Roblox Corporation (NYSE:RBLX) Sees Large Growth in Short Interest

Roblox Corporation (NYSE:RBLX) was the target of a significant growth in short interest in the month of February. As of February 13th, there was short interest totaling 19,769,459 shares, a growth of 31.0% from the January 29th total of 15,089,826 shares. Approximately 3.4% of the company’s shares are sold short. Based on an average daily volume of 16,721,993 shares, the short-interest ratio is currently 1.2 days. Based on an average daily volume of 16,721,993 shares, the short-interest ratio is currently 1.2 days. Approximately 3.4% of the company’s shares are sold short.

Roblox Stock Down 1.8%

RBLX traded down $1.22 during mid-day trading on Monday, reaching $67.44. 7,181,356 shares of the stock were exchanged, compared to its average volume of 13,350,752. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96. The stock has a market capitalization of $44.62 billion, a PE ratio of -43.51 and a beta of 1.62. Roblox has a 1 year low of $50.10 and a 1 year high of $150.59. The company has a 50 day moving average price of $73.34 and a two-hundred day moving average price of $100.93.

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

Insider Buying and Selling at Roblox

In other Roblox news, insider Mark Reinstra sold 60,000 shares of Roblox stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $63.94, for a total transaction of $3,836,400.00. Following the transaction, the insider directly owned 394,322 shares of the company’s stock, valued at approximately $25,212,948.68. The trade was a 13.21% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO David Baszucki sold 272,269 shares of the stock in a transaction dated Tuesday, February 10th. The shares were 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 of the company’s stock, valued at approximately $58,954,362.18. The trade was a 25.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 703,144 shares of company stock worth $51,681,640 over the last 90 days. Company insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently modified their holdings of the company. Reflection Asset Management bought a new position in Roblox in the 4th quarter worth $60,000. Wick Capital Partners LLC purchased a new stake in Roblox during the 4th quarter valued at $483,000. MidFirst Bank purchased a new stake in shares of Roblox during the fourth quarter valued at $250,000. Virtu Financial LLC bought a new stake in Roblox in the 4th quarter worth about $4,708,000. Finally, Corient Private Wealth LLC lifted its stake in Roblox by 414.9% during the 4th quarter. Corient Private Wealth LLC now owns 101,171 shares of the company’s stock valued at $8,198,000 after acquiring an additional 81,521 shares during the period. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Canaccord Genuity Group dropped their price target on shares of Roblox from $160.00 to $140.00 and set a “buy” rating on the stock in a research report on Tuesday, February 3rd. The Goldman Sachs Group dropped their target price on shares of Roblox from $180.00 to $140.00 and set a “buy” rating on the stock in a report on Friday, February 6th. Wedbush reaffirmed an “outperform” rating and set a $110.00 price target on shares of Roblox in a research report on Friday, February 6th. Needham & Company LLC lowered their price objective on Roblox from $159.00 to $105.00 and set a “buy” rating for the company in a research report on Friday, February 6th. Finally, Wolfe Research set a $100.00 target price on Roblox in a research report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $119.44.

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.