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

Roblox Corporation (NYSE:RBLX) fell 12.9% 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. 21,395,573 shares were traded during trading, an increase of 65% from the average session volume of 12,968,320 shares. The stock had previously closed at $75.73.

RBLX has been the topic of several other research reports. Oppenheimer reissued an “outperform” rating and issued a $150.00 target price on shares of Roblox in a research note on Friday, October 31st. BTIG Research reduced their price objective on shares of Roblox from $174.00 to $141.00 and set a “buy” rating on the stock in a research report on Wednesday. BMO Capital Markets raised their price target on Roblox from $150.00 to $160.00 and gave the stock an “outperform” rating in a research note on Thursday, October 2nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Roblox in a research report on Monday, December 29th. Finally, Barclays increased their target price 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 investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Roblox currently has a consensus rating of “Moderate Buy” and a consensus price target of $131.65.

Insider Transactions at Roblox

In other Roblox news, Director Anthony P. Lee sold 7,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $82.45, for a total value of $577,150.00. Following the sale, the director owned 256,768 shares in the company, valued at approximately $21,170,521.60. This represents a 2.65% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Mark Reinstra sold 16,782 shares of the firm’s stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total value of $1,598,317.68. Following the completion of the sale, the insider directly owned 370,532 shares in the company, valued at approximately $35,289,467.68. The trade was a 4.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 504,300 shares of company stock valued at $46,290,436. 12.92% of the stock is owned by corporate insiders.

Trending Headlines about Roblox

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: JPMorgan called Roblox’s stabilization in user engagement “encouraging,” which supports the argument that core metrics may be bottoming and could limit further downside if confirmed by upcoming results. Read More.
• Positive Sentiment: Market commentary noted Roblox could soon snap a multi-session losing streak and some analysts/publications argue the pullback makes the shares more attractive for long-term investors, which can attract opportunistic buying into any stabilization. Read More.
• Neutral Sentiment: Wedbush cut its price target from $165 to $110 but kept an “outperform” rating — a materially lower target that signals reduced upside expectations even while the firm remains constructive. This is a mixed signal for investors: bullish tone but tempered valuation. Read More.
• Neutral Sentiment: Analysts covering the stock expect a decline in earnings in the upcoming report and highlight that Roblox lacks the two key ingredients typically needed for an earnings beat; results that miss could increase near-term volatility. Read More.
• Neutral Sentiment: Reminders that Roblox is scheduled to report/has upcoming earnings keep the focus on near-term execution and guidance as a primary catalyst for the stock. Expect volatility around the print. Read More.
• Negative Sentiment: Barron’s reported Google’s Project Genie — a tool to create fully rendered 3D worlds and characters — has hit gaming and metaverse-related stocks, including Roblox, as investors fear intensified competition and margin pressure from a deep-pocketed new entrant. Read More.
• Negative Sentiment: The Netherlands’ consumer regulator (ACM) has opened a probe into Roblox over risks to minors, focusing on exposure to harmful content and child protection — a regulatory investigation that could lead to fines, required product changes, or reputational damage in EU markets. Read More. Read More.

Institutional Inflows and Outflows

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

Roblox Trading Down 12.8%

The business’s fifty day moving average price is $84.46 and its 200 day moving average price is $110.15. The firm has a market capitalization of $43.23 billion, a PE ratio of -46.17 and a beta of 1.64. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.54.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, October 30th. The company reported ($0.37) EPS for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.07. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the previous year, the firm posted ($0.37) earnings per share. The firm’s quarterly revenue was up 70.3% on a year-over-year basis. As a group, analysts expect that Roblox Corporation will post -1.49 EPS 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.