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

Shares of Roblox Corporation (NYSE:RBLX) 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 traded.

A number of other research analysts also recently weighed in on the company. JPMorgan Chase & Co. upped their price target on Roblox from $120.00 to $125.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 16th. Piper Sandler boosted their price objective on Roblox from $105.00 to $138.00 and gave the company an “overweight” rating in a report on Thursday, July 24th. BTIG Research set a $131.00 target price on Roblox and gave the stock a “buy” rating in a research report on Monday, July 28th. Bank of America lifted their price target on shares of Roblox from $86.00 to $103.00 and gave the company a “buy” rating in a research report on Thursday, June 5th. Finally, Morgan Stanley boosted their price target on shares of Roblox from $76.00 to $170.00 and gave the company an “overweight” rating in a research note on Friday, August 1st. Twenty research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $119.00.

Insider Activity at Roblox

In other news, CEO David Baszucki sold 687,500 shares of the company’s stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $87.97, for a total value of $60,479,375.00. Following the completion of the transaction, the chief executive officer directly owned 211,559 shares of the company’s stock, valued at $18,610,845.23. This represents a 76.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Over the last quarter, insiders have sold 4,935,047 shares of company stock worth $478,661,185. 12.92% of the stock is owned by company insiders.

Institutional Trading of Roblox

Hedge funds have recently bought and sold shares of the business. Gordian Capital Singapore Pte Ltd increased its position in shares of Roblox by 74.8% during the 4th quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company’s stock valued at $32,000 after purchasing an additional 240 shares during the last quarter. ORG Partners LLC bought a new position in Roblox during the second quarter valued at about $33,000. Larson Financial Group LLC increased its holdings in Roblox by 819.0% during the first quarter. Larson Financial Group LLC now owns 579 shares of the company’s stock worth $34,000 after buying an additional 516 shares during the last quarter. Whipplewood Advisors LLC bought a new stake in Roblox in the second quarter worth about $34,000. Finally, Thurston Springer Miller Herd & Titak Inc. bought a new stake in Roblox in the first quarter worth about $39,000. 94.46% of the stock is currently owned by institutional investors.

Roblox Trading Up 6.2%

The stock’s 50 day simple moving average is $115.73 and its two-hundred day simple moving average is $85.02. The stock has a market capitalization of $80.51 billion, a PE ratio of -87.28 and a beta of 1.63. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.97 and a quick ratio of 0.97.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share (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 previous year, the business earned ($0.32) EPS. The company’s revenue for the quarter was up 50.5% on a year-over-year basis. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, sell-side analysts expect that Roblox Corporation will post -1.49 EPS for the current year.

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.