Roblox Corporation (NYSE:RBLX) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Roblox Corporation (NYSE:RBLX) has been given an average rating of “Moderate Buy” by the twenty-eight brokerages that are currently covering the stock, Marketbeat reports. Three analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and seventeen have issued a buy recommendation on the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $131.6538.

Several equities analysts have recently commented on the company. TD Cowen reiterated a “sell” rating on shares of Roblox in a research report on Tuesday. Deutsche Bank Aktiengesellschaft set a $115.00 price target on shares of Roblox in a research report on Tuesday, January 20th. BTIG Research lowered their price objective on shares of Roblox from $174.00 to $141.00 and set a “buy” rating for the company in a report on Wednesday. UBS Group set a $155.00 target price on shares of Roblox in a report on Tuesday, January 13th. Finally, Oppenheimer reissued an “outperform” rating and issued a $150.00 price target on shares of Roblox in a research note on Friday, October 31st.

Insider Buying and Selling

In related news, Director Anthony P. Lee sold 7,000 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The stock was sold at an average price of $82.45, for a total transaction of $577,150.00. Following the transaction, the director directly owned 256,768 shares in the company, valued at $21,170,521.60. This trade represents a 2.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David Baszucki sold 66,896 shares of Roblox stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $76.48, for a total value of $5,116,206.08. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 504,300 shares of company stock worth $46,290,436 in the last 90 days. 12.92% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

Several institutional investors have recently added to or reduced their stakes in RBLX. Reyes Financial Architecture Inc. increased its position in shares of 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. Pilgrim Partners Asia Pte Ltd purchased a new position in Roblox during the 3rd quarter valued at about $26,000. Total Investment Management Inc. bought a new position in Roblox during the 2nd quarter valued at approximately $29,000. Indiana Trust & Investment Management Co bought a new stake in shares of Roblox in the 4th quarter worth approximately $32,000. Finally, ORG Partners LLC bought a new stake in shares of Roblox in the 2nd quarter worth approximately $33,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Roblox Stock Performance

NYSE RBLX opened at $65.53 on Monday. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59. The company has a fifty day moving average of $83.98 and a 200-day moving average of $109.83. The company has a market capitalization of $42.91 billion, a P/E ratio of -45.83 and a beta of 1.64. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, October 30th. The company reported ($0.37) EPS for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.07. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The business had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same quarter in the prior year, the firm earned ($0.37) earnings per share. The firm’s revenue was up 70.3% on a year-over-year basis. As a group, equities research analysts predict that Roblox will post -1.49 EPS for the current fiscal year.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: JPMorgan flagged that Roblox’s recent stabilization in engagement trends is “encouraging,” which could support revenue visibility if usage holds steady and monetization improves. JPMorgan: Stabilization Encouraging
• Neutral Sentiment: Upcoming earnings are a near?term catalyst: analysts expect a year?over?year decline in EPS and the company is due to report, so results and guidance could swing sentiment. Monitor bookings, engagement metrics and margin commentary. Analysts Expect Earnings Decline
• Neutral Sentiment: Debt and valuation context: the company carries leverage and a negative trailing P/E; some investors view recent pullbacks as a buying opportunity if engagement and monetization signals improve. Coverage pieces are debating attractiveness after the pullback. Is Roblox Still Attractive?
• Negative Sentiment: Google’s new Project Genie, which aims to let users create fully rendered 3D worlds and controllable characters, rattled gaming and creator-platform stocks today and put downward pressure on Roblox shares as investors reassess competitive risk. Google’s Project Genie Hammers Gaming Stocks
• Negative Sentiment: The Netherlands’ consumer regulator (ACM) opened a probe into Roblox over potential risks to minors and exposure to harmful content in the EU; regulatory investigations raise the prospect of fines, imposed compliance costs, or feature restrictions that could hit engagement and monetization. Dutch regulator to probe Roblox
• Negative Sentiment: Wedbush trimmed its price target from $165 to $110 (while keeping an outperform rating), a reduction that can weaken sentiment and reprice expectations even though the new target still implies upside from current levels. Wedbush Lowers Price Target

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.