Roblox (NYSE:RBLX) Shares Down 12.9% Following Analyst Downgrade

Roblox Corporation (NYSE:RBLX) was down 12.9% during trading on Friday after Wedbush lowered their price target on the stock from $165.00 to $110.00. Wedbush currently has an outperform rating on the stock. Roblox traded as low as $65.53 and last traded at $65.9640. Approximately 21,395,573 shares traded hands during trading, an increase of 65% from the average daily volume of 12,968,320 shares. The stock had previously closed at $75.73.

Several other equities research analysts also recently issued reports on RBLX. Raymond James Financial restated an “outperform” rating and set a $165.00 price objective (up from $155.00) on shares of Roblox in a research report on Tuesday, October 14th. Oppenheimer reissued an “outperform” rating and set a $150.00 price target on shares of Roblox in a report on Friday, October 31st. BMO Capital Markets upped their price objective on Roblox from $150.00 to $160.00 and gave the company an “outperform” rating in a report on Thursday, October 2nd. Wells Fargo & Company lowered their price objective on Roblox from $141.00 to $107.00 and set an “overweight” rating on the stock in a research report on Thursday, January 8th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a report on Monday, December 29th. Seventeen investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, Roblox currently has a consensus rating of “Moderate Buy” and an average target price of $131.65.

Insider Buying and Selling

In related news, insider Matthew D. Kaufman sold 20,867 shares of the business’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $96.10, for a total value of $2,005,318.70. Following the completion of the transaction, the insider owned 239,775 shares of the company’s stock, valued at $23,042,377.50. The trade was a 8.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Naveen K. Chopra sold 19,424 shares of the stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,849,747.52. Following the sale, the chief financial officer owned 337,036 shares in the company, valued at $32,095,938.28. The trade was a 5.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 504,300 shares of company stock valued at $46,290,436 in the last ninety days. Insiders own 12.92% of the company’s stock.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: JPMorgan flagged that Roblox’s recent stabilization in engagement trends is “encouraging,” which could support revenue visibility if usage holds steady and monetization improves. JPMorgan: Stabilization Encouraging
• Neutral Sentiment: Upcoming earnings are a near‑term catalyst: analysts expect a year‑over‑year decline in EPS and the company is due to report, so results and guidance could swing sentiment. Monitor bookings, engagement metrics and margin commentary. Analysts Expect Earnings Decline
• Neutral Sentiment: Debt and valuation context: the company carries leverage and a negative trailing P/E; some investors view recent pullbacks as a buying opportunity if engagement and monetization signals improve. Coverage pieces are debating attractiveness after the pullback. Is Roblox Still Attractive?
• Negative Sentiment: Google’s new Project Genie, which aims to let users create fully rendered 3D worlds and controllable characters, rattled gaming and creator-platform stocks today and put downward pressure on Roblox shares as investors reassess competitive risk. Google’s Project Genie Hammers Gaming Stocks
• Negative Sentiment: The Netherlands’ consumer regulator (ACM) opened a probe into Roblox over potential risks to minors and exposure to harmful content in the EU; regulatory investigations raise the prospect of fines, imposed compliance costs, or feature restrictions that could hit engagement and monetization. Dutch regulator to probe Roblox
• Negative Sentiment: Wedbush trimmed its price target from $165 to $110 (while keeping an outperform rating), a reduction that can weaken sentiment and reprice expectations even though the new target still implies upside from current levels. Wedbush Lowers Price Target

Institutional Investors Weigh In On Roblox

A number of large investors have recently modified their holdings of the business. WPG Advisers LLC lifted its position in shares of Roblox by 17.8% during the 3rd quarter. WPG Advisers LLC now owns 555 shares of the company’s stock worth $77,000 after buying an additional 84 shares during the last quarter. Baird Financial Group Inc. lifted its holdings in shares of Roblox by 1.4% in the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after acquiring an additional 102 shares during the last quarter. Sunbelt Securities Inc. boosted its stake in shares of Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after purchasing an additional 105 shares in the last quarter. Lido Advisors LLC grew its holdings in shares of Roblox by 1.3% during the 2nd quarter. Lido Advisors LLC now owns 8,529 shares of the company’s stock valued at $897,000 after purchasing an additional 106 shares during the last quarter. Finally, Brown Brothers Harriman & Co. increased its position in Roblox by 2.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock worth $560,000 after purchasing an additional 110 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox Stock Performance

The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The firm has a market cap of $42.91 billion, a P/E ratio of -45.83 and a beta of 1.64. The company’s 50 day moving average is $83.98 and its 200 day moving average is $109.81.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, October 30th. The company reported ($0.37) EPS for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.07. The company had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.Roblox’s revenue was up 70.3% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.37) EPS. As a group, equities analysts predict that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

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.