Roblox Corporation (NYSE:RBLX) Given Average Recommendation of “Hold” by Brokerages

Shares of Roblox Corporation (NYSE:RBLX) have been assigned an average recommendation of “Hold” from the thirty-one analysts that are presently covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a sell recommendation, fifteen have given a hold recommendation, twelve have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $60.8929.

A number of equities analysts recently issued reports on the stock. UBS Group set a $33.00 target price on shares of Roblox in a research report on Friday, July 31st. Seaport Research Partners downgraded shares of Roblox to a “neutral” rating in a report on Monday, June 29th. Roth Capital set a $65.00 price target on shares of Roblox in a research report on Tuesday, May 5th. BMO Capital Markets downgraded shares of Roblox from an “outperform” rating to a “market perform” rating and set a $45.00 price objective on the stock. in a report on Friday, July 31st. Finally, Wolfe Research lowered shares of Roblox from an “outperform” rating to a “hold” rating in a research report on Friday, July 31st.

Roblox Price Performance

Shares of NYSE:RBLX opened at $38.52 on Friday. The company has a market cap of $25.81 billion, a price-to-earnings ratio of -26.94 and a beta of 1.46. The business has a 50 day moving average price of $47.21 and a 200 day moving average price of $52.77. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. Roblox has a twelve month low of $33.88 and a twelve month high of $142.00.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping the consensus estimate of ($0.34) by $0.08. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the previous year, the business posted ($0.41) EPS. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. Research analysts predict that Roblox will post -1.39 earnings per share for the current year.

Roblox announced that its board has authorized a share repurchase program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $37.46, for a total value of $624,308.36. Following the completion of the transaction, the director owned 1,269,502 shares of the company’s stock, valued at $47,555,544.92. This represents a 1.30% decrease in their position. 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 Mark Reinstra sold 6,250 shares of the firm’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $40.00, for a total value of $250,000.00. Following the completion of the sale, the insider owned 415,998 shares of the company’s stock, valued at $16,639,920. This represents a 1.48% decrease in their position. 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 50,346 shares of company stock worth $2,356,982 over the last 90 days. Corporate insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently bought and sold shares of RBLX. Sunbelt Securities Inc. lifted its holdings in shares of Roblox by 58.7% during 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. Horizon Investments LLC increased its stake in Roblox by 2,636.4% in the third quarter. Horizon Investments LLC now owns 301 shares of the company’s stock valued at $42,000 after acquiring an additional 290 shares during the period. Reyes Financial Architecture Inc. increased its stake in Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after acquiring an additional 194 shares during the period. Fideuram Asset Management Ireland dac acquired a new position in Roblox in the fourth quarter worth about $27,000. Finally, GW&K Investment Management LLC raised its position in Roblox by 76.3% in the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after purchasing an additional 161 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.