Roblox Corporation (NYSE:RBLX) Given Average Rating of “Moderate Buy” by Analysts

Roblox Corporation (NYSE:RBLX) has been assigned an average recommendation of “Moderate Buy” from the thirty brokerages that are currently covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating, sixteen have given a buy rating and one has issued a strong buy rating on the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $86.2963.

A number of analysts have recently weighed in on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a research report on Wednesday, June 24th. Wall Street Zen downgraded shares of Roblox from a “hold” rating to a “sell” rating in a research report on Saturday, May 30th. Morgan Stanley reissued an “overweight” rating and set a $62.00 price target on shares of Roblox in a research report on Friday, May 1st. Wolfe Research assumed coverage on Roblox in a research note on Friday, May 1st. They set an “outperform” rating on the stock. Finally, TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and reduced their price objective for the stock from $54.00 to $49.00 in a research note on Friday, May 1st.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox is seeing unusually heavy call option activity, suggesting some traders are betting on further upside in the stock. Roblox shows huge, unusual call option activity – is RBLX stock too cheap?
• Positive Sentiment: Market commentary is highlighting a possible valuation opportunity in Roblox after the recent selloff, which may be helping attract bargain hunters. Roblox stock is surging Monday: What’s driving the action?
• Neutral Sentiment: Several law firms are reminding investors of the August 7 deadline to seek lead-plaintiff status in the securities class action, keeping legal scrutiny around Roblox in the spotlight. ROSEN, HIGHLY REGARDED INVESTOR COUNSEL, Encourages Roblox Corporation Investors to Secure Counsel Before Important Deadline in Securities Class Action – RBLX
• Neutral Sentiment: The class-action filings center on Roblox’s April quarter update, where the company reported a sharp sequential decline in daily active users after its age-verification rollout, adding uncertainty around user growth. Roblox Corporation (RBLX) Faces Securities Class Action Amid Surprise Age Verification Impact, $6.7 Billion Market Cap Wiped Out – HBBS
• Negative Sentiment: Multiple firms say a securities fraud class action has already been filed against Roblox and its officers, a legal overhang that could pressure sentiment. RBLX Investors Have Opportunity to Lead Roblox Corporation Securities Fraud Lawsuit

Roblox Stock Up 14.3%

RBLX stock opened at $54.37 on Thursday. Roblox has a twelve month low of $40.15 and a twelve month high of $150.59. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a market capitalization of $36.51 billion, a P/E ratio of -34.41 and a beta of 1.44. The firm has a 50 day simple moving average of $48.06 and a 200-day simple moving average of $61.84.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter last year, the company earned ($0.32) earnings per share. The business’s quarterly revenue was up 43.4% compared to the same quarter last year. On average, equities research analysts predict that Roblox will post -1.4 earnings per share for the current fiscal year.

Roblox declared that its Board of Directors has initiated a stock buyback program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, CFO Naveen K. Chopra sold 16,863 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $763,556.64. Following the transaction, the chief financial officer directly owned 380,758 shares in the company, valued at $17,240,722.24. This trade represents a 4.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the firm’s stock in a transaction 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 completion of the sale, the insider owned 349,964 shares in the company, valued at $15,842,870.28. The trade was a 3.94% 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. Insiders sold a total of 189,449 shares of company stock valued at $9,179,410 over the last three months. 10.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

Hedge funds have recently added to or reduced their stakes in the stock. Reyes Financial Architecture Inc. lifted its stake in 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 buying an additional 194 shares during the last quarter. Hanson & Doremus Investment Management bought a new stake in Roblox in the first quarter valued at $25,000. Fideuram Asset Management Ireland dac bought a new stake in Roblox in the fourth quarter valued at $27,000. Basecamp Wealth Advisors LLC lifted its stake in Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after buying an additional 252 shares during the last quarter. Finally, GW&K Investment Management LLC lifted its stake in Roblox by 76.3% in the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after buying an additional 161 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

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.