BTIG Research Downgrades Roblox (NYSE:RBLX) to Neutral

Roblox (NYSE:RBLX) was downgraded by investment analysts at BTIG Research from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Friday.

Other equities research analysts also recently issued research reports about the company. Wells Fargo & Company reduced their price target on Roblox from $97.00 to $78.00 and set an “overweight” rating on the stock in a research report on Monday, April 6th. Freedom Capital raised Roblox from a “hold” rating to a “strong-buy” rating in a report on Friday, February 6th. Jefferies Financial Group set a $85.00 target price on Roblox in a research report on Thursday, January 15th. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating in a research report on Friday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Roblox in a research note on Friday, March 27th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $108.24.

Roblox Stock Down 1.5%

RBLX opened at $55.43 on Friday. Roblox has a fifty-two week low of $51.23 and a fifty-two week high of $150.59. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96. The company has a market capitalization of $37.07 billion, a P/E ratio of -35.76 and a beta of 1.67. The stock has a fifty day moving average of $59.46 and a 200-day moving average of $80.23.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. Roblox’s revenue for the quarter was up 43.4% compared to the same quarter last year. During the same period last year, the firm earned ($0.32) earnings per share. On average, equities analysts expect that Roblox will post -1.6 EPS for the current year.

Insiders Place Their Bets

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the transaction, the director owned 1,302,834 shares in the company, valued at $75,499,230.30. The trade was a 1.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Arvind Chakravarthy sold 40,646 shares of the business’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total value of $2,732,630.58. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 551,996 shares of company stock valued at $38,421,146 over the last ninety days. 12.92% of the stock is owned by insiders.

Institutional Trading of Roblox

A number of hedge funds have recently added to or reduced their stakes in RBLX. NewEdge Advisors LLC increased its holdings in shares of Roblox by 2.3% during the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock worth $597,000 after buying an additional 231 shares in the last quarter. Sivia Capital Partners LLC grew its position in Roblox by 70.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock worth $1,368,000 after acquiring an additional 5,363 shares during the last quarter. CW Advisors LLC acquired a new position in Roblox in the 2nd quarter worth about $272,000. Baird Financial Group Inc. raised its position in Roblox by 1.4% in the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after purchasing an additional 102 shares during the last quarter. Finally, WINTON GROUP Ltd bought a new position in Roblox in the second quarter valued at about $438,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Q1 results showed improvement vs. last year: Roblox posted a smaller-than-expected loss and revenue was up substantially year-over-year, underscoring continued platform scale. Roblox (RBLX) Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: Regulatory/compliance activity: Roblox said it is implementing control measures to comply with Indonesia’s social media rules for users under 16 — this is operationally relevant but not an immediate earnings surprise. Roblox announces control measures to comply with Indonesia’s social media curb
• Neutral Sentiment: Full earnings call transcript and slides are available for deeper read-through of management’s explanation of user trends, safety investments and margin outlook. Review the call for color on timing of user?recovery assumptions. Roblox Corporation (RBLX) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Guidance cut: management sharply trimmed annual bookings/revenue expectations and lowered Q2 revenue guidance, citing the impact of new safety features and age verification that have reduced user communication and slowed new-user growth — the primary driver of the selloff. Roblox slashes annual bookings forecast as new safety features take their toll
• Negative Sentiment: Market reaction and analyst concerns: media and markets coverage notes the reduced outlook is below Street expectations and flagged slower user monetization, which prompted a sharp intraday/after?hours decline in the stock. Roblox Cuts Outlook as Safety Efforts Weigh on First-Quarter Results
• Negative Sentiment: Reputational/legal risk: a media report about an alleged safety failure and a lawsuit was published, which could add regulatory, litigation or PR pressure for the company. Roblox allowed predator to pay Uber driver $1K to abduct teen girl who was sexually assaulted, locked in a room: lawsuit

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.