall Street Zen lowered shares of Roblox from a "hold" rating to a "sell" rating in a report on Saturday, August 2nd. Wedbush restated an "outperform" rating and issued a $165.00 target price on shares of Roblox in a report on Monday, August 25th. Piper Sandler boosted their target price on shares of Roblox from $105.00 to $138.00 and gave the company an "overweight" rating in a report on Thursday, July 24th. Finally, Barclays boosted their target price on shares of Roblox from $62.00 to $120.00 and gave the company an "equal weight" rating in a report on Friday, August 1st.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 687,500 shares of the business's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $87.97, for a total value of $60,479,375.00. Following the transaction, the chief executive officer owned 211,559 shares in the company, valued at $18,610,845.23. The trade was a 76.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold a total of 4,935,047 shares of company stock valued at $478,661,185 in the last quarter. 12.92% of the stock is owned by insiders.

Hedge Funds Weigh In On Roblox

Institutional investors have recently made changes to their positions in the stock. Nuveen LLC acquired a new position in shares of Roblox during the first quarter valued at about $70,254,000. Fox Run Management L.L.C. raised its holdings in shares of Roblox by 56.5% during the first quarter. Fox Run Management L.L.C. now owns 12,161 shares of the company's stock valued at $709,000 after purchasing an additional 4,390 shares during the period. Long Corridor Asset Management Ltd acquired a new position in shares of Roblox during the first quarter valued at about $4,372,000. Mirae Asset Global Investments Co. Ltd. raised its holdings in shares of Roblox by 15.5% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 35,483 shares of the company's stock valued at $2,096,000 after purchasing an additional 4,760 shares during the period. Finally, Kentucky Retirement Systems Insurance Trust Fund acquired a new position in shares of Roblox during the first quarter valued at about $890,000. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Trading Down 1.7%

Shares of Roblox stock traded down $2.20 during midday trading on Friday, reaching $124.68. The company had a trading volume of 5,445,299 shares, compared to its average volume of 9,673,137. The stock has a fifty day moving average price of $117.56 and a 200 day moving average price of $86.54. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.97 and a quick ratio of 0.97. The firm has a market cap of $80.42 billion, a PE ratio of -87.19 and a beta of 1.63. Roblox has a fifty-two week low of $37.50 and a fifty-two week 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 company 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 was up 50.5% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.32) earnings per share. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts anticipate that Roblox will post -1.49 earnings per share for the current year.

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.