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

Key Points

• Roblox's stock received an "outperform" rating from Wedbush, with a price target of $165.00, suggesting a potential upside of 40.43% from the last closing price.
• Analysts from various firms like Wells Fargo and JPMorgan have raised their price targets for Roblox, indicating a positive sentiment with a consensus rating of "Moderate Buy."
• Roblox reported a revenue of $1.44 billion in its latest quarter, significantly exceeding estimates, despite posting a loss of ($0.41) EPS.

Roblox (NYSE:RBLX - Get Free Report)'s stock had its "outperform" rating reaffirmed by stock analysts at Wedbush in a research note issued to investors on Monday,RTT News reports. They currently have a $165.00 price objective on the stock. Wedbush's target price indicates a potential upside of 40.43% from the stock's previous close.

Several other analysts have also recently commented on the company. Wells Fargo & Company raised their price target on Roblox from $116.00 to $153.00 and gave the company an "overweight" rating in a report on Friday, August 1st. JPMorgan Chase & Co. lifted their price objective on Roblox from $120.00 to $125.00 and gave the stock an "overweight" rating in a report on Wednesday, July 16th. Roth Mkm lifted their price objective on Roblox from $72.00 to $74.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. The Goldman Sachs Group lifted their price objective on Roblox from $63.00 to $80.00 and gave the stock a "neutral" rating in a report on Wednesday, May 14th. Finally, Barclays lifted their price objective on Roblox from $62.00 to $120.00 and gave the stock an "equal weight" rating in a report on Friday, August 1st. Twenty investment analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $119.00.

Roblox Stock Up 2.3%

RBLX opened at $117.4930 on Monday. 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 business has a 50 day simple moving average of $115.24 and a 200-day simple moving average of $84.61. The stock has a market capitalization of $75.79 billion, a P/E ratio of -82.16 and a beta of 1.63. Roblox has a 12 month low of $37.50 and a 12 month high of $150.59.

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). The business 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 firm's quarterly revenue was up 50.5% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.32) earnings per share. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Arvind Chakravarthy sold 20,552 shares of the company's stock in a transaction on Wednesday, August 20th. The stock was 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. This represents a 7.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David Baszucki sold 875 shares of the company's stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $126.72, for a total value of $110,880.00. Following the completion of the sale, the chief executive officer owned 211,559 shares in the company, valued at $26,808,756.48. This represents a 0.41% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 4,985,047 shares of company stock valued at $482,893,185. 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. Advisory Services Network LLC purchased a new stake in shares of Roblox in the second quarter valued at $375,000. State of Wyoming purchased a new position in Roblox during the second quarter worth about $1,966,000. Pitcairn Co. lifted its position in Roblox by 20.1% during the second quarter. Pitcairn Co. now owns 7,818 shares of the company's stock worth $822,000 after buying an additional 1,309 shares during the period. Geneos Wealth Management Inc. lifted its position in Roblox by 164.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,196 shares of the company's stock worth $126,000 after buying an additional 743 shares during the period. Finally, Caxton Associates LLP purchased a new position in Roblox during the second quarter worth about $1,414,000. 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.

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