Wedbush Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its price target lowered by equities researchers at Wedbush from $165.00 to $110.00 in a research report issued on Friday, Marketbeat.com reports. The firm currently has an “outperform” rating on the stock. Wedbush’s price objective points to a potential upside of 67.86% from the stock’s previous close.

RBLX has been the subject of several other reports. Morgan Stanley reduced their target price on Roblox from $170.00 to $155.00 and set an “overweight” rating for the company in a research note on Tuesday, January 13th. Canaccord Genuity Group set a $160.00 price target on shares of Roblox in a report on Thursday, October 30th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research note on Monday, December 29th. Barclays raised their price objective on shares of Roblox from $120.00 to $130.00 and gave the stock an “equal weight” rating in a report on Friday, October 31st. Finally, Roth Mkm restated a “neutral” rating and issued a $146.00 target price on shares of Roblox in a research note on Friday, October 17th. Seventeen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $131.65.

Roblox Stock Down 13.5%

Shares of Roblox stock opened at $65.53 on Friday. Roblox has a 1-year low of $50.10 and a 1-year high of $150.59. The company has a market capitalization of $42.91 billion, a PE ratio of -45.83 and a beta of 1.64. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. The business has a 50-day moving average of $83.98 and a 200-day moving average of $109.81.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, October 30th. The company reported ($0.37) 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 quarter in the previous year, the firm posted ($0.37) earnings per share. The company’s revenue was up 70.3% compared to the same quarter last year. As a group, equities analysts forecast that Roblox will post -1.49 EPS for the current fiscal year.

Insider Transactions at Roblox

In related news, insider Matthew D. Kaufman sold 20,867 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $96.10, for a total value of $2,005,318.70. Following the sale, the insider owned 239,775 shares of the company’s stock, valued at approximately $23,042,377.50. This trade represents a 8.01% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Naveen K. Chopra sold 19,424 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $95.23, for a total value of $1,849,747.52. Following the transaction, the chief financial officer owned 337,036 shares of the company’s stock, valued at $32,095,938.28. This represents a 5.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 504,300 shares of company stock valued at $46,290,436 over the last ninety days. Insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several large investors have recently added to or reduced their stakes in RBLX. Reyes Financial Architecture Inc. grew its position in shares of Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the last quarter. Pilgrim Partners Asia Pte Ltd bought a new stake in Roblox in the 3rd quarter valued at about $26,000. Total Investment Management Inc. bought a new position in Roblox in the 2nd quarter worth about $29,000. Indiana Trust & Investment Management Co bought a new position in Roblox in the 4th quarter worth about $32,000. Finally, Whipplewood Advisors LLC acquired a new stake in shares of Roblox in the second quarter valued at approximately $34,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: JPMorgan flagged that Roblox’s recent stabilization in engagement trends is “encouraging,” which could support revenue visibility if usage holds steady and monetization improves. JPMorgan: Stabilization Encouraging
• Neutral Sentiment: Upcoming earnings are a near‑term catalyst: analysts expect a year‑over‑year decline in EPS and the company is due to report, so results and guidance could swing sentiment. Monitor bookings, engagement metrics and margin commentary. Analysts Expect Earnings Decline
• Neutral Sentiment: Debt and valuation context: the company carries leverage and a negative trailing P/E; some investors view recent pullbacks as a buying opportunity if engagement and monetization signals improve. Coverage pieces are debating attractiveness after the pullback. Is Roblox Still Attractive?
• Negative Sentiment: Google’s new Project Genie, which aims to let users create fully rendered 3D worlds and controllable characters, rattled gaming and creator-platform stocks today and put downward pressure on Roblox shares as investors reassess competitive risk. Google’s Project Genie Hammers Gaming Stocks
• Negative Sentiment: The Netherlands’ consumer regulator (ACM) opened a probe into Roblox over potential risks to minors and exposure to harmful content in the EU; regulatory investigations raise the prospect of fines, imposed compliance costs, or feature restrictions that could hit engagement and monetization. Dutch regulator to probe Roblox
• Negative Sentiment: Wedbush trimmed its price target from $165 to $110 (while keeping an outperform rating), a reduction that can weaken sentiment and reprice expectations even though the new target still implies upside from current levels. Wedbush Lowers Price Target

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.