Roblox (NYSE:RBLX) Raised to “Hold” at Wall Street Zen

Roblox (NYSE:RBLX) was upgraded by analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued on Saturday.

A number of other research analysts also recently weighed in on RBLX. HSBC downgraded Roblox from a “buy” rating to a “hold” rating and set a $46.00 price target on the stock. in a research note on Friday, May 1st. Jefferies Financial Group cut Roblox from a “hold” rating to a “hold” rating in a research note on Friday, May 1st. Needham & Company LLC started coverage on Roblox in a report on Monday, June 29th. They set a “buy” rating for the company. Seaport Research Partners lowered Roblox to a “neutral” rating in a research report on Monday, June 29th. Finally, DA Davidson cut their target price on Roblox from $47.50 to $45.00 and set a “neutral” rating on the stock in a report on Friday, May 22nd. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $85.48.

Roblox Trading Up 0.1%

RBLX opened at $51.71 on Friday. Roblox has a 1-year low of $40.15 and a 1-year high of $150.59. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a market cap of $34.73 billion, a P/E ratio of -32.73 and a beta of 1.41. The company has a fifty day moving average price of $48.48 and a two-hundred day moving average price of $58.90.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.41) by $0.06. The firm 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%. The business’s quarterly revenue was up 43.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.32) earnings per share. Analysts predict that Roblox will post -1.39 EPS for the current fiscal year.

Roblox declared that its Board of Directors has authorized a stock buyback plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Roblox news, insider Matthew D. Kaufman sold 14,356 shares of Roblox 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 transaction, the insider owned 349,964 shares in the company, valued at approximately $15,842,870.28. The trade was a 3.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 the business’s stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 852,214 shares of the company’s stock, valued at $38,588,249.92. This 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. Insiders have sold 161,983 shares of company stock worth $7,580,990 in the last 90 days. Company insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Cypress Wealth Services LLC purchased a new position in Roblox during the fourth quarter worth about $2,373,000. Yarbrough Capital LLC grew its position in Roblox by 1,514.5% in the 4th 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. Glynn Capital Management LLC purchased a new stake in Roblox in the 4th quarter valued at about $5,706,000. Engineers Gate Manager LP increased its stake in Roblox by 97.0% in the 4th quarter. Engineers Gate Manager LP now owns 293,744 shares of the company’s stock valued at $23,802,000 after buying an additional 144,600 shares during the last quarter. Finally, Steadview Capital Management LLC bought a new position in shares of Roblox during the 4th quarter worth approximately $12,884,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

More 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

About Roblox

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.