Roblox Corporation (NYSE:RBLX) Receives $60.89 Consensus PT from Brokerages

Roblox Corporation (NYSE:RBLX) has been assigned an average recommendation of “Hold” from the thirty-one analysts that are presently covering the stock, MarketBeat Ratings reports. Three research analysts have rated the stock with a sell rating, fifteen have issued a hold rating, twelve have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $60.8929.

Several research firms have weighed in on RBLX. Raymond James Financial initiated coverage on shares of Roblox in a research note on Monday, June 29th. They issued a “market perform” rating for the company. Roth Capital set a $65.00 price objective on Roblox in a report on Tuesday, May 5th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a report on Wednesday, June 24th. Needham & Company LLC lowered their target price on Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Friday, July 31st. Finally, Piper Sandler restated a “neutral” rating and set a $47.00 target price (down from $50.00) on shares of Roblox in a report on Friday, July 31st.

Roblox Trading Down 0.3%

RBLX stock opened at $38.13 on Friday. The company has a market capitalization of $25.55 billion, a PE ratio of -26.67 and a beta of 1.46. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. Roblox has a one year low of $33.88 and a one year high of $142.00. The company’s 50 day moving average price is $47.56 and its two-hundred day moving average price is $53.73.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The firm’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.41) EPS. As a group, analysts predict that Roblox will post -1.39 earnings per share for the current fiscal year.

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

Insider Transactions at Roblox

In other news, insider Matthew D. Kaufman sold 14,356 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the transaction, the insider owned 349,964 shares in the company, valued at approximately $15,842,870.28. This trade represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 4,512 shares of Roblox stock in a transaction on Monday, July 6th. The stock was sold at an average price of $57.34, for a total transaction of $258,718.08. Following the completion of the transaction, the insider directly owned 422,248 shares in the company, valued at approximately $24,211,700.32. The trade was a 1.06% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 161,983 shares of company stock valued at $7,455,828. Insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several institutional investors have recently added to or reduced their stakes in the company. 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. Hanson & Doremus Investment Management purchased a new stake in shares of Roblox during the first quarter worth about $25,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox in the fourth quarter worth about $27,000. Basecamp Wealth Advisors LLC grew its stake in shares of Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after purchasing an additional 252 shares during the last quarter. Finally, GW&K Investment Management LLC increased its holdings in Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after purchasing an additional 161 shares during the period. Hedge funds and other 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.