Roblox (NYSE:RBLX) Upgraded to Outperform at Wolfe Research

Key Points

• Roblox's rating has been upgraded to outperform by Wolfe Research, with a target price of $150.00, indicating a potential upside of over 30% from its previous close.
• The stock has faced mixed ratings from analysts, with 20 classified as buy, four as hold, and two as sell, leading to an average rating of "Moderate Buy."
• Roblox recently reported a quarterly revenue of $1.44 billion, up 50.5% year-over-year, but missed earnings per share expectations by $0.04.

Wolfe Research upgraded shares of Roblox (NYSE:RBLX - Free Report) from a peer perform rating to an outperform rating in a research report report published on Friday morning, Marketbeat reports. The firm currently has $150.00 price objective on the stock.

Several other equities research analysts also recently weighed in on the company. Morgan Stanley increased their price objective on Roblox from $76.00 to $170.00 and gave the company an "overweight" rating in a report on Friday, August 1st. Wall Street Zen cut Roblox from a "hold" rating to a "sell" rating in a research report on Saturday, August 2nd. Citigroup increased their price objective on Roblox from $123.00 to $152.00 and gave the stock a "buy" rating in a research report on Wednesday, July 23rd. Raymond James Financial cut Roblox from a "strong-buy" rating to an "outperform" rating and increased their price objective for the stock from $81.00 to $130.00 in a research report on Wednesday, July 23rd. Finally, Piper Sandler raised their price objective on shares of Roblox from $105.00 to $138.00 and gave the company an "overweight" rating in a research report on Thursday, July 24th. Twenty research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $119.00.

Roblox Stock Up 2.3%

Shares of Roblox stock traded up $2.6430 during trading hours on Friday, hitting $117.4930. The company had a trading volume of 7,640,384 shares, compared to its average volume of 10,038,824. The company's 50-day moving average is $115.24 and its two-hundred day moving average is $84.61. Roblox has a twelve month low of $37.50 and a twelve month high of $150.59. 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 company has a market cap of $75.79 billion, a P/E ratio of -82.16 and a beta of 1.63.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.37) by ($0.04). The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.20 billion. Roblox had a negative net margin of 23.67% and a negative return on equity of 372.96%. The company's quarterly revenue was up 50.5% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.32) EPS. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Arvind Chakravarthy sold 20,552 shares of the business's stock in a transaction dated 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 in the company, valued at $28,541,025.99. The trade was a 7.81% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Anthony P. Lee sold 66,000 shares of the business's stock in a transaction dated Tuesday, August 5th. The stock was sold at an average price of $129.37, for a total transaction of $8,538,420.00. Following the completion of the sale, the director owned 279,868 shares in the company, valued at $36,206,523.16. This represents a 19.08% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 4,985,047 shares of company stock valued at $482,893,185 in the last quarter. Insiders own 12.92% of the company's stock.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its position in shares of Roblox by 2.6% in the second quarter. Vanguard Group Inc. now owns 59,153,925 shares of the company's stock valued at $6,222,993,000 after acquiring an additional 1,513,608 shares in the last quarter. Ieq Capital LLC lifted its position in shares of Roblox by 13.8% in the first quarter. Ieq Capital LLC now owns 18,889,973 shares of the company's stock valued at $1,101,097,000 after acquiring an additional 2,297,350 shares in the last quarter. State Street Corp lifted its position in shares of Roblox by 6.3% in the second quarter. State Street Corp now owns 12,043,269 shares of the company's stock valued at $1,266,952,000 after acquiring an additional 708,838 shares in the last quarter. Geode Capital Management LLC lifted its position in shares of Roblox by 9.1% in the second quarter. Geode Capital Management LLC now owns 10,039,983 shares of the company's stock valued at $1,053,257,000 after acquiring an additional 834,230 shares in the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of Roblox by 3.0% in the second quarter. AQR Capital Management LLC now owns 9,032,411 shares of the company's stock valued at $948,222,000 after acquiring an additional 261,984 shares in the last quarter. 94.46% of the stock is currently 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.