B. Riley Financial Cuts Roblox (NYSE:RBLX) Price Target to $45.00

Roblox (NYSE:RBLX) had its target price cut by B. Riley Financial from $80.00 to $45.00 in a research note issued to investors on Monday morning,Benzinga reports. They currently have a buy rating on the stock.

Several other equities research analysts have also recently weighed in on the company. UBS Group set a $33.00 target price on Roblox in a research note on Friday, July 31st. BTIG Research lowered shares of Roblox from a “neutral” rating to a “sell” rating and set a $30.00 price target on the stock. in a research note on Friday, July 31st. The Goldman Sachs Group cut their price objective on shares of Roblox from $125.00 to $65.00 and set a “buy” rating on the stock in a report on Friday, May 1st. Bank of America downgraded shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price objective for the company. in a research report on Friday, May 1st. Finally, Seaport Research Partners cut shares of Roblox to a “neutral” rating in a report on Monday, June 29th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Roblox currently has an average rating of “Hold” and a consensus price target of $60.89.

Roblox Stock Performance

NYSE:RBLX opened at $36.17 on Monday. Roblox has a 12 month low of $33.88 and a 12 month high of $142.00. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The firm has a market capitalization of $24.23 billion, a PE ratio of -25.29 and a beta of 1.46. The business’s fifty day moving average price is $48.68 and its 200 day moving average price is $55.79.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.Roblox’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period in the previous year, the business earned ($0.41) EPS. On average, sell-side analysts anticipate that Roblox will post -1.38 earnings per share for the current fiscal year.

Roblox declared that its board has initiated a share repurchase 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 stock through open market purchases. Stock buyback programs are often a sign that the company’s leadership believes its stock is undervalued.

Insider Activity at Roblox

In other news, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $57.69, for a total value of $961,461.54. Following the completion of the sale, the director directly owned 1,277,835 shares of the company’s stock, valued at approximately $73,718,301.15. This represents a 1.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 50,628 shares of the firm’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 transaction of $2,292,435.84. Following the transaction, the chief executive officer owned 852,214 shares in the company, valued at approximately $38,588,249.92. This trade 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 a total of 161,983 shares of company stock valued at $7,455,828 over the last 90 days. 10.05% of the stock is owned by insiders.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently bought and sold shares of RBLX. Reyes Financial Architecture Inc. increased its stake in Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after purchasing an additional 194 shares during the period. Hanson & Doremus Investment Management purchased a new stake in shares of Roblox in the first quarter valued at about $25,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Roblox during the fourth quarter worth about $27,000. Basecamp Wealth Advisors LLC boosted its stake in shares of Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after buying an additional 252 shares during the period. Finally, GW&K Investment Management LLC grew its holdings in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Despite the post-earnings decline, some analysts see substantial long-term upside, citing Roblox’s growing user base and the possibility that current pessimism already reflects much of the near-term risk. Roblox: Visibility Has Collapsed And That Is Exactly Why I Am Buying
• Positive Sentiment: Roblox beat quarterly EPS expectations, although revenue fell short of consensus; this provides a limited positive offset to concerns about the company’s outlook.
• Neutral Sentiment: Director Gregory Baszucki sold 16,666 shares for approximately $624,000 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced his direct holdings by 1.3%, but the planned nature of the sale and his remaining substantial ownership reduce its significance as a bearish signal. SEC Form 4 filing
• Neutral Sentiment: Market commentary remains divided: some investors view the selloff as a buying opportunity, while others question whether the company’s growth and monetization can reaccelerate.
• Negative Sentiment: Citigroup and B. Riley Financial lowered their expectations for Roblox’s stock, adding pressure after the earnings-related selloff. Citigroup forecast B. Riley forecast
• Negative Sentiment: Analysts and financial media highlighted troubling signals in Roblox’s post-earnings outlook, including reduced visibility and concerns that revenue growth is not keeping pace with expectations. Deutsche Bank downgrade coverage
• Negative Sentiment: Several law firms are promoting securities class-action claims tied to Roblox’s October 2024–April 2026 trading period, with an August 7 lead-plaintiff deadline. The notices increase headline and potential legal-risk concerns, although they do not establish wrongdoing. Faruqi class-action deadline notice

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.