Roblox (NYSE:RBLX) Upgraded to Strong-Buy at Freedom Capital

Roblox (NYSE:RBLX) was upgraded by Freedom Capital from a “hold” rating to a “strong-buy” rating in a research report issued on Friday,Zacks.com reports.

Several other equities analysts have also weighed in on RBLX. Wells Fargo & Company cut their target price on Roblox from $141.00 to $107.00 and set an “overweight” rating on the stock in a research note on Thursday, January 8th. Canaccord Genuity Group lowered their price target on Roblox from $160.00 to $140.00 and set a “buy” rating for the company in a research note on Tuesday. Raymond James Financial reissued an “outperform” rating and set a $165.00 price objective (up previously from $155.00) on shares of Roblox in a research note on Tuesday, October 14th. Wedbush restated an “outperform” rating and set a $110.00 price objective on shares of Roblox in a report on Friday. Finally, Roth Mkm reaffirmed a “neutral” rating and issued a $146.00 target price on shares of Roblox in a research note on Friday, October 17th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $123.76.

Roblox Price Performance

Shares of RBLX stock opened at $66.59 on Friday. The firm’s 50 day moving average price is $81.19 and its two-hundred day moving average price is $107.88. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59. The stock has a market cap of $43.61 billion, a PE ratio of -42.96 and a beta of 1.63.

Roblox (NYSE:RBLX) last issued its 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 net margin of 21.78% and a negative return on equity of 311.88%. The company had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $2.08 billion. During the same quarter in the previous year, the company posted ($0.33) EPS. The business’s revenue for the quarter was up 122.6% compared to the same quarter last year. As a group, analysts forecast that Roblox will post -1.49 EPS for the current year.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 66,896 shares of the business’s stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $76.48, for a total value of $5,116,206.08. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Anthony P. Lee sold 66,000 shares of the company’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $92.54, for a total transaction of $6,107,640.00. Following the completion of the transaction, the director directly owned 261,388 shares of the company’s stock, valued at approximately $24,188,845.52. The trade was a 20.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 423,899 shares of company stock valued at $37,883,851. 12.92% of the stock is currently owned by insiders.

Institutional Trading of Roblox

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

More Roblox News

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

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.