Roblox’s (RBLX) “Outperform” Rating Reiterated at Wedbush

Wedbush reaffirmed their outperform rating on shares of Roblox (NYSE:RBLX) in a research note issued to investors on Thursday,RTT News reports. Wedbush currently has a $165.00 price target on the stock.

RBLX has been the subject of several other research reports. Piper Sandler raised their target price on Roblox from $105.00 to $138.00 and gave the stock an “overweight” rating in a research note on Thursday, July 24th. Cowen restated a “sell” rating on shares of Roblox in a research report on Monday, August 18th. Barclays raised their price target on Roblox from $62.00 to $120.00 and gave the stock an “equal weight” rating in a research report on Friday, August 1st. BTIG Research set a $131.00 price target on Roblox and gave the stock a “buy” rating in a research report on Monday, July 28th. Finally, JPMorgan Chase & Co. raised their price target on Roblox from $120.00 to $125.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 16th. Twenty research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $119.00.

Roblox Price Performance

RBLX stock opened at $127.78 on Thursday. The business has a fifty day moving average of $120.00 and a two-hundred day moving average of $88.73. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 2.94. The stock has a market cap of $82.42 billion, a price-to-earnings ratio of -89.35 and a beta of 1.62. Roblox has a 52-week low of $37.50 and a 52-week high of $150.59.

Roblox (NYSE:RBLX) last posted its 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). The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%.Roblox’s revenue was up 50.5% compared to the same quarter last year. During the same period last year, the business earned ($0.32) EPS. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, research analysts anticipate that Roblox will post -1.49 earnings per share for the current year.

Insider Activity at Roblox

In related news, CEO David Baszucki sold 454,963 shares of Roblox stock in a transaction on Tuesday, June 17th. The stock was sold at an average price of $100.61, for a total value of $45,773,827.43. Following the completion of the transaction, the chief executive officer directly owned 211,559 shares in the company, valued at approximately $21,284,950.99. This trade represents a 68.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Anthony P. Lee sold 111,112 shares of Roblox stock in a transaction on Friday, August 1st. The shares were sold at an average price of $131.01, for a total value of $14,556,783.12. The disclosure for this sale can be found here. Over the last three months, insiders sold 2,047,908 shares of company stock worth $215,580,184. Company insiders own 12.92% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. AQR Capital Management LLC lifted its holdings in Roblox by 217.4% during the 1st quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company’s stock worth $504,387,000 after buying an additional 6,007,322 shares during 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 worth $3,359,854,000 after buying an additional 4,400,624 shares during the last quarter. Norges Bank purchased a new stake in Roblox during the 2nd quarter worth about $350,720,000. Ninety One UK Ltd purchased a new stake in Roblox during the 1st quarter worth about $137,379,000. Finally, Whale Rock Capital Management LLC lifted its holdings in Roblox by 95.8% during the 4th quarter. Whale Rock Capital Management LLC now owns 4,755,213 shares of the company’s stock worth $275,137,000 after buying an additional 2,326,588 shares during the last quarter. 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.