Wedbush Reaffirms “Outperform” Rating for Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX)‘s stock had its “outperform” rating restated by research analysts at Wedbush in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $110.00 price target on the stock. Wedbush’s price objective points to a potential upside of 65.19% from the stock’s previous close.

A number of other equities research analysts also recently commented on RBLX. Macquarie Infrastructure lifted their target price on shares of Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 4th. Oppenheimer cut their price objective on Roblox from $150.00 to $130.00 and set an “outperform” rating for the company in a report on Friday. The Goldman Sachs Group raised Roblox from a “neutral” rating to a “buy” rating and increased their target price for the company from $155.00 to $180.00 in a report on Friday, October 31st. B. Riley Financial assumed coverage on Roblox in a research note on Tuesday, December 9th. They set a “buy” rating and a $125.00 price target for the company. Finally, JPMorgan Chase & Co. cut shares of Roblox from an “overweight” rating to a “neutral” rating and lowered their price objective for the stock from $145.00 to $100.00 in a research note on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Roblox currently has a consensus rating of “Moderate Buy” and a consensus target price of $123.76.

Roblox Trading Up 9.9%

Roblox stock opened at $66.59 on Friday. Roblox has a one year low of $50.10 and a one year high of $150.59. The business’s fifty day moving average is $81.19 and its 200 day moving average is $107.80. The stock has a market capitalization of $43.61 billion, a PE ratio of -42.96 and a beta of 1.63. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96.

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

Insider Transactions at Roblox

In other Roblox news, CFO Naveen K. Chopra sold 19,424 shares of the firm’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 transaction of $1,849,747.52. Following the sale, the chief financial officer owned 337,036 shares in the company, valued at approximately $32,095,938.28. This trade represents a 5.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Matthew D. Kaufman sold 20,867 shares of Roblox stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $96.10, for a total transaction of $2,005,318.70. Following the transaction, the insider directly owned 239,775 shares in the company, valued at $23,042,377.50. This represents a 8.01% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 423,899 shares of company stock valued at $37,883,851. Company insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently modified their holdings of RBLX. EverSource Wealth Advisors LLC boosted its holdings in Roblox by 10.9% in the 4th quarter. EverSource Wealth Advisors LLC now owns 11,785 shares of the company’s stock worth $955,000 after buying an additional 1,156 shares during the period. Steadview Capital Management LLC purchased a new position in shares of Roblox in the fourth quarter valued at about $12,884,000. Axxcess Wealth Management LLC boosted its stake in shares of Roblox by 151.5% in the fourth quarter. Axxcess Wealth Management LLC now owns 45,714 shares of the company’s stock worth $3,704,000 after acquiring an additional 27,535 shares during the period. Trajan Wealth LLC grew its position in shares of Roblox by 3.2% during the fourth quarter. Trajan Wealth LLC now owns 360,220 shares of the company’s stock worth $29,189,000 after purchasing an additional 11,326 shares in the last quarter. Finally, Fi3 FINANCIAL ADVISORS LLC raised its stake in Roblox by 7.4% during the 4th quarter. Fi3 FINANCIAL ADVISORS LLC now owns 5,582 shares of the company’s stock valued at $452,000 after purchasing an additional 385 shares during the period. 94.46% of the stock is currently owned by institutional investors.

Roblox News Roundup

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.