Roblox (NYSE:RBLX) Stock Rating Upgraded by Freedom Capital

Roblox (NYSE:RBLX) was upgraded by research analysts at Freedom Capital from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Friday,Zacks.com reports.

Other equities analysts have also recently issued research reports about the company. TD Cowen reiterated a “sell” rating on shares of Roblox in a report on Tuesday, January 27th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Roblox in a research note on Friday. Wolfe Research set a $100.00 price target on shares of Roblox in a research note on Monday, January 5th. JPMorgan Chase & Co. reduced their price objective on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research note on Friday. Finally, Piper Sandler reiterated an “overweight” rating and set a $100.00 target price (down previously from $125.00) on shares of Roblox in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $123.76.

Roblox Price Performance

RBLX opened at $66.59 on Friday. 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 stock has a market capitalization of $43.61 billion, a P/E ratio of -42.96 and a beta of 1.63. The company’s 50 day simple moving average is $81.19 and its 200-day simple moving average is $107.80. Roblox has a one year low of $50.10 and a one year high of $150.59.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.49) by $0.04. The firm had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The business’s revenue for the quarter was up 122.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.33) EPS. Sell-side analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Arvind Chakravarthy sold 20,912 shares of the firm’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,991,449.76. Following the sale, the insider owned 181,043 shares of the company’s stock, valued at $17,240,724.89. This trade represents a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, 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 transaction of $2,005,318.70. Following the sale, the insider owned 239,775 shares in the company, valued at $23,042,377.50. This trade represents a 8.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 423,899 shares of company stock valued at $37,883,851. Company insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

Institutional investors have recently added to or reduced their stakes in the company. Reyes Financial Architecture Inc. grew its holdings in 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 purchasing an additional 194 shares during the period. Pilgrim Partners Asia Pte Ltd bought a new stake in Roblox in the 3rd quarter valued at $26,000. Total Investment Management Inc. bought a new stake in shares of Roblox in the second quarter valued at about $29,000. Indiana Trust & Investment Management Co bought a new stake in Roblox in the 4th quarter valued at about $32,000. Finally, Whipplewood Advisors LLC bought a new stake in shares of Roblox in the second quarter valued at approximately $34,000. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Strong Q4 engagement and bookings — Bookings rose sharply and daily active users and engaged hours topped Street expectations, a core reason shares rallied after the print. Barron’s: Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Guidance upside — Management gave first-quarter and full‑year bookings/revenue targets that were above consensus, reinforcing growth expectations and fueling the post‑earnings rally. CNBC: Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Management narrative on product and AI — CEO Dave Baszucki emphasized AI tools that enable creator-driven content and ongoing focus on community/safety, supporting the long‑term monetization story. YouTube: Roblox earnings: CEO talks gaming, AI, and user growth
• Neutral Sentiment: Coverage mostly bullish but mixed — Several firms reaffirmed positive ratings and high price targets (e.g., BTIG, Wedbush), reflecting confidence in the growth outlook even after recent volatility. Benzinga: Analyst notes
• Neutral Sentiment: Market reaction centered on user metrics more than GAAP profitability — reporters and analysts are highlighting DAU/bookings growth as the primary driver rather than near‑term EPS. WSJ: Roblox Posts Higher Revenue as Bookings, Daily Active Users Rise
• Negative Sentiment: Analyst downgrades / lower targets — Some shops cut price targets or trimmed expectations (JPMorgan cut its target to $75 and moved to neutral), which could cap upside if momentum fades. Benzinga: JPMorgan price target cut
• Negative Sentiment: Company still unprofitable — Roblox reported a GAAP loss (improved vs. prior year) and negative margins, a reminder that growth is not yet translating into sustained profitability. MarketBeat: Q4 results and transcript

Roblox Company Profile

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.