Roblox Corporation (NYSE:RBLX) Receives Average Rating of “Moderate Buy” from Brokerages

Roblox Corporation (NYSE:RBLX) has earned an average rating of “Moderate Buy” from the thirty brokerages that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a sell recommendation, eleven have issued a hold recommendation, fifteen have assigned a buy recommendation and two have assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $85.4815.

Several research analysts have recently issued reports on the stock. TD Cowen upgraded shares of Roblox from a “sell” rating to a “hold” rating and dropped their price objective for the stock from $54.00 to $49.00 in a report on Friday, May 1st. Needham & Company LLC initiated coverage on shares of Roblox in a research note on Monday. They issued a “buy” rating for the company. BMO Capital Markets raised Roblox from an “outperform” rating to an “outperform” rating in a research report on Monday. Arete Research set a $95.00 price target on Roblox and gave the company a “buy” rating in a research note on Monday. Finally, Wolfe Research began coverage on Roblox in a report on Friday, May 1st. They issued an “outperform” rating for the company.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox partnered with TV analytics firm EDO to create TV-style ad benchmarks inside the platform, giving advertisers a clearer way to measure engagement and campaign outcomes. The move could improve Roblox’s long-term monetization story as it expands beyond gaming into branded experiences and digital advertising. Roblox (RBLX) Partners With EDO To Bring TV Style Ad Benchmarks In Game
• Positive Sentiment: Arete Research upgraded Roblox from hold to strong-buy and set a $95 price target, signaling confidence that the stock still has meaningful upside from current levels.
• Neutral Sentiment: A Schaeffer’s Research note pointed to a historically bullish technical signal, which may be supporting short-term trading interest but does not change the company’s fundamentals.
• Negative Sentiment: Multiple law firms announced or updated class-action deadlines against Roblox tied to allegations that investors were misled about the impact of age-verification changes and daily active user trends after the April 30 earnings report. These notices keep legal overhang in focus and may pressure sentiment. ROSEN, SKILLED INVESTOR COUNSEL, Encourages Roblox Corporation Investors to Secure Counsel Before Important Deadline in Securities Class Action – RBLX
• Negative Sentiment: News coverage also highlighted a watchdog report and lawsuit claims that the company’s ad systems may have exposed children to inappropriate products, adding reputational risk at a sensitive time for the platform.

Roblox Trading Up 6.6%

Shares of Roblox stock opened at $57.96 on Thursday. Roblox has a 1 year low of $40.15 and a 1 year high of $150.59. The company’s fifty day simple moving average is $47.85 and its 200-day simple moving average is $61.30. The company has a market cap of $38.93 billion, a price-to-earnings ratio of -36.68 and a beta of 1.41. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. During the same period in the prior year, the company earned ($0.32) EPS. The business’s quarterly revenue was up 43.4% compared to the same quarter last year. As a group, sell-side analysts expect that Roblox will post -1.4 EPS for the current year.

Roblox announced that its Board of Directors has authorized a stock buyback program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to buy up to 9.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Roblox

In related news, insider Sean Jack Buckley sold 4,744 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $46.36, for a total value of $219,931.84. Following the completion of the transaction, the insider directly owned 97,141 shares of the company’s stock, valued at $4,503,456.76. This trade represents a 4.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Amy Marie Rawlings sold 2,895 shares of Roblox stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.24, for a total transaction of $130,969.80. Following the sale, the chief accounting officer owned 35,238 shares in the company, valued at $1,594,167.12. This represents a 7.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 172,783 shares of company stock valued at $8,213,616 in the last quarter. 10.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Hedge funds have recently made changes to their positions in the business. Basecamp Wealth Advisors LLC lifted its holdings in shares of Roblox by 98.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after acquiring an additional 252 shares during the period. Militia Capital Management LLC bought a new stake in Roblox in the first quarter valued at about $2,590,000. Rathbones Group PLC increased its stake in Roblox by 302.2% in the first quarter. Rathbones Group PLC now owns 14,015 shares of the company’s stock valued at $793,000 after acquiring an additional 10,530 shares during the period. Parallel Advisors LLC increased its stake in Roblox by 9.5% in the first quarter. Parallel Advisors LLC now owns 31,160 shares of the company’s stock valued at $1,762,000 after acquiring an additional 2,691 shares during the period. Finally, Western Wealth Management LLC acquired a new position in Roblox in the first quarter worth about $33,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.