Roblox Corporation (NYSE:RBLX) Receives $60.89 Consensus Target Price from Analysts

Roblox Corporation (NYSE:RBLX) has been assigned an average recommendation of “Hold” from the thirty-one brokerages that are presently covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, fifteen have assigned a hold recommendation, twelve have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $59.2143.

A number of analysts recently commented on the company. Wolfe Research cut Roblox from an “outperform” rating to a “hold” rating in a research report on Friday, July 31st. Morgan Stanley decreased their price target on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating on the stock in a research note on Friday, July 31st. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a report on Wednesday, June 24th. Jefferies Financial Group reissued a “hold” rating and issued a $38.00 price objective on shares of Roblox in a research report on Wednesday. Finally, Moffett Nathanson reissued a “neutral” rating and set a $40.00 price objective on shares of Roblox in a research note on Monday, August 3rd.

Insider Buying and Selling

In other news, insider Mark Reinstra sold 17,934 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $680,774.64. Following the sale, the insider owned 398,064 shares in the company, valued at $15,110,509.44. This trade represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 17,509 shares of Roblox stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $664,641.64. Following the completion of the sale, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. This represents a 4.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 185,236 shares of company stock worth $7,538,642 in the last three months. 10.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roblox

Several large investors have recently added to or reduced their stakes in the business. Baird Financial Group Inc. raised its stake in shares of Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after acquiring an additional 102 shares in the last quarter. Sunbelt Securities Inc. lifted its holdings in Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after purchasing an additional 105 shares during the last quarter. Brown Brothers Harriman & Co. boosted its position in Roblox by 2.8% during the third quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock worth $560,000 after purchasing an additional 110 shares during the period. NewEdge Advisors LLC boosted its position in Roblox by 1.3% during the second quarter. NewEdge Advisors LLC now owns 10,374 shares of the company’s stock worth $1,091,000 after purchasing an additional 138 shares during the period. Finally, L2 Asset Management LLC grew its holdings in Roblox by 5.9% during the third quarter. L2 Asset Management LLC now owns 2,783 shares of the company’s stock valued at $386,000 after purchasing an additional 154 shares during the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox Trading Up 0.7%

Shares of RBLX stock opened at $44.84 on Tuesday. The stock has a market cap of $30.05 billion, a P/E ratio of -31.36 and a beta of 1.47. 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 fifty-two week low of $33.88 and a fifty-two week high of $142.00. The business has a fifty day simple moving average of $44.56 and a 200-day simple moving average of $50.21.

Roblox (NYSE:RBLX) last released its quarterly earnings data 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 net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the firm earned ($0.41) EPS. The business’s revenue for the quarter was up 8.3% compared to the same quarter last year. On average, analysts forecast that Roblox will post -1.39 earnings per share for the current fiscal year.

Roblox announced that its board has approved a stock buyback program on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.