Roblox Corporation (NYSE:RBLX) Given Average Rating of “Moderate Buy” by Analysts

Shares of Roblox Corporation (NYSE:RBLX) have earned a consensus rating of “Moderate Buy” from the thirty analysts that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, eleven have assigned a hold recommendation, seventeen have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among analysts that have covered the stock in the last year is $85.4815.

A number of research firms have commented on RBLX. Piper Sandler lowered Roblox from an “overweight” rating to a “neutral” rating and reduced their price target for the company from $100.00 to $50.00 in a research report on Monday, May 4th. Wolfe Research assumed coverage on Roblox in a research report on Friday, May 1st. They set an “outperform” rating for the company. Wedbush lowered Roblox from a “hold” rating to a “neutral” rating in a research note on Friday, May 1st. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and reduced their target price for the company from $54.00 to $49.00 in a report on Friday, May 1st. Finally, Arete Research set a $95.00 target price on shares of Roblox and gave the stock a “buy” rating in a research note on Monday, June 29th.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox unveiled Build, a new AI-powered creation tool inside its mobile app that lets users describe a game idea in plain language and have AI generate a playable starting point. The feature could boost creator activity, engagement, and long-term platform growth. Article Title
• Positive Sentiment: Additional coverage from TechCrunch, Business Insider, and Yahoo Finance reinforced the same theme: Roblox is pushing deeper into AI-driven game creation, which may appeal to investors looking for new monetization and user-growth catalysts. Article Title
• Neutral Sentiment: Several law firms issued reminders about the August 7 lead-plaintiff deadline in the ongoing securities class action, and some notices said the alleged class period has been expanded. These updates add legal overhang but mostly repeat information already circulating in the market. Article Title
• Negative Sentiment: The securities-fraud lawsuit and related investor alerts likely pressured sentiment because they raise the risk of legal costs, management distraction, and potential reputational damage for Roblox. Article Title

Roblox Trading Up 0.1%

RBLX opened at $51.71 on Monday. The company’s 50 day moving average price is $48.48 and its two-hundred day moving average price is $58.90. The firm has a market capitalization of $34.73 billion, a price-to-earnings ratio of -32.73 and a beta of 1.41. Roblox has a fifty-two week low of $40.15 and a fifty-two week high of $150.59. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. Roblox’s revenue was up 43.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.32) earnings per share. As a group, research analysts predict that Roblox will post -1.39 earnings per share for the current year.

Roblox declared that its board has initiated a stock repurchase plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Roblox

In other Roblox news, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the completion of the sale, the insider directly owned 349,964 shares in the company, valued at approximately $15,842,870.28. This trade represents a 3.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 50,628 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $2,292,435.84. Following the completion of the transaction, the chief executive officer directly owned 852,214 shares of the company’s stock, valued at approximately $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 161,983 shares of company stock valued at $7,580,990. 10.05% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roblox

A number of hedge funds have recently added to or reduced their stakes in RBLX. Sunbelt Securities Inc. boosted its holdings in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after buying an additional 105 shares in the last quarter. Horizon Investments LLC increased its stake in shares of Roblox by 2,636.4% in the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company’s stock valued at $42,000 after acquiring an additional 290 shares in the last quarter. Reyes Financial Architecture Inc. increased its stake in shares of Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after acquiring an additional 194 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new position in shares of Roblox during the 4th quarter valued at $27,000. Finally, GW&K Investment Management LLC lifted its position in shares of Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after acquiring an additional 161 shares during the period. 94.46% of the stock is currently owned by institutional investors.

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.