Roblox (NYSE:RBLX) Downgraded by BTIG Research to "Neutral"

Key Points

• Downgrade: BTIG Research cut Roblox from a "buy" to a "neutral" rating, while the Street consensus remains a "Moderate Buy" with a $108.24 average price target.
• Quarter and guidance: Roblox beat EPS (-$0.35 vs. -$0.41) but missed revenue ($1.44B vs. $1.74B expected) despite revenue rising 43.4% YoY, and management sharply trimmed annual bookings/revenue guidance blaming new safety and age‑verification measures, which triggered a market selloff.
• Insider and institutional activity: Insiders sold about 551,996 shares (~$38.4M) in the past three months (insiders own ~12.9%), while institutional investors/hedge funds hold roughly 94.46% of the stock.

Roblox (NYSE:RBLX - Get Free Report) was downgraded by investment analysts at BTIG Research from a "buy" rating to a "neutral" rating in a research note issued on Friday.

A number of other research analysts also recently weighed in on RBLX. Wedbush set a $90.00 target price on shares of Roblox in a research report on Thursday, April 23rd. Wall Street Zen raised shares of Roblox from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. DA Davidson initiated coverage on Roblox in a report on Wednesday, March 4th. They issued a "neutral" rating and a $65.00 price objective for the company. BMO Capital Markets reaffirmed an "outperform" rating on shares of Roblox in a research report on Friday, February 6th. Finally, Needham & Company LLC dropped their target price on Roblox from $159.00 to $105.00 and set a "buy" rating on the stock in a report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Roblox presently has an average rating of "Moderate Buy" and a consensus price target of $108.24.

Roblox Stock Down 1.5%

NYSE:RBLX opened at $55.43 on Friday. The stock has a 50-day simple moving average of $59.46 and a 200 day simple moving average of $80.23. Roblox has a 52-week low of $51.23 and a 52-week high of $150.59. The company has a market cap of $37.07 billion, a PE ratio of -35.76 and a beta of 1.67. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96.

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

Insider Buying and Selling at Roblox

In related news, insider Matthew D. Kaufman sold 30,034 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $72.65, for a total value of $2,181,970.10. Following the sale, the insider owned 307,263 shares in the company, valued at approximately $22,322,656.95. This represents a 8.90% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark Reinstra sold 60,000 shares of the firm's stock in a transaction on Friday, February 13th. The shares were sold at an average price of $63.94, for a total value of $3,836,400.00. Following the sale, the insider directly owned 394,322 shares of the company's stock, valued at $25,212,948.68. This represents a 13.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 551,996 shares of company stock worth $38,421,146 in the last three months. 12.92% of the stock is owned by insiders.

Institutional Trading of Roblox

Hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in Roblox in the 4th quarter valued at about $435,424,000. Vanguard Group Inc. lifted its position in Roblox by 5.6% during the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company's stock worth $8,648,911,000 after acquiring an additional 3,284,073 shares during the last quarter. SRS Investment Management LLC bought a new stake in shares of Roblox during the fourth quarter worth approximately $238,065,000. Capital International Investors boosted its holdings in shares of Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after acquiring an additional 2,184,439 shares during the period. Finally, ValueAct Holdings L.P. grew its position in shares of Roblox by 39.5% in the fourth quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company's stock valued at $484,221,000 after purchasing an additional 1,692,600 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q1 results showed improvement vs. last year: Roblox posted a smaller-than-expected loss and revenue was up substantially year-over-year, underscoring continued platform scale. Roblox (RBLX) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Regulatory/compliance activity: Roblox said it is implementing control measures to comply with Indonesia’s social media rules for users under 16 — this is operationally relevant but not an immediate earnings surprise. Roblox announces control measures to comply with Indonesia's social media curb
• Neutral Sentiment: Full earnings call transcript and slides are available for deeper read-through of management’s explanation of user trends, safety investments and margin outlook. Review the call for color on timing of user‑recovery assumptions. Roblox Corporation (RBLX) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Guidance cut: management sharply trimmed annual bookings/revenue expectations and lowered Q2 revenue guidance, citing the impact of new safety features and age verification that have reduced user communication and slowed new-user growth — the primary driver of the selloff. Roblox slashes annual bookings forecast as new safety features take their toll
• Negative Sentiment: Market reaction and analyst concerns: media and markets coverage notes the reduced outlook is below Street expectations and flagged slower user monetization, which prompted a sharp intraday/after‑hours decline in the stock. Roblox Cuts Outlook as Safety Efforts Weigh on First-Quarter Results
• Negative Sentiment: Reputational/legal risk: a media report about an alleged safety failure and a lawsuit was published, which could add regulatory, litigation or PR pressure for the company. Roblox allowed predator to pay Uber driver $1K to abduct teen girl who was sexually assaulted, locked in a room: lawsuit

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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