Roblox (NYSE:RBLX) Stock Rating Upgraded by Wall Street Zen

Key Points

• Roblox's stock rating has been upgraded from "sell" to "hold" by Wall Street Zen, with several analysts boosting their price targets and maintaining positive ratings.
• Roblox recently reported a quarterly revenue of $1.44 billion, an increase of 50.5% year-over-year, although it missed earnings estimates with an EPS of ($0.41).
• Institutional investors have increased their stakes in Roblox, with AQR Capital Management boosting its position by 217.4% in the first quarter, indicating strong institutional interest.

Roblox (NYSE:RBLX - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a note issued to investors on Saturday.

A number of other equities analysts have also issued reports on RBLX. Canaccord Genuity Group boosted their target price on shares of Roblox from $125.00 to $160.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Barclays raised their price target on shares of Roblox from $62.00 to $120.00 and gave the stock an "equal weight" rating in a research report on Friday, August 1st. Raymond James Financial restated an "outperform" rating and set a $165.00 price objective (up previously from $155.00) on shares of Roblox in a report on Tuesday. Needham & Company LLC increased their target price on shares of Roblox from $79.00 to $159.00 and gave the company a "buy" rating in a research note on Friday, August 1st. Finally, Wedbush reissued an "outperform" rating and set a $165.00 target price on shares of Roblox in a research report on Thursday, September 4th. Twenty analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, Roblox has a consensus rating of "Moderate Buy" and a consensus target price of $129.22.

Roblox Trading Down 1.2%

Roblox stock opened at $132.81 on Friday. Roblox has a 52 week low of $39.30 and a 52 week high of $150.59. 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 capitalization of $85.67 billion, a PE ratio of -92.87 and a beta of 1.63. The business's 50-day simple moving average is $129.30 and its 200-day simple moving average is $103.67.

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 net margin of 23.67% and a negative return on equity of 372.96%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same period last year, the business earned ($0.32) EPS. 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. Equities research analysts forecast that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling at Roblox

In other Roblox news, Director Anthony P. Lee sold 111,112 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $131.01, for a total transaction of $14,556,783.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, insider Arvind Chakravarthy sold 20,552 shares of the company's stock in a transaction that occurred 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 completion of the sale, the insider owned 242,469 shares in the company, valued at approximately $28,541,025.99. This represents a 7.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 366,876 shares of company stock worth $47,485,929. 12.92% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC boosted its stake in shares of Roblox by 217.4% in the 1st quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company's stock valued at $504,387,000 after purchasing an additional 6,007,322 shares in the last quarter. Vanguard Group Inc. lifted its holdings in Roblox by 8.3% during the 1st quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock valued at $3,359,854,000 after purchasing an additional 4,400,624 shares during the last quarter. Norges Bank acquired a new position in Roblox in the second quarter valued at about $350,720,000. Ninety One UK Ltd bought a new stake in Roblox during the first quarter worth about $137,379,000. Finally, Ieq Capital LLC increased its holdings in shares of Roblox by 13.8% during the first quarter. Ieq Capital LLC now owns 18,889,973 shares of the company's stock worth $1,101,097,000 after buying an additional 2,297,350 shares in the last quarter. 94.46% of the stock is owned by 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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