Roblox (NYSE:RBLX) Rating Increased to Neutral at Arete

Key Points

• Roblox's rating was upgraded from "sell" to "neutral" by Arete, with a target price of $116.00, suggesting a potential downside of 9.77% from its current price.
• The company's most recent earnings report showed a revenue increase of 50.5% year-over-year, though it missed EPS estimates by ($0.04).
• Roblox's stock has a consensus rating of "Moderate Buy" among analysts, with a notable target price increase from several investment firms in recent reports.

Roblox (NYSE:RBLX - Get Free Report) was upgraded by investment analysts at Arete from a "sell" rating to a "neutral" rating in a research report issued to clients and investors on Tuesday, MarketBeat reports. The firm currently has a $116.00 target price on the stock. Arete's target price indicates a potential downside of 9.77% from the stock's current price.

RBLX has been the subject of a number of other reports. Needham & Company LLC boosted their price target on Roblox from $79.00 to $159.00 and gave the company a "buy" rating in a research note on Friday, August 1st. The Goldman Sachs Group boosted their price target on Roblox from $63.00 to $80.00 and gave the company a "neutral" rating in a research note on Wednesday, May 14th. Morgan Stanley boosted their price target on Roblox from $76.00 to $170.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. Canaccord Genuity Group boosted their price target on Roblox from $125.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Finally, Citigroup boosted their price target on Roblox from $123.00 to $152.00 and gave the company a "buy" rating in a research note on Wednesday, July 23rd. Twenty equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Roblox presently has an average rating of "Moderate Buy" and a consensus target price of $123.46.

Roblox Price Performance

Shares of NYSE:RBLX opened at $128.56 on Tuesday. Roblox has a fifty-two week low of $37.50 and a fifty-two week high of $150.59. The business has a 50-day simple moving average of $120.47 and a two-hundred day simple moving average of $89.38. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.97 and a current ratio of 0.97. The firm has a market cap of $82.93 billion, a price-to-earnings ratio of -89.90 and a beta of 1.62.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share 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 business had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same period last year, the firm posted ($0.32) EPS. Roblox'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 Mark Reinstra sold 150,000 shares of the business's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $99.75, for a total transaction of $14,962,500.00. Following the completion of the transaction, the insider directly owned 389,489 shares in the company, valued at approximately $38,851,527.75. The trade was a 27.80% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Anthony P. Lee sold 111,112 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $131.01, for a total value of $14,556,783.12. The disclosure for this sale can be found here. In the last ninety days, insiders sold 2,053,908 shares of company stock worth $216,385,384. 12.92% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RBLX. Total Investment Management Inc. purchased a new position in Roblox in the 2nd quarter worth approximately $29,000. Gordian Capital Singapore Pte Ltd lifted its holdings in Roblox by 74.8% in the 4th quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company's stock worth $32,000 after purchasing an additional 240 shares in the last quarter. ORG Partners LLC purchased a new position in Roblox in the 2nd quarter worth approximately $33,000. Larson Financial Group LLC lifted its holdings in Roblox by 819.0% in the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company's stock worth $34,000 after purchasing an additional 516 shares in the last quarter. Finally, Whipplewood Advisors LLC purchased a new position in Roblox in the 2nd quarter worth approximately $34,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.

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