Roblox (NYSE:RBLX) Trading Up 8.4% Following Analyst Upgrade

Roblox Corporation (NYSE:RBLX)’s share price shot up 8.4% during trading on Monday after Roth Mkm upgraded the stock from a neutral rating to a buy rating. Roth Mkm now has a $84.00 price target on the stock, up from their previous price target of $78.00. Roblox traded as high as $72.88 and last traded at $72.0050. 4,074,460 shares changed hands during trading, a decline of 71% from the average session volume of 14,282,514 shares. The stock had previously closed at $66.42.

RBLX has been the topic of a number of other research reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a report on Monday, December 29th. Macquarie Infrastructure boosted their price objective on shares of Roblox from $158.00 to $164.00 and gave the company an “outperform” rating in a research note on Tuesday, November 4th. Oppenheimer cut their price objective on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating for the company in a research report on Friday. Benchmark reaffirmed a “hold” rating on shares of Roblox in a report on Monday, February 2nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $120.88.

Insider Activity at Roblox

In related news, Director Anthony P. Lee sold 66,000 shares of Roblox stock in a transaction on Monday, December 1st. The stock was sold at an average price of $92.54, for a total value of $6,107,640.00. Following the transaction, the director owned 261,388 shares in the company, valued at approximately $24,188,845.52. This trade represents a 20.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Naveen K. Chopra sold 19,424 shares of the stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,849,747.52. Following the sale, the chief financial officer directly owned 337,036 shares of the company’s stock, valued at approximately $32,095,938.28. This trade represents a 5.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 423,899 shares of company stock valued at $37,883,851 over the last 90 days. 12.92% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roblox

A number of institutional investors have recently made changes to their positions in the business. Pilgrim Partners Asia Pte Ltd bought a new position in shares of Roblox during the third quarter worth about $26,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in Roblox during the third quarter valued at approximately $37,000. Total Investment Management Inc. bought a new position in Roblox during the 2nd quarter worth approximately $29,000. Root Financial Partners LLC bought a new stake in shares of Roblox in the 3rd quarter valued at approximately $38,000. Finally, Sunbelt Securities Inc. raised its holdings in shares of Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after purchasing an additional 105 shares during the period. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Stock Performance

The company has a market capitalization of $47.20 billion, a price-to-earnings ratio of -46.38 and a beta of 1.63. The stock has a 50 day simple moving average of $81.19 and a 200 day simple moving average of $107.72. 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 released its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, topping 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 business had revenue of $1.42 billion during the quarter, compared to analyst estimates of $2.08 billion. During the same quarter in the prior year, the firm earned ($0.33) earnings per share. The company’s quarterly revenue was up 122.6% on a year-over-year basis. As a group, analysts anticipate that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

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.