Roblox (NYSE:RBLX) Upgraded to “Strong-Buy” at Wolfe Research

Wolfe Research upgraded shares of Roblox (NYSE:RBLX) from a hold rating to a strong-buy rating in a research note issued to investors on Friday morning,Zacks reports.

Several other brokerages have also recently commented on RBLX. Piper Sandler reiterated a “neutral” rating and set a $47.00 price target (down from $50.00) on shares of Roblox in a research report on Friday, July 31st. Bank of America boosted their price target on shares of Roblox from $44.00 to $48.00 and gave the stock a “neutral” rating in a research note on Monday, September 14th. JPMorgan Chase & Co. increased their price objective on shares of Roblox from $40.00 to $53.00 and gave the company a “neutral” rating in a report on Wednesday, October 14th. Oppenheimer reaffirmed an “outperform” rating and issued a $50.00 price objective (down from $82.00) on shares of Roblox in a research note on Friday, September 11th. Finally, Morgan Stanley lowered their target price on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, twelve have given a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $53.46.

Roblox Trading Down 18.0%

RBLX stock opened at $43.01 on Friday. The company has a market cap of $28.82 billion, a P/E ratio of -31.17 and a beta of 1.47. Roblox has a twelve month low of $33.88 and a twelve month high of $119.85. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The business has a fifty day moving average of $46.34 and a 200-day moving average of $52.69.

Roblox (NYSE:RBLX) last posted its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.43) by $0.11. The business had revenue of $1.57 billion for the quarter, compared to analysts’ expectations of $1.63 billion. Roblox had a negative return on equity of 303.93% and a negative net margin of 16.48%. The firm’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the business earned ($0.37) earnings per share. As a group, equities research analysts expect that Roblox will post -1.41 EPS for the current year.

Insider Activity

In other Roblox news, insider Mark Reinstra sold 17,934 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the sale, the insider directly owned 398,064 shares in the company, valued at approximately $15,110,509.44. This trade represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 17,509 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $664,641.64. Following the completion of the sale, the chief financial officer owned 363,249 shares in the company, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 186,390 shares of company stock valued at $7,283,371. 10.05% of the stock is currently owned by company insiders.

Institutional Trading of Roblox

A number of large investors have recently made changes to their positions in the company. Activest Wealth Management raised its position in Roblox by 72.9% in the 3rd quarter. Activest Wealth Management now owns 588 shares of the company’s stock valued at $25,000 after buying an additional 248 shares during the last quarter. Basecamp Wealth Advisors LLC lifted its stake in Roblox by 98.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after acquiring an additional 252 shares in the last quarter. Mather Group LLC. boosted its position in Roblox by 2,458.6% during the 3rd quarter. Mather Group LLC. now owns 742 shares of the company’s stock worth $31,000 after acquiring an additional 713 shares during the last quarter. Root Financial Partners LLC boosted its position in Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after acquiring an additional 283 shares during the last quarter. Finally, Pinnacle Wealth Planning Services Inc. boosted its position in Roblox by 234.7% during the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 753 shares of the company’s stock worth $32,000 after acquiring an additional 528 shares during the last quarter. Institutional investors own 94.46% of the company’s stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported a third-quarter loss of $0.32 per share, better than the $0.43 consensus estimate. Revenue increased 15.6% year over year to approximately $1.57 billion, while bookings also reportedly exceeded expectations. Roblox quarterly earnings report
• Positive Sentiment: Gross profit rose substantially year over year and the company generated $395 million in operating cash flow, although cash flow was below the prior-year period. These figures provide some support for the company’s longer-term financial position. Roblox third-quarter financial data
• Neutral Sentiment: Wedbush lowered its Roblox price target from $55 to $52 and changed its rating to “neutral.” The new target remains above the stock’s reference price, but the reduction signals less confidence in the pace of recovery. Wedbush Roblox price-target update
• Negative Sentiment: Average daily active users fell 9% year over year to 138 million, while engagement hours declined 15% to 34 billion. This was Roblox’s first reported year-over-year decline in daily users and raised concerns about slowing user engagement. Roblox user and engagement metrics
• Negative Sentiment: Soft fourth-quarter bookings guidance overshadowed the earnings beat, suggesting weaker holiday-period spending. Investors are also concerned that the expected release and popularity of GTA VI could compete for players’ time and gaming budgets. Roblox outlook and GTA VI article
• Negative Sentiment: Roblox remains unprofitable, reporting a net loss of approximately $227 million, while revenue came in below analyst expectations. The combination of declining engagement, continued losses and cautious guidance is driving the current selloff. Roblox earnings selloff analysis

Roblox Company Profile

Roblox Corporation operates Roblox, an online platform where users can create, publish, and participate in interactive digital experiences. The platform supports a broad range of user-generated content, including games, social spaces, entertainment, educational activities, and virtual events.

Roblox provides development tools through Roblox Studio, enabling creators and developers to design experiences and build virtual items and environments. Users can customize avatars, communicate with others, and access content across computers, mobile devices, consoles, and other supported platforms.