Roblox (NYSE:RBLX) Shares Gap Up on Analyst Upgrade

Key Points

• Roblox Corporation shares gapped up from $117.52 to $123.22 following an upgrade from Wolfe Research to an "outperform" rating, with a new price target of $150.00.
• Multiple research firms have increased their price targets on Roblox, with Canaccord Genuity raising theirs to $160.00 and Benchmark to $150.00, indicating strong institutional support for the stock.
• Roblox reported mixed quarterly earnings, with a revenue of $1.44 billion but an EPS loss of ($0.41), missing the consensus estimate of ($0.37).

Roblox Corporation (NYSE:RBLX - Get Free Report) shares gapped up before the market opened on Monday after Wolfe Research upgraded the stock from a peer perform rating to an outperform rating. The stock had previously closed at $117.52, but opened at $123.22. Wolfe Research now has a $150.00 price target on the stock. Roblox shares last traded at $126.82, with a volume of 5,539,098 shares changing hands.

Several other research firms also recently issued reports on RBLX. Canaccord Genuity Group upped their price objective on shares of Roblox from $125.00 to $160.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Roth Mkm increased their price target on shares of Roblox from $72.00 to $74.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Benchmark increased their price target on shares of Roblox from $77.00 to $150.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Wells Fargo & Company increased their price target on shares of Roblox from $116.00 to $153.00 and gave the stock an "overweight" rating in a report on Friday, August 1st. Finally, Wedbush increased their price target on shares of Roblox from $142.00 to $165.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Twenty investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $119.00.

Insider Transactions at Roblox

In related news, insider Matthew D. Kaufman sold 6,000 shares of Roblox stock in a transaction on Thursday, August 7th. The shares were sold at an average price of $133.67, for a total value of $802,020.00. Following the sale, the insider owned 301,223 shares of the company's stock, valued at approximately $40,264,478.41. This trade represents a 1.95% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Anthony P. Lee sold 66,000 shares of Roblox stock in a transaction on Tuesday, August 5th. The shares were 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 directly owned 279,868 shares in the company, valued at $36,206,523.16. This represents a 19.08% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 4,985,047 shares of company stock worth $482,893,185 in the last ninety days. Company insiders own 12.92% of the company's stock.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Whipplewood Advisors LLC acquired a new stake in Roblox during the 2nd quarter worth $34,000. ORG Partners LLC purchased a new position in shares of Roblox during the 2nd quarter worth $33,000. Generali Asset Management SPA SGR purchased a new position in shares of Roblox during the 2nd quarter worth $40,000. Kiker Wealth Management LLC raised its holdings in shares of Roblox by 2,646.7% during the 2nd quarter. Kiker Wealth Management LLC now owns 412 shares of the company's stock worth $43,000 after acquiring an additional 397 shares during the period. Finally, Twin Peaks Wealth Advisors LLC purchased a new position in shares of Roblox during the 2nd quarter worth $44,000. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Stock Performance

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 fifty day moving average price of $115.24 and a 200 day moving average price of $84.61. The firm has a market cap of $81.91 billion, a PE ratio of -88.75 and a beta of 1.63.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) EPS 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 in the prior year, the firm earned ($0.32) EPS. The firm's revenue was up 50.5% on a year-over-year basis. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, equities research analysts expect that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

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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