Roblox Corporation (NYSE:RBLX) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Roblox Corporation has received a consensus rating of "Moderate Buy" from 28 analysts, with an average price target of $124.56.
• Insider selling has been notable, with CEO David Baszucki disposing of 139,507 shares and CAO Amy Marie Rawlings selling 6,567 shares recently.
• Roblox posted revenue of $1.44 billion for the last quarter, significantly exceeding expectations, though it reported a loss of ($0.41) EPS.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have received a consensus rating of "Moderate Buy" from the twenty-eight analysts that are covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and twenty have given a buy rating to the company. The average 1 year price objective among analysts that have updated their coverage on the stock in the last year is $124.56.

RBLX has been the subject of a number of research reports. Oppenheimer reiterated an "outperform" rating and issued a $125.00 price objective (up from $80.00) on shares of Roblox in a research report on Wednesday, June 18th. BTIG Research lifted their price objective on Roblox from $159.00 to $173.00 and gave the stock a "buy" rating in a research report on Tuesday, September 9th. Wells Fargo & Company lifted their price objective on Roblox from $116.00 to $153.00 and gave the stock an "overweight" rating in a research report on Friday, August 1st. Benchmark lifted their price objective on Roblox from $77.00 to $150.00 and gave the stock a "buy" rating in a research report on Friday, August 1st. Finally, Arete Research set a $116.00 price objective on Roblox in a research report on Tuesday, September 9th.

Insider Buying and Selling

In other news, CAO Amy Marie Rawlings sold 6,567 shares of the business'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 $773,001.57. Following the completion of the transaction, the chief accounting officer directly owned 46,866 shares in the company, valued at approximately $5,516,596.86. The trade was a 12.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO David Baszucki sold 139,507 shares of the business's stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $105.19, for a total value of $14,674,741.33. Following the transaction, the chief executive officer owned 211,559 shares of the company's stock, valued at $22,253,891.21. The trade was a 39.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 597,798 shares of company stock valued at $69,517,978 over the last 90 days. 12.92% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors have recently modified their holdings of RBLX. AQR Capital Management LLC grew its position in shares of Roblox by 217.4% during the 1st quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company's stock worth $504,387,000 after buying an additional 6,007,322 shares during the period. Vanguard Group Inc. grew its position in shares of Roblox by 8.3% during the 1st quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock worth $3,359,854,000 after buying an additional 4,400,624 shares during the period. Norges Bank acquired a new position in shares of Roblox in the 2nd quarter valued at approximately $350,720,000. Ninety One UK Ltd acquired a new position in shares of Roblox in the 1st quarter valued at approximately $137,379,000. Finally, Ieq Capital LLC grew its position in shares of Roblox by 13.8% in the 1st quarter. Ieq Capital LLC now owns 18,889,973 shares of the company's stock valued at $1,101,097,000 after purchasing an additional 2,297,350 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Roblox Stock Performance

Roblox stock opened at $136.88 on Tuesday. The stock has a 50-day simple moving average of $126.39 and a 200 day simple moving average of $94.55. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 2.94. Roblox has a 12-month low of $37.50 and a 12-month high of $150.59. The stock has a market capitalization of $88.29 billion, a price-to-earnings ratio of -95.72 and a beta of 1.62.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share (EPS) 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 business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.20 billion. During the same period in the prior year, the firm earned ($0.32) earnings per share. The business's quarterly revenue was up 50.5% compared to the same quarter last year. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, research analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal 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.

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