Roblox’s (RBLX) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC reaffirmed their buy rating on shares of Roblox (NYSE:RBLX) in a research note issued to investors on Friday morning, MarketBeat reports. The firm currently has a $159.00 target price on the stock.

Several other analysts have also issued reports on RBLX. Piper Sandler reiterated an “overweight” rating on shares of Roblox in a research report on Friday, October 24th. JPMorgan Chase & Co. increased their price target on shares of Roblox from $150.00 to $160.00 and gave the stock an “overweight” rating in a research report on Monday, September 22nd. Wall Street Zen upgraded shares of Roblox from a “sell” rating to a “hold” rating in a research report on Saturday, October 18th. Oppenheimer reiterated an “outperform” rating and set a $150.00 price target on shares of Roblox in a research report on Friday. Finally, Morgan Stanley set a $170.00 price objective on shares of Roblox and gave the company an “overweight” rating in a research note on Monday, October 13th. Twenty-one investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $130.68.

Roblox Stock Performance

NYSE RBLX opened at $113.35 on Friday. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54. The firm has a market capitalization of $74.23 billion, a price-to-earnings ratio of -79.27 and a beta of 1.61. The firm’s 50 day simple moving average is $130.41 and its 200 day simple moving average is $109.70. Roblox has a 1 year low of $47.95 and a 1 year high of $150.59.

Roblox (NYSE:RBLX) last posted its quarterly 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. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.64 billion. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The firm’s revenue for the quarter was up 70.3% on a year-over-year basis. During the same quarter last year, the business posted ($0.37) EPS. Roblox has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. As a group, research analysts expect 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 firm’s stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $117.71, for a total transaction of $2,419,175.92. Following the completion of the transaction, the insider owned 242,469 shares of the company’s stock, valued at approximately $28,541,025.99. This trade represents a 7.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO David Baszucki sold 875 shares of the firm’s stock in a transaction on Tuesday, August 5th. The shares were sold at an average price of $126.72, for a total transaction of $110,880.00. Following the transaction, the chief executive officer directly owned 211,559 shares of the company’s stock, valued at $26,808,756.48. The trade was a 0.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 249,994 shares of company stock worth $32,176,737 over the last 90 days. Insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

Several large investors have recently modified their holdings of RBLX. AQR Capital Management LLC raised its stake in shares of Roblox by 217.4% during the first quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company’s stock valued at $504,387,000 after acquiring an additional 6,007,322 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Roblox by 8.3% during the first quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company’s stock valued at $3,359,854,000 after acquiring an additional 4,400,624 shares during the last quarter. Norges Bank bought a new position in shares of Roblox during the second quarter valued at $350,720,000. Ninety One UK Ltd bought a new position in shares of Roblox during the first quarter valued at $137,379,000. Finally, Ieq Capital LLC raised its stake in shares of Roblox by 13.8% during the first quarter. Ieq Capital LLC now owns 18,889,973 shares of the company’s stock valued at $1,101,097,000 after acquiring an additional 2,297,350 shares during the last quarter. Institutional investors own 94.46% of the company’s stock.

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.