Roblox (NYSE:RBLX) Price Target Lowered to $40.00 at TD Cowen

Roblox (NYSE:RBLX) had its price target cut by TD Cowen from $49.00 to $40.00 in a research report sent to investors on Friday,Benzinga reports. They currently have a hold rating on the stock.

RBLX has been the topic of several other research reports. Roth Capital set a $65.00 target price on shares of Roblox in a report on Tuesday, May 5th. Benchmark lowered shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price target for the company. in a report on Friday. Wedbush reissued a “neutral” rating and set a $40.00 price target (down from $65.00) on shares of Roblox in a research report on Friday. Jefferies Financial Group lowered shares of Roblox from a “hold” rating to a “hold” rating in a report on Friday, May 1st. Finally, Oppenheimer reissued an “outperform” rating on shares of Roblox in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $67.04.

Roblox Price Performance

RBLX opened at $35.66 on Friday. The stock’s 50 day simple moving average is $49.28 and its 200 day simple moving average is $56.93. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox has a 1 year low of $33.88 and a 1 year high of $150.59. The firm has a market cap of $23.95 billion, a price-to-earnings ratio of -24.94 and a beta of 1.41.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative return on equity of 243.73% and a negative net margin of 17.60%.The business had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the previous year, the firm earned ($0.41) EPS. The business’s quarterly revenue was up 8.3% on a year-over-year basis. As a group, analysts predict that Roblox will post -1.39 earnings per share for the current year.

Roblox declared that its board has initiated a stock buyback plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity at Roblox

In related news, insider Matthew D. Kaufman sold 14,356 shares of Roblox stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider owned 349,964 shares in the company, valued at $15,842,870.28. The trade was a 3.94% 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 sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total transaction of $749,470.02. Following the transaction, the director directly owned 1,294,501 shares in the company, valued at approximately $58,213,709.97. The trade was a 1.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 161,983 shares of company stock valued at $7,580,990 over the last 90 days. Company insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of the stock. Allspring Global Investments Holdings LLC raised its stake in Roblox by 379.8% in the first quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock worth $53,102,000 after buying an additional 729,379 shares in the last quarter. Glynn Capital Management LLC bought a new stake in Roblox during the 4th quarter valued at approximately $5,706,000. Militia Capital Management LLC purchased a new position in shares of Roblox during the 1st quarter worth approximately $2,590,000. Engineers Gate Manager LP grew its holdings in shares of Roblox by 97.0% during the 4th quarter. Engineers Gate Manager LP now owns 293,744 shares of the company’s stock worth $23,802,000 after acquiring an additional 144,600 shares during the period. Finally, Spyglass Capital Management LLC purchased a new position in shares of Roblox during the 1st quarter worth approximately $44,116,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox reported an adjusted second-quarter loss of $0.26 per share, narrower than the consensus loss estimate of approximately $0.33–$0.34. Revenue increased 8.3% year over year to $1.47 billion, although it was below the $1.60 billion analyst estimate. Roblox Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted continued investment in AI creation tools and efforts to expand Roblox’s gaming ecosystem, while daily active users grew 10% year over year. These initiatives could support longer-term engagement and monetization. Roblox Q2 Earnings Call Highlights AI Push and Monetization Reset
• Neutral Sentiment: TD Cowen cut its price target from $49 to $40 and moved to a Hold rating. Wedbush maintained Neutral but reduced its target from $65 to $40, indicating analysts see limited near-term upside while the outlook is reassessed. Roblox Analysts Slash Their Forecasts After Q2 Results
• Negative Sentiment: Roblox forecast third-quarter bookings of $1.58 billion to $1.65 billion, below Wall Street expectations, and projected revenue growth of only 4% to 10%. Investors were particularly concerned that changes to discovery and recommendation algorithms are reducing in-app spending. Roblox set for worst one-day drop as discovery changes hurt in-app spending
• Negative Sentiment: Stricter age-verification and safety measures are weighing on user onboarding and engagement, creating additional uncertainty around bookings and monetization despite ongoing user growth. The disappointing outlook prompted multiple analysts to issue Sell ratings or sharply lower forecasts. Roblox shares plummet on revenue miss, withdrawn guidance
• Negative Sentiment: Several law firms announced or promoted a securities class action covering investors who purchased Roblox shares from October 31, 2024, through April 30, 2026. The August 7, 2026 lead-plaintiff deadline adds legal and reputational risk, although the announcements themselves do not establish liability. RBLX Investor Alert

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.