Roblox (NYSE:RBLX) Lowered to “Hold” Rating by HSBC

HSBC downgraded shares of Roblox (NYSE:RBLX) from a buy rating to a hold rating in a report released on Friday morning, Marketbeat Ratings reports. They currently have $46.00 price objective on the stock.

Other research analysts have also issued reports about the company. Barclays decreased their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday. DA Davidson started coverage on Roblox in a report on Wednesday, March 4th. They issued a “neutral” rating and a $65.00 target price for the company. UBS Group set a $74.00 target price on Roblox in a report on Friday, February 6th. Bank of America lowered Roblox from a “buy” rating to a “neutral” rating and set a $48.00 target price for the company. in a report on Friday. Finally, TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and decreased their target price for the company from $54.00 to $49.00 in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $90.46.

Roblox Stock Down 18.3%

NYSE:RBLX traded down $10.11 during midday trading on Friday, reaching $45.15. The company had a trading volume of 53,314,250 shares, compared to its average volume of 8,542,216. The firm has a market capitalization of $30.19 billion, a price-to-earnings ratio of -29.13 and a beta of 1.50. The stock’s fifty day simple moving average is $59.46 and its 200-day simple moving average is $80.23. Roblox has a 12-month low of $41.75 and a 12-month high of $150.59. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative return on equity of 285.88% and a negative net margin of 20.69%.Roblox’s revenue was up 43.4% compared to the same quarter last year. During the same period last year, the business posted ($0.32) earnings per share. On average, sell-side analysts anticipate that Roblox will post -1.6 earnings per share for the current fiscal year.

Insider Activity at Roblox

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total transaction of $965,794.70. Following the completion of the sale, the director directly owned 1,302,834 shares of the company’s stock, valued at $75,499,230.30. The trade was a 1.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 13,325 shares of Roblox stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $57.94, for a total value of $772,050.50. Following the sale, the insider directly owned 364,320 shares of the company’s stock, valued at $21,108,700.80. This trade represents a 3.53% 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. Insiders sold 551,996 shares of company stock worth $38,421,146 over the last three months. Company insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

A number of institutional investors have recently bought and sold shares of the business. National Pension Service increased its position in shares of Roblox by 7.3% during the third quarter. National Pension Service now owns 1,697,820 shares of the company’s stock worth $235,182,000 after purchasing an additional 115,096 shares in the last quarter. SG Americas Securities LLC increased its position in shares of Roblox by 298.4% during the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company’s stock worth $45,617,000 after purchasing an additional 246,652 shares in the last quarter. Yarbrough Capital LLC increased its position in shares of Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock worth $4,646,000 after purchasing an additional 53,780 shares in the last quarter. Cypress Wealth Services LLC acquired a new stake in shares of Roblox during the fourth quarter worth about $2,373,000. Finally, Tokio Marine Asset Management Co. Ltd. acquired a new stake in shares of Roblox during the third quarter worth about $2,895,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Needham & Company started coverage with a Buy and a $60 price target (largest bullish analyst call among peers), which offers upside relative to recent levels. Needham Coverage
• Neutral Sentiment: TD Cowen moved RBLX from Sell to Hold with a $49 target (small upside vs. current price), a modestly constructive tone compared with broader downgrades. TD Cowen Update
• Neutral Sentiment: UBS and DA Davidson cut price targets (UBS to $49, DA Davidson to $47.50) and set Neutral ratings — these trims signal lower investor expectation but still imply small upside from the current level. UBS/DA Davidson Notes TickerReport
• Negative Sentiment: The core driver: Roblox cut FY26 revenue/bookings guidance and lowered Q2 revenue expectations, citing that new child‑safety measures (age verification and discovery algorithm changes) are reducing sign‑ups and in‑game spending — this guidance cut is the primary reason the shares are under pressure. Reuters: Bookings Forecast CNBC: Safety Measures
• Negative Sentiment: Major sell‑side revisions: Bank of America slashed its target from $165 to $48 and downgraded to Neutral — a highly negative, high‑profile reset that likely amplified selling. 247WallSt: BofA Cut
• Negative Sentiment: Legal/ shareholder pressure: law firms (Block & Leviton, Ademi LLP) have opened investigations into possible securities‑fraud or disclosure issues tied to guidance and safety disclosures, adding regulatory and litigation risk. GlobeNewsWire: Investigation PR Newswire: Ademi LLP

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.