Roblox Corporation (NYSE:RBLX) Receives $60.89 Consensus Target Price from Analysts

Shares of Roblox Corporation (NYSE:RBLX) have been given a consensus rating of “Hold” by the thirty-one brokerages that are covering the firm, MarketBeat reports. Three research analysts have rated the stock with a sell recommendation, fifteen have issued a hold recommendation, twelve have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price objective among brokers that have issued ratings on the stock in the last year is $60.8929.

Several research analysts recently commented on RBLX shares. BTIG Research lowered Roblox from a “neutral” rating to a “sell” rating and set a $30.00 price target for the company. in a research report on Friday, July 31st. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a research report on Wednesday, June 24th. Piper Sandler reaffirmed a “neutral” rating and issued a $47.00 price objective (down from $50.00) on shares of Roblox in a research note on Friday, July 31st. HSBC cut shares of Roblox from a “buy” rating to a “hold” rating and set a $46.00 price target for the company. in a research note on Friday, May 1st. Finally, Moffett Nathanson reissued a “neutral” rating and set a $40.00 price target on shares of Roblox in a research note on Monday, August 3rd.

Insiders Place Their Bets

In other Roblox news, insider Mark Reinstra sold 4,512 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $57.34, for a total value of $258,718.08. Following the sale, the insider owned 422,248 shares in the company, valued at $24,211,700.32. This trade represents a 1.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sean Jack Buckley sold 4,744 shares of Roblox stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $46.36, for a total value of $219,931.84. Following the sale, the insider owned 97,141 shares of the company’s stock, valued at approximately $4,503,456.76. This trade represents a 4.66% 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. Insiders have sold a total of 54,300 shares of company stock worth $2,580,258 over the last quarter. Company insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Allspring Global Investments Holdings LLC increased its holdings in shares of Roblox by 379.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock valued at $53,102,000 after acquiring an additional 729,379 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab lifted its stake in shares of Roblox by 35.5% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company’s stock worth $7,076,000 after purchasing an additional 34,120 shares during the last quarter. Glynn Capital Management LLC purchased a new stake in shares of Roblox during the 4th quarter worth $5,706,000. Assenagon Asset Management S.A. boosted its position in Roblox by 89.0% during the second quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company’s stock valued at $102,984,000 after purchasing an additional 891,634 shares in the last quarter. Finally, Militia Capital Management LLC bought a new stake in Roblox during the first quarter valued at about $2,590,000. Institutional investors own 94.46% of the company’s stock.

Roblox Price Performance

Roblox stock opened at $37.66 on Friday. Roblox has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm’s fifty day moving average is $47.37 and its 200 day moving average is $53.22. The company has a market cap of $25.23 billion, a price-to-earnings ratio of -26.33 and a beta of 1.46.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same period last year, the company posted ($0.41) EPS. The business’s revenue was up 8.3% on a year-over-year basis. Sell-side analysts forecast that Roblox will post -1.39 EPS for the current fiscal year.

Roblox declared that its Board of Directors has approved a stock buyback plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

About Roblox

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.