Roblox (NYSE:RBLX) Upgraded by Arete to “Neutral” Rating

Arete upgraded shares of Roblox (NYSE:RBLX) from a sell rating to a neutral rating in a research note released on Tuesday morning, MarketBeat reports. Arete currently has $116.00 target price on the stock.

Several other equities analysts have also weighed in on RBLX. BTIG Research set a $131.00 target price on shares of Roblox and gave the company a “buy” rating in a report on Monday, July 28th. Citigroup boosted their target price on shares of Roblox from $123.00 to $152.00 and gave the company a “buy” rating in a report on Wednesday, July 23rd. BMO Capital Markets boosted their target price on shares of Roblox from $135.00 to $150.00 and gave the company an “outperform” rating in a report on Friday, August 1st. Morgan Stanley boosted their target price on shares of Roblox from $76.00 to $170.00 and gave the company an “overweight” rating in a report on Friday, August 1st. Finally, Cowen reiterated a “sell” rating on shares of Roblox in a report on Monday, August 18th. Twenty equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $123.16.

Roblox Stock Performance

NYSE:RBLX opened at $133.18 on Tuesday. The company’s 50-day moving average price is $122.30 and its 200-day moving average price is $90.47. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 2.94. The company has a market cap of $85.91 billion, a P/E ratio of -93.13 and a beta of 1.62. Roblox has a twelve month low of $37.50 and a twelve month high of $150.59.

Roblox (NYSE:RBLX) last posted its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.04). The business had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%.The business’s quarterly revenue was up 50.5% on a year-over-year basis. During the same period in the prior year, the business posted ($0.32) earnings per share. Roblox has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, sell-side analysts forecast that Roblox will post -1.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CAO Amy Marie Rawlings sold 6,567 shares of the business’s stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $117.71, for a total value of $773,001.57. Following the sale, the chief accounting officer directly owned 46,866 shares of the company’s stock, valued at approximately $5,516,596.86. The trade was a 12.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Matthew D. Kaufman sold 6,000 shares of the business’s stock in a transaction that occurred on Thursday, September 4th. The shares were sold at an average price of $134.20, for a total transaction of $805,200.00. Following the completion of the sale, the insider directly owned 275,015 shares in the company, valued at $36,907,013. This trade represents a 2.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,993,861 shares of company stock worth $210,622,673. Insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors and hedge funds have recently made changes to their positions in RBLX. Total Investment Management Inc. purchased a new stake in Roblox during the 2nd quarter worth approximately $29,000. Gordian Capital Singapore Pte Ltd increased its stake in Roblox by 74.8% during the 4th quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company’s stock worth $32,000 after buying an additional 240 shares during the period. ORG Partners LLC purchased a new stake in Roblox during the 2nd quarter worth approximately $33,000. Larson Financial Group LLC increased its stake in Roblox by 819.0% during the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company’s stock worth $34,000 after buying an additional 516 shares during the period. Finally, Whipplewood Advisors LLC purchased a new stake in Roblox during the 2nd quarter worth approximately $34,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.