Wedbush Cuts Roblox (NYSE:RBLX) Price Target to $110.00

Roblox (NYSE:RBLX) had its price target trimmed by Wedbush from $165.00 to $110.00 in a report released on Friday, MarketBeat.com reports. The firm currently has an outperform rating on the stock.

A number of other research analysts also recently commented on the company. Deutsche Bank Aktiengesellschaft set a $115.00 price target on Roblox in a report on Tuesday, January 20th. Canaccord Genuity Group set a $160.00 price objective on shares of Roblox in a research report on Thursday, October 30th. Oppenheimer reaffirmed an “outperform” rating and issued a $150.00 target price on shares of Roblox in a research report on Friday, October 31st. Macquarie boosted their price objective on Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 4th. Finally, Barclays boosted their price objective on Roblox from $120.00 to $130.00 and gave the stock an “equal weight” rating in a research note on Friday, October 31st. Seventeen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $131.65.

Roblox Stock Down 13.5%

Roblox stock opened at $65.53 on Friday. The stock has a 50 day moving average of $83.98 and a two-hundred day moving average of $109.74. Roblox has a twelve month low of $50.10 and a twelve month high of $150.59. The stock has a market capitalization of $42.91 billion, a price-to-earnings ratio of -45.83 and a beta of 1.63. 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 issued its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.07. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The business had revenue of $1.36 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same quarter in the previous year, the firm earned ($0.37) earnings per share. The business’s quarterly revenue was up 70.3% compared to the same quarter last year. As a group, research analysts expect that Roblox will post -1.49 earnings per share for the current year.

Insider Transactions at Roblox

In other news, CEO David Baszucki sold 66,896 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $104.53, for a total transaction of $6,992,638.88. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Naveen K. Chopra sold 19,424 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $95.23, for a total value of $1,849,747.52. Following the completion of the sale, the chief financial officer owned 337,036 shares of the company’s stock, valued at $32,095,938.28. This represents a 5.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 498,300 shares of company stock worth $45,612,496. Corporate insiders own 12.92% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of RBLX. Reyes Financial Architecture Inc. boosted its position in shares of Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after acquiring an additional 194 shares in the last quarter. Pilgrim Partners Asia Pte Ltd bought a new position in Roblox during the third quarter worth about $26,000. Total Investment Management Inc. acquired a new stake in Roblox during the second quarter valued at approximately $29,000. Indiana Trust & Investment Management Co bought a new stake in shares of Roblox in the 4th quarter valued at approximately $32,000. Finally, Whipplewood Advisors LLC bought a new stake in shares of Roblox in the 2nd quarter worth about $34,000. 94.46% of the stock is owned by institutional investors.

Roblox News Summary

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

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.