Roblox Corporation (NYSE:RBLX) Receives Consensus Rating of “Hold” from Analysts

Shares of Roblox Corporation (NYSE:RBLX) have been assigned an average recommendation of “Hold” from the twenty-eight research firms that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, fourteen have assigned a hold recommendation, twelve have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $87.1667.

A number of equities research analysts have issued reports on RBLX shares. UBS Group reduced their target price on shares of Roblox from $74.00 to $49.00 and set a “neutral” rating on the stock in a report on Friday, May 1st. Wall Street Zen upgraded shares of Roblox from a “sell” rating to a “hold” rating in a research note on Saturday, March 28th. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and reduced their price objective for the company from $54.00 to $49.00 in a research note on Friday, May 1st. Barclays decreased their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. Finally, Deutsche Bank Aktiengesellschaft set a $115.00 target price on Roblox in a research note on Tuesday, January 20th.

Roblox Stock Performance

Shares of Roblox stock opened at $41.88 on Wednesday. The stock has a market capitalization of $28.12 billion, a price-to-earnings ratio of -26.50 and a beta of 1.50. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The business has a 50-day moving average of $58.29 and a 200 day moving average of $77.59. Roblox has a 12 month low of $41.66 and a 12 month high of $150.59.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. During the same quarter in the prior year, the company earned ($0.32) earnings per share. The business’s quarterly revenue was up 43.4% on a year-over-year basis. As a group, sell-side analysts forecast that Roblox will post -1.4 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Gregory Baszucki sold 16,666 shares of the firm’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total value of $965,794.70. Following the sale, the director owned 1,302,834 shares of the company’s stock, valued at $75,499,230.30. This trade represents a 1.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 30,034 shares of Roblox stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $72.65, for a total transaction of $2,181,970.10. Following the completion of the transaction, the insider owned 307,263 shares of the company’s stock, valued at $22,322,656.95. This represents a 8.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 568,662 shares of company stock worth $39,170,616. Corporate insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

Hedge funds and other institutional investors have recently modified their holdings of the company. Reyes Financial Architecture Inc. increased its holdings 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 buying an additional 194 shares during the last quarter. Hanson & Doremus Investment Management purchased a new stake in Roblox during the 1st quarter worth about $25,000. Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Roblox during the 3rd quarter worth about $26,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox in the 4th quarter valued at about $27,000. Finally, GW&K Investment Management LLC increased its holdings in shares of Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after acquiring an additional 161 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

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.