Roblox’s (RBLX) Outperform Rating Reiterated at Wedbush

Wedbush reissued their outperform rating on shares of Roblox (NYSE:RBLX) in a report issued on Friday morning,RTT News reports. They currently have a $83.00 target price on the stock. Wedbush also issued estimates for Roblox’s Q1 2025 earnings at ($0.43) EPS, Q2 2025 earnings at ($0.28) EPS, Q3 2025 earnings at ($0.39) EPS, Q4 2025 earnings at ($0.54) EPS, FY2025 earnings at ($1.65) EPS and FY2026 earnings at ($1.61) EPS.

A number of other research analysts have also issued reports on the company. Needham & Company LLC lifted their target price on Roblox from $60.00 to $72.00 and gave the company a “buy” rating in a report on Friday. HSBC initiated coverage on Roblox in a research note on Thursday, December 12th. They issued a “buy” rating and a $63.00 price objective for the company. CICC Research started coverage on shares of Roblox in a report on Tuesday, January 14th. They issued an “outperform” rating on the stock. Macquarie boosted their price target on shares of Roblox from $71.00 to $76.00 and gave the stock an “outperform” rating in a report on Friday. Finally, JPMorgan Chase & Co. raised their price objective on shares of Roblox from $62.00 to $72.00 and gave the company an “overweight” rating in a report on Friday, January 10th. One research analyst has rated the stock with a sell rating, six have given a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat, Roblox has an average rating of “Moderate Buy” and an average target price of $64.19.

Roblox Price Performance

RBLX stock opened at $66.41 on Friday. Roblox has a 52-week low of $29.55 and a 52-week high of $75.74. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64. The stock has a market cap of $40.34 billion, a price-to-earnings ratio of -45.80 and a beta of 1.46. The business has a fifty day moving average of $62.47 and a two-hundred day moving average of $50.76.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share for the quarter, beating the consensus estimate of ($0.46) by $0.13. Roblox had a negative net margin of 25.97% and a negative return on equity of 795.19%. As a group, research analysts anticipate that Roblox will post -1.4 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Michael Guthrie sold 40,000 shares of Roblox stock in a transaction that occurred on Friday, November 15th. The stock was sold at an average price of $52.07, for a total value of $2,082,800.00. Following the sale, the chief financial officer now directly owns 352,844 shares in the company, valued at $18,372,587.08. The trade was a 10.18 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO David Baszucki sold 138,555 shares of the stock in a transaction on Thursday, January 30th. The stock was sold at an average price of $71.62, for a total value of $9,923,309.10. Following the completion of the transaction, the chief executive officer now owns 129,301 shares of the company’s stock, valued at $9,260,537.62. The trade was a 51.73 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,306,335 shares of company stock valued at $77,348,316 over the last ninety days. Corporate insiders own 22.15% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. FMR LLC boosted its holdings in Roblox by 24.5% during the third quarter. FMR LLC now owns 20,942,691 shares of the company’s stock worth $926,924,000 after buying an additional 4,115,286 shares in the last quarter. Wealthfront Advisers LLC lifted its position in shares of Roblox by 74,400.8% during the 4th quarter. Wealthfront Advisers LLC now owns 17,335,594 shares of the company’s stock valued at $1,063,365,000 after acquiring an additional 17,312,325 shares during the period. Ieq Capital LLC boosted its stake in shares of Roblox by 26.8% during the 4th quarter. Ieq Capital LLC now owns 16,592,623 shares of the company’s stock worth $960,049,000 after acquiring an additional 3,507,901 shares in the last quarter. State Street Corp grew its holdings in shares of Roblox by 2.3% in the 3rd quarter. State Street Corp now owns 10,855,890 shares of the company’s stock worth $480,482,000 after acquiring an additional 240,565 shares during the period. Finally, ValueAct Holdings L.P. increased its stake in Roblox by 340.7% in the 3rd quarter. ValueAct Holdings L.P. now owns 10,135,921 shares of the company’s stock valued at $448,616,000 after purchasing an additional 7,835,921 shares in the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

About Roblox

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.