Analysts Set Roblox Corporation (NYSE:RBLX) Target Price at $60.89

Roblox Corporation (NYSE:RBLX) has been given a consensus rating of “Hold” by the thirty-one research firms that are currently covering the company, Marketbeat.com reports. Three analysts have rated the stock with a sell recommendation, fourteen have given a hold recommendation, thirteen have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month target price among analysts that have issued ratings on the stock in the last year is $60.1429.

Several equities research analysts have weighed in on RBLX shares. Wells Fargo & Company boosted their price objective on Roblox from $46.00 to $64.00 and gave the stock an “overweight” rating in a research note on Monday. Deutsche Bank Aktiengesellschaft lowered Roblox from a “buy” rating to a “hold” rating and lowered their price objective for the company from $56.00 to $38.00 in a research note on Friday, July 31st. Wedbush lifted their target price on Roblox from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Monday. Oppenheimer reissued an “outperform” rating on shares of Roblox in a research report on Friday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Wednesday, June 24th.

Insiders Place Their Bets

In related news, insider Mark Reinstra sold 5,773 shares of the company’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $44.80, for a total transaction of $258,630.40. Following the transaction, the insider directly owned 392,291 shares in the company, valued at approximately $17,574,636.80. This represents a 1.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the completion of the sale, the chief executive officer directly owned 799,646 shares in the company, valued at $30,354,562.16. This trade represents a 6.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 185,236 shares of company stock valued at $7,538,642. 10.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

Several hedge funds and other institutional investors have recently modified their holdings of the business. Hanson & Doremus Investment Management purchased a new position in shares of Roblox during the 1st quarter valued at about $25,000. Fideuram Asset Management Ireland dac purchased a new stake in shares of Roblox in the fourth quarter worth about $27,000. Basecamp Wealth Advisors LLC boosted 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 buying an additional 252 shares during the last quarter. Root Financial Partners LLC grew its holdings in Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after acquiring an additional 283 shares during the period. Finally, Western Wealth Management LLC acquired a new stake in Roblox during the first quarter worth about $33,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox Stock Up 12.4%

NYSE RBLX opened at $51.15 on Tuesday. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market capitalization of $34.27 billion, a P/E ratio of -35.77 and a beta of 1.47. Roblox has a one year low of $33.88 and a one year high of $142.00. The stock has a 50 day moving average price of $44.25 and a 200-day moving average price of $49.98.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion for 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%. Roblox’s quarterly revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.41) earnings per share. As a group, equities analysts predict that Roblox will post -1.39 EPS for the current fiscal year.

Roblox declared that its board has authorized a share buyback plan on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to buy up to 9.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s leadership believes its stock is undervalued.

More Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Analysts raised price targets and cited improving momentum. Wedbush lifted its target from $40 to $48, while Bank of America also raised its target. Although Wedbush retained a Neutral rating, analysts described Roblox as being at a potential “positive inflection” point, helping drive investor optimism. Roblox gains 11% as BofA, Wedbush raise targets
• Positive Sentiment: RDC unveiled several potential growth catalysts. Roblox is targeting older gamers, expanding access through “Roblox Everywhere,” and introducing tools intended to make game creation easier. Management also highlighted artificial intelligence as a way to enable more people to become game makers, potentially increasing content supply and user engagement. Roblox lays groundwork for next growth phase
• Positive Sentiment: New platform tools and algorithm changes are boosting expectations for re-expansion. Analysts said the initiatives could improve discovery, attract users beyond Roblox’s traditional younger audience, and support a renewed growth phase. Roblox Takes Steps to Build Re-Expansion Opportunity
• Neutral Sentiment: Monetization remains the key unresolved issue. Wedbush said the new products could accelerate growth, but visibility into how quickly they will translate into bookings and revenue remains limited. The $48 Wedbush target is also below the reported $51.15 share price, signaling that the firm’s optimism is tempered. Roblox New Tools Could Accelerate Growth

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.