Roblox Corporation (NYSE:RBLX) Receives Consensus Recommendation of "Hold" from Brokerages

Key Points

• Consensus "Hold": Twenty‑eight brokerages average a Hold on RBLX (1 sell, 14 hold, 12 buy, 1 strong buy) with a one‑year analyst target of about $87.17.
• Guidance reset and selloff: Management cut bookings by nearly $1B tied to mandatory age‑verification and communication limits, prompting sharp price‑target cuts (e.g., Goldman $125→$65, JPMorgan $100→$75), 52‑week lows, rising litigation inquiries, and notable insider stock sales.
• Mixed fundamentals: Q1 revenue grew 43% to $1.44B but missed estimates of $1.74B; EPS was -$0.35 (beat -$0.41); the stock trades near $44 with a market cap around $29.6B and negative margins/ROE.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have earned an average recommendation of "Hold" from the twenty-eight brokerages that are covering the company, Marketbeat.com reports. One research analyst has rated the stock with a sell rating, fourteen have given a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have covered the stock in the last year is $87.1667.

A number of brokerages have weighed in on RBLX. JPMorgan Chase & Co. cut their price objective on shares of Roblox from $100.00 to $75.00 and set a "neutral" rating on the stock in a report on Friday, February 6th. BTIG Research cut Roblox from a "buy" rating to a "neutral" rating in a research report on Friday, May 1st. The Goldman Sachs Group cut their price target on Roblox from $125.00 to $65.00 and set a "buy" rating on the stock in a research note on Friday. Roth Mkm set a $65.00 price objective on Roblox in a research report on Tuesday. Finally, BMO Capital Markets reiterated an "outperform" rating on shares of Roblox in a research note on Friday, February 6th.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Citigroup kept a "Buy" rating while cutting its price target from $90 to $70, which signals analyst conviction that there remains upside from current levels if the company stabilizes growth. Citigroup price target note
• Positive Sentiment: Some investors/analysts view the selloff as a potential buying opportunity after the sharp drop; pieces arguing the pullback creates an entry point may attract value‑oriented buyers. Trefis: Entry Point
• Neutral Sentiment: Broader industry moves on teen safety (Meta rolling out AI age verification) provide context: regulators and platforms are tightening controls, but Barron's argues Meta's measures won't hit growth the same way — useful context but not directly remedying Roblox's near‑term headwinds. Barron's on Meta teen safety
• Neutral Sentiment: Analysis of Roblox's reliance on international sales highlights mixed tails and could shape future guidance and estimates; investors should watch regional trends and FX/revenue mix. Yahoo/Zacks on international sales
• Negative Sentiment: Management's guidance reset (nearly $1B lower bookings) tied to mandatory age verification and communication limits is the primary driver of the selloff — it directly pressures user‑growth forecasts and revenue momentum. Fool: Guidance and growth hit Trefis: Guidance cut details
• Negative Sentiment: Multiple law firms have launched securities‑fraud investigations (Block & Leviton; Kahn Swick & Foti), increasing litigation risk and adding downward pressure on sentiment. Watch for any formal filings or subpoenas that could broaden the issue. Block & Leviton notice KSF investigation notice
• Negative Sentiment: Coverage noting the stock hitting 52‑week lows and elevated trading volume reflects heightened downside momentum and investor nervousness; technical and sentiment factors may amplify short‑term weakness. MSN: 52‑week low coverage

Insider Activity

In other news, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the completion of the transaction, the director owned 1,302,834 shares of the company's stock, valued at $75,499,230.30. The trade was a 1.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 272,269 shares of the company's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $72.66, for a total transaction of $19,783,065.54. Following the completion of the transaction, the chief executive officer owned 811,373 shares in the company, valued at approximately $58,954,362.18. The trade was a 25.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 551,996 shares of company stock valued at $38,421,146. 12.92% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. WPG Advisers LLC lifted its position in Roblox by 17.8% in the 3rd quarter. WPG Advisers LLC now owns 555 shares of the company's stock valued at $77,000 after acquiring an additional 84 shares in the last quarter. Baird Financial Group Inc. boosted its stake in Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock valued at $767,000 after purchasing an additional 102 shares during the last quarter. Sunbelt Securities Inc. increased its holdings in shares of Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after purchasing an additional 105 shares in the last quarter. Brown Brothers Harriman & Co. increased its holdings in shares of Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock worth $560,000 after purchasing an additional 110 shares in the last quarter. Finally, QTR Family Wealth LLC raised its stake in shares of Roblox by 2.6% in the third quarter. QTR Family Wealth LLC now owns 4,446 shares of the company's stock worth $616,000 after purchasing an additional 111 shares during the last quarter. Institutional investors own 94.46% of the company's stock.

Roblox Stock Performance

Shares of RBLX stock opened at $44.08 on Wednesday. Roblox has a 12 month low of $41.75 and a 12 month high of $150.59. The stock has a market cap of $29.60 billion, a PE ratio of -27.90 and a beta of 1.50. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company's fifty day moving average price is $59.10 and its 200-day moving average price is $78.85.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same period last year, the business earned ($0.32) EPS. Roblox's quarterly revenue was up 43.4% compared to the same quarter last year. On average, equities analysts expect that Roblox will post -1.55 EPS for the current fiscal year.

About Roblox

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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