Morgan Stanley Cuts Roblox (NYSE:RBLX) Price Target to $155.00

Roblox (NYSE:RBLX) had its target price lowered by Morgan Stanley from $170.00 to $155.00 in a report published on Tuesday morning, Marketbeat Ratings reports. The brokerage currently has an overweight rating on the stock.

Several other analysts have also issued reports on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a research report on Monday, December 29th. Benchmark reissued a “hold” rating on shares of Roblox in a research report on Friday, October 31st. Macquarie upped their price objective on Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a research note on Tuesday, November 4th. Wolfe Research set a $100.00 target price on Roblox in a research report on Monday, January 5th. Finally, The Goldman Sachs Group raised Roblox from a “neutral” rating to a “buy” rating and boosted their price target for the company from $155.00 to $180.00 in a report on Friday, October 31st. Seventeen analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $133.65.

Roblox Stock Up 2.4%

Roblox stock opened at $84.83 on Tuesday. Roblox has a one year low of $50.10 and a one year high of $150.59. The stock has a fifty day moving average of $89.29 and a 200 day moving average of $112.02. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market cap of $55.55 billion, a PE ratio of -59.32 and a beta of 1.64.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.07. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same period last year, the firm posted ($0.37) earnings per share. The business’s revenue for the quarter was up 70.3% on a year-over-year basis. As a group, sell-side analysts predict that Roblox will post -1.49 EPS for the current year.

Insider Buying and Selling at Roblox

In related news, insider Mark Reinstra sold 16,782 shares of the stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $95.24, for a total transaction of $1,598,317.68. Following the completion of the sale, the insider owned 370,532 shares in the company, valued at approximately $35,289,467.68. This trade represents a 4.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO David Baszucki sold 66,896 shares of Roblox stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $76.48, for a total value of $5,116,206.08. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 504,300 shares of company stock valued at $46,290,436. 12.92% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roblox

Institutional investors have recently added to or reduced their stakes in the stock. WPG Advisers LLC lifted its holdings in shares of Roblox by 17.8% in the third quarter. WPG Advisers LLC now owns 555 shares of the company’s stock worth $77,000 after buying an additional 84 shares in the last quarter. Baird Financial Group Inc. increased its holdings in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after acquiring an additional 102 shares during the last quarter. Sunbelt Securities Inc. lifted its stake in Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after purchasing an additional 105 shares in the last quarter. Lido Advisors LLC boosted its holdings in shares of Roblox by 1.3% during the 2nd quarter. Lido Advisors LLC now owns 8,529 shares of the company’s stock valued at $897,000 after purchasing an additional 106 shares during the last quarter. Finally, Brown Brothers Harriman & Co. grew its position in shares of Roblox by 2.8% during the third quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after purchasing an additional 110 shares in the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Options-driven rally and heavy call buying lifted sentiment — large call-volume on Jan. 13 drew momentum buyers and helped spark the recent sharp uptick in the share price. Why Is Roblox Stock Surging?
• Positive Sentiment: Content-led growth narrative: Morgan Stanley and coverage highlighting breakout hits (example: “Brainrots”) reinforce the view that platform hits can drive bookings and long‑term monetization — a fundamental positive for investor conviction. Kids Are Competing for ‘Brainrots’ on Roblox. What It Says About the Stock.
• Positive Sentiment: AI tailwind: analysis argues Roblox is deploying AI to boost creator productivity, discovery and platform efficiency — if effective, these features can lengthen the company’s revenue runway by increasing creator output and monetization per user. Can AI-Driven Creation & Discovery Extend Roblox’s Revenue Runway?
• Neutral Sentiment: Positioning into earnings: several outlets note investors bought ahead of FY25 results — this can amplify moves in either direction near the print, so volatility is likely to remain elevated. Roblox Climbs 10.5% Ahead of FY25 Earnings
• Neutral Sentiment: Mixed analyst moves: some firms trimmed targets while keeping positive stances — supportive for the long term but moderates near‑term upside expectations. MarketBeat RBLX coverage
• Negative Sentiment: Insider selling: Director Anthony P. Lee sold 7,000 shares (~$82.45 avg) on Jan. 13 — a small percentage of his overall holding but a short‑term negative signal for some traders. Roblox Director Sells $577,150.00 in Stock
• Negative Sentiment: Other notable sell: Rep. Gilbert Ray Cisneros, Jr. reported sales of RBLX shares — additional reported insider/insider-related sells add short-term pressure to the stock’s sentiment mix. Rep. Gilbert Ray Cisneros, Jr. Sells Off Shares
• Negative Sentiment: Short-term pullback/mean reversion: commentary and data show the stock is retracing after a steep run, indicating profit‑taking that can exceed broader market weakness on days like today. Roblox Sees a More Significant Dip Than Broader Market

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.