Wedbush Raises Roblox (NYSE:RBLX) Price Target to $48.00

Roblox (NYSE:RBLX) had its target price hoisted by analysts at Wedbush from $40.00 to $48.00 in a report released on Monday, Benzinga reports. The brokerage presently has a “neutral” rating on the stock. Wedbush’s price objective indicates a potential upside of 5.24% from the company’s previous close.

Other analysts also recently issued reports about the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research report on Wednesday, June 24th. Needham & Company LLC decreased their price target on Roblox from $60.00 to $50.00 and set a “buy” rating on the stock in a research report on Friday, July 31st. Moffett Nathanson reaffirmed a “neutral” rating and set a $40.00 price objective on shares of Roblox in a research report on Monday, August 3rd. Arete Research set a $95.00 price objective on shares of Roblox and gave the stock a “buy” rating in a research report on Monday, June 29th. Finally, B. Riley Financial reduced their price objective on shares of Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, fourteen have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Roblox presently has a consensus rating of “Hold” and an average price target of $59.50.

Roblox Stock Up 0.2%

NYSE RBLX opened at $45.61 on Monday. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. The company has a market cap of $30.56 billion, a price-to-earnings ratio of -31.90 and a beta of 1.47. The company has a 50 day moving average of $44.37 and a 200-day moving average of $50.09. Roblox has a 1-year low of $33.88 and a 1-year high of $142.00.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the business posted ($0.41) earnings per share. The firm’s quarterly revenue was up 8.3% compared to the same quarter last year. On average, equities research analysts expect that Roblox will post -1.39 earnings per share for the current fiscal year.

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

Insider Activity at Roblox

In related news, CEO David Baszucki sold 52,568 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $1,995,481.28. Following the sale, the chief executive officer directly owned 799,646 shares of the company’s stock, valued at $30,354,562.16. This trade represents a 6.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of Roblox stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the completion of the transaction, the insider owned 398,064 shares in the company, valued at approximately $15,110,509.44. This represents a 4.31% 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 have sold 185,236 shares of company stock worth $7,538,642 in the last three months. Insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in RBLX. California State Teachers Retirement System grew its holdings in shares of Roblox by 5,370.1% during the 2nd quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after purchasing an additional 48,541,681 shares during the last quarter. Norges Bank acquired a new position in Roblox during the 4th quarter worth approximately $435,424,000. SRS Investment Management LLC bought a new position in Roblox in the 4th quarter valued at approximately $238,065,000. Amundi lifted its stake in Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after purchasing an additional 2,631,074 shares during the last quarter. Finally, Capital International Investors lifted its stake in Roblox by 7.3% in the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after purchasing an additional 2,184,439 shares during the last quarter. Institutional investors own 94.46% of the company’s stock.

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.