Roblox (NYSE:RBLX) Downgraded by Wall Street Zen to "Sell"

Key Points

• Roblox has been downgraded from a "hold" to a "sell" rating by analysts at Wall Street Zen.
• The company reported a loss of ($0.41) EPS in its recent quarterly earnings, missing estimates, despite a revenue increase of 50.5% year-over-year.
• Overall, 20 analysts gave Roblox a "buy" rating, indicating a generally positive outlook, but with recent downgrades and performance concerns highlighted.

Roblox (NYSE:RBLX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

RBLX has been the topic of several other research reports. Canaccord Genuity Group upped their price target on Roblox from $125.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Wells Fargo & Company increased their price objective on Roblox from $153.00 to $155.00 and gave the company an "overweight" rating in a report on Friday. Arete Research set a $116.00 price objective on Roblox in a report on Tuesday, September 9th. Bank of America increased their price objective on Roblox from $159.00 to $171.00 and gave the company a "buy" rating in a report on Monday, September 8th. Finally, BMO Capital Markets increased their price objective on Roblox from $150.00 to $160.00 and gave the company an "outperform" rating in a report on Thursday. Twenty research analysts have rated the stock with a Buy rating, six have given a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, Roblox presently has an average rating of "Moderate Buy" and an average price target of $126.72.

Roblox Price Performance

Shares of NYSE RBLX opened at $122.91 on Friday. The stock's 50-day moving average is $128.89 and its two-hundred day moving average is $98.85. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.97 and a quick ratio of 0.97. Roblox has a 1-year low of $37.50 and a 1-year high of $150.59. The company has a market cap of $79.28 billion, a price-to-earnings ratio of -85.95 and a beta of 1.63.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.04). Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%.The company had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter last year, the company earned ($0.32) EPS. Roblox's revenue for the quarter 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. Analysts forecast that Roblox will post -1.49 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO David Baszucki sold 875 shares of the firm's stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $126.72, for a total value of $110,880.00. Following the completion of the sale, the chief executive officer directly owned 211,559 shares of the company's stock, valued at $26,808,756.48. This trade represents a 0.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Matthew D. Kaufman sold 6,000 shares of the firm's stock in a transaction that occurred on Thursday, September 18th. The shares were sold at an average price of $136.55, for a total value of $819,300.00. Following the completion of the sale, the insider directly owned 278,642 shares of the company's stock, valued at $38,048,565.10. This represents a 2.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 366,876 shares of company stock worth $47,386,869. Corporate insiders own 12.92% of the company's stock.

Institutional Trading of Roblox

Several hedge funds have recently modified their holdings of the business. Baird Financial Group Inc. lifted its holdings in shares of Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock valued at $767,000 after buying an additional 102 shares during the period. Lido Advisors LLC raised its holdings in Roblox by 1.3% during the second quarter. Lido Advisors LLC now owns 8,529 shares of the company's stock worth $897,000 after purchasing an additional 106 shares during the last quarter. Ossiam raised its holdings in Roblox by 2.1% during the second quarter. Ossiam now owns 6,000 shares of the company's stock worth $631,000 after purchasing an additional 123 shares during the last quarter. Emerald Advisers LLC raised its holdings in Roblox by 1.9% during the second quarter. Emerald Advisers LLC now owns 6,683 shares of the company's stock worth $703,000 after purchasing an additional 124 shares during the last quarter. Finally, Yousif Capital Management LLC raised its holdings in Roblox by 1.9% during the second quarter. Yousif Capital Management LLC now owns 6,925 shares of the company's stock worth $729,000 after purchasing an additional 127 shares during the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.