DA Davidson Initiates Coverage on Roblox (NYSE:RBLX)

DA Davidson initiated coverage on shares of Roblox (NYSE:RBLX) in a report released on Wednesday,Benzinga reports. The brokerage set a “neutral” rating and a $65.00 price target on the stock. DA Davidson’s target price suggests a potential downside of 2.96% from the stock’s current price.

A number of other brokerages have also recently commented on RBLX. Barclays decreased their price target on Roblox from $130.00 to $115.00 and set an “equal weight” rating on the stock in a research note on Friday, February 6th. The Goldman Sachs Group decreased their target price on shares of Roblox from $180.00 to $140.00 and set a “buy” rating on the stock in a research note on Friday, February 6th. BTIG Research reiterated a “buy” rating and set a $141.00 price target on shares of Roblox in a report on Friday, February 6th. Macquarie Infrastructure raised their price target on shares of Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a report on Tuesday, November 4th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eight have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $117.35.

Roblox Price Performance

RBLX stock opened at $66.98 on Wednesday. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96. Roblox has a 52 week low of $50.10 and a 52 week high of $150.59. The firm’s fifty day moving average is $73.06 and its 200 day moving average is $100.57. The firm has a market cap of $44.32 billion, a P/E ratio of -43.21 and a beta of 1.62.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.49) by $0.04. The firm had revenue of $1.42 billion for the quarter, compared to analysts’ expectations of $2.08 billion. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company’s revenue for the quarter was up 122.6% compared to the same quarter last year. During the same period last year, the firm earned ($0.33) earnings per share. Research analysts predict that Roblox will post -1.49 earnings per share for the current year.

Insider Transactions at Roblox

In other news, insider Arvind Chakravarthy sold 40,646 shares of the firm’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total value of $2,732,630.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO David Baszucki sold 272,269 shares of the company’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $72.66, for a total value of $19,783,065.54. Following the completion of the sale, the chief executive officer directly owned 811,373 shares in the company, valued at approximately $58,954,362.18. The trade was a 25.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 703,144 shares of company stock worth $51,681,640. 12.92% of the stock is owned by insiders.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently bought and sold shares of the business. Reyes Financial Architecture Inc. grew its stake in shares of Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after acquiring an additional 194 shares during the last quarter. Pilgrim Partners Asia Pte Ltd bought a new position in Roblox in the 3rd quarter valued at approximately $26,000. Fideuram Asset Management Ireland dac purchased a new stake in Roblox during the 4th quarter valued at $27,000. Total Investment Management Inc. purchased a new stake in Roblox during the 2nd quarter valued at $29,000. 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 worth $30,000 after purchasing an additional 161 shares in the last quarter. Institutional investors 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.