Roblox (NYSE:RBLX) Rating Increased to Hold at Arete Research

Key Points

• The rating of Roblox (NYSE:RBLX) has been upgraded to "hold" by Arete Research, indicating a shift from a previous "sell" rating.
• Multiple analysts have recently adjusted their price targets for Roblox, with Needham & Company raising it to $159.00 while BMO Capital Markets set it at $150.00.
• Roblox reported a revenue increase of 50.5% year-over-year, but experienced a loss of ($0.41) earnings per share, which was below analysts' expectations.

Roblox (NYSE:RBLX - Get Free Report) was upgraded by research analysts at Arete Research to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

RBLX has been the subject of a number of other reports. Needham & Company LLC raised their price target on Roblox from $79.00 to $159.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Cowen reaffirmed a "sell" rating on shares of Roblox in a report on Monday, August 18th. BMO Capital Markets raised their price target on Roblox from $135.00 to $150.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Wells Fargo & Company raised their price target on Roblox from $116.00 to $153.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, Arete raised Roblox from a "sell" rating to a "neutral" rating and set a $116.00 price target for the company in a report on Tuesday. Twenty investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Roblox currently has a consensus rating of "Moderate Buy" and a consensus price target of $123.16.

Roblox Stock Performance

NYSE:RBLX opened at $132.88 on Tuesday. 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 business has a fifty day simple moving average of $121.71 and a two-hundred day simple moving average of $89.97. Roblox has a 1 year low of $37.50 and a 1 year high of $150.59. The company has a market capitalization of $85.71 billion, a P/E ratio of -92.92 and a beta of 1.62.

Roblox (NYSE:RBLX - Get Free Report) last released its 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 return on equity of 372.96% and a negative net margin of 23.67%.The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same period in the prior year, the business 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, analysts expect that Roblox will post -1.49 earnings per share for the current year.

Insider Activity at Roblox

In related news, insider Matthew D. Kaufman sold 6,000 shares of Roblox stock in a transaction on Thursday, September 4th. The stock was sold at an average price of $134.20, for a total transaction of $805,200.00. Following the completion of the sale, the insider owned 275,015 shares of the company's stock, valued at approximately $36,907,013. This trade represents a 2.14% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Arvind Chakravarthy sold 20,552 shares of Roblox stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $117.71, for a total value of $2,419,175.92. Following the sale, the insider directly owned 242,469 shares of the company's stock, valued at $28,541,025.99. This represents a 7.81% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,993,861 shares of company stock valued at $210,622,673 in the last ninety days. 12.92% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roblox

Several large investors have recently added to or reduced their stakes in RBLX. Total Investment Management Inc. bought a new stake in Roblox during the second quarter worth about $29,000. Whipplewood Advisors LLC purchased a new position in shares of Roblox during the 2nd quarter valued at about $34,000. ORG Partners LLC purchased a new position in shares of Roblox during the 2nd quarter valued at about $33,000. Generali Asset Management SPA SGR bought a new stake in Roblox in the 2nd quarter worth approximately $40,000. Finally, Kiker Wealth Management LLC boosted its stake in Roblox by 2,646.7% in the second quarter. Kiker Wealth Management LLC now owns 412 shares of the company's stock worth $43,000 after buying an additional 397 shares in the last quarter. Institutional investors own 94.46% of the company's stock.

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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