Roblox (NYSE:RBLX) Upgraded at Freedom Capital

Freedom Capital upgraded shares of Roblox (NYSE:RBLX) from a hold rating to a strong-buy rating in a research report released on Friday,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. UBS Group set a $74.00 price target on shares of Roblox in a report on Friday. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a research note on Monday, December 29th. Wells Fargo & Company lowered their target price on Roblox from $141.00 to $107.00 and set an “overweight” rating for the company in a report on Thursday, January 8th. Piper Sandler reaffirmed an “overweight” rating and set a $100.00 target price (down previously from $125.00) on shares of Roblox in a research report on Friday. Finally, The Goldman Sachs Group set a $140.00 price target on Roblox in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $123.76.

Roblox Stock Up 9.9%

RBLX opened at $66.59 on Friday. Roblox has a 1-year low of $50.10 and a 1-year high of $150.59. The company has a market capitalization of $43.61 billion, a PE ratio of -42.96 and a beta of 1.63. The firm’s 50 day simple moving average is $81.19 and its two-hundred day simple moving average is $107.72. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, beating the consensus estimate of ($0.49) by $0.04. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $2.08 billion. During the same quarter last year, the firm posted ($0.33) earnings per share. The business’s revenue for the quarter was up 122.6% on a year-over-year basis. As a group, equities analysts forecast that Roblox will post -1.49 EPS for the current year.

Insider Buying and Selling at Roblox

In other Roblox news, Director Anthony P. Lee sold 66,000 shares of the firm’s stock in a transaction on Monday, December 1st. The shares were sold at an average price of $92.54, for a total value of $6,107,640.00. Following the completion of the transaction, the director owned 261,388 shares of the company’s stock, valued at approximately $24,188,845.52. This trade represents a 20.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Naveen K. Chopra sold 19,424 shares of the business’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $95.23, for a total transaction of $1,849,747.52. Following the sale, the chief financial officer directly owned 337,036 shares in the company, valued at $32,095,938.28. This trade represents a 5.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 423,899 shares of company stock worth $37,883,851 in the last three months. 12.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roblox

Institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in Roblox by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company’s stock valued at $5,142,065,000 after acquiring an additional 1,020,786 shares in the last quarter. State Street Corp boosted its position in Roblox by 11.0% in the 3rd quarter. State Street Corp now owns 13,369,844 shares of the company’s stock worth $1,851,991,000 after purchasing an additional 1,326,575 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Roblox by 9.1% during the 2nd quarter. Geode Capital Management LLC now owns 10,039,983 shares of the company’s stock worth $1,053,257,000 after purchasing an additional 834,230 shares during the period. AQR Capital Management LLC increased its holdings in shares of Roblox by 7.4% during the 3rd quarter. AQR Capital Management LLC now owns 9,697,538 shares of the company’s stock valued at $1,310,719,000 after purchasing an additional 665,127 shares in the last quarter. Finally, Franklin Resources Inc. increased its holdings in shares of Roblox by 9.8% during the 3rd quarter. Franklin Resources Inc. now owns 6,963,693 shares of the company’s stock valued at $964,611,000 after purchasing an additional 619,048 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

Key Headlines Impacting Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Strong Q4 engagement and bookings — Bookings rose sharply and daily active users and engaged hours topped Street expectations, a core reason shares rallied after the print. Barron’s: Roblox Reports Huge Surge in Bookings, Users, Engagement
• Positive Sentiment: Guidance upside — Management gave first-quarter and full‑year bookings/revenue targets that were above consensus, reinforcing growth expectations and fueling the post‑earnings rally. CNBC: Roblox shares rocket 20% on earnings beat, strong forecast
• Positive Sentiment: Management narrative on product and AI — CEO Dave Baszucki emphasized AI tools that enable creator-driven content and ongoing focus on community/safety, supporting the long‑term monetization story. YouTube: Roblox earnings: CEO talks gaming, AI, and user growth
• Neutral Sentiment: Coverage mostly bullish but mixed — Several firms reaffirmed positive ratings and high price targets (e.g., BTIG, Wedbush), reflecting confidence in the growth outlook even after recent volatility. Benzinga: Analyst notes
• Neutral Sentiment: Market reaction centered on user metrics more than GAAP profitability — reporters and analysts are highlighting DAU/bookings growth as the primary driver rather than near‑term EPS. WSJ: Roblox Posts Higher Revenue as Bookings, Daily Active Users Rise
• Negative Sentiment: Analyst downgrades / lower targets — Some shops cut price targets or trimmed expectations (JPMorgan cut its target to $75 and moved to neutral), which could cap upside if momentum fades. Benzinga: JPMorgan price target cut
• Negative Sentiment: Company still unprofitable — Roblox reported a GAAP loss (improved vs. prior year) and negative margins, a reminder that growth is not yet translating into sustained profitability. MarketBeat: Q4 results and transcript

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.