Roblox's (RBLX) "Outperform" Rating Reaffirmed at Wedbush

Key Points

• Roblox has received an "outperform" rating from Wedbush with a price target of $165.00, reflecting a potential upside of 23.59% from its previous close.
• The company's stock opened at $133.50, with a 12-month high of $150.59 and a market cap of $86.11 billion.
• Roblox reported quarterly earnings of ($0.41) per share, missing estimates, even as its revenue grew by 50.5% year-over-year to $1.44 billion.

Roblox (NYSE:RBLX - Get Free Report)'s stock had its "outperform" rating reaffirmed by equities research analysts at Wedbush in a report issued on Thursday,RTT News reports. They currently have a $165.00 price objective on the stock. Wedbush's target price would indicate a potential upside of 29.13% from the stock's current price.

Other research analysts have also recently issued reports about the company. Raymond James Financial cut Roblox from a "strong-buy" rating to an "outperform" rating and lifted their price target for the company from $81.00 to $130.00 in a research report on Wednesday, July 23rd. Barclays lifted their price target on Roblox from $62.00 to $120.00 and gave the company an "equal weight" rating in a research report on Friday, August 1st. Morgan Stanley lifted their price target on Roblox from $76.00 to $170.00 and gave the company an "overweight" rating in a research report on Friday, August 1st. Wolfe Research upgraded Roblox from a "peer perform" rating to an "outperform" rating and set a $150.00 price target for the company in a research report on Friday, August 22nd. Finally, BTIG Research set a $131.00 price target on Roblox and gave the company a "buy" rating in a research report on Monday, July 28th. Twenty research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $119.00.

Roblox Stock Performance

Shares of RBLX stock traded down $2.01 during mid-day trading on Thursday, reaching $127.78. The stock had a trading volume of 6,940,123 shares, compared to its average volume of 8,730,606. The business's fifty day moving average is $120.00 and its 200-day moving average is $88.73. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.94. The firm has a market cap of $82.42 billion, a price-to-earnings ratio of -89.35 and a beta of 1.62. Roblox has a 1-year low of $37.50 and a 1-year high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last announced 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). The company had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.20 billion. Roblox had a negative net margin of 23.67% and a negative return on equity of 372.96%. The firm's revenue was up 50.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.32) earnings per share. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, research analysts forecast that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Anthony P. Lee sold 66,000 shares of Roblox stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $122.74, for a total value of $8,100,840.00. Following the sale, the director directly owned 275,248 shares of the company's stock, valued at $33,783,939.52. The trade was a 19.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Amy Marie Rawlings sold 6,567 shares of Roblox stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $117.71, for a total value of $773,001.57. Following the completion of the sale, the chief accounting officer directly owned 46,866 shares in the company, valued at $5,516,596.86. This represents a 12.29% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,047,908 shares of company stock valued at $215,580,184 in the last 90 days. Corporate insiders own 12.92% of the company's stock.

Institutional Trading of Roblox

A number of institutional investors have recently made changes to their positions in RBLX. AQR Capital Management LLC boosted its stake in shares of Roblox by 217.4% in the first quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company's stock worth $504,387,000 after acquiring an additional 6,007,322 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Roblox by 8.3% in the first quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock worth $3,359,854,000 after acquiring an additional 4,400,624 shares during the last quarter. Norges Bank acquired a new stake in shares of Roblox in the second quarter worth approximately $350,720,000. Ninety One UK Ltd acquired a new stake in shares of Roblox in the first quarter worth approximately $137,379,000. Finally, Whale Rock Capital Management LLC boosted its stake in shares of Roblox by 95.8% in the fourth quarter. Whale Rock Capital Management LLC now owns 4,755,213 shares of the company's stock worth $275,137,000 after acquiring an additional 2,326,588 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.