Roblox (NYSE:RBLX) Shares Up 8.4% After Analyst Upgrade

Roblox Corporation (NYSE:RBLX)’s stock price rose 8.4% during mid-day trading on Monday after Roth Mkm upgraded the stock from a neutral rating to a buy rating. Roth Mkm now has a $84.00 price target on the stock, up from their previous price target of $78.00. Roblox traded as high as $72.88 and last traded at $72.0050. Approximately 4,074,460 shares were traded during trading, a decline of 71% from the average daily volume of 14,282,514 shares. The stock had previously closed at $66.42.

Several other research analysts have also weighed in on RBLX. B. Riley Financial started coverage on shares of Roblox in a research note on Tuesday, December 9th. They issued a “buy” rating and a $125.00 price objective on the stock. Jefferies Financial Group set a $85.00 target price on Roblox in a report on Thursday, January 15th. JPMorgan Chase & Co. dropped their price objective on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday. Canaccord Genuity Group reduced their target price on Roblox from $160.00 to $140.00 and set a “buy” rating for the company in a research report on Tuesday, February 3rd. Finally, The Goldman Sachs Group set a $140.00 price objective on Roblox in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $120.88.

Insider Buying and Selling

In other news, CAO Amy Marie Rawlings sold 2,642 shares of the business’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $95.24, for a total transaction of $251,624.08. Following the completion of the sale, the chief accounting officer owned 46,452 shares in the company, valued at $4,424,088.48. The trade was a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mark Reinstra sold 16,782 shares of the stock in a transaction that occurred on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total transaction of $1,598,317.68. Following the completion of the transaction, the insider owned 370,532 shares in the company, valued at $35,289,467.68. This represents a 4.33% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 423,899 shares of company stock worth $37,883,851. 12.92% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

Hedge funds and other institutional investors have recently made changes to their positions in the stock. WPG Advisers LLC increased its holdings in Roblox by 17.8% during the 3rd quarter. WPG Advisers LLC now owns 555 shares of the company’s stock worth $77,000 after purchasing an additional 84 shares in the last quarter. Baird Financial Group Inc. grew its holdings in shares of Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after buying an additional 102 shares in the last quarter. Sunbelt Securities Inc. raised its position in Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after buying an additional 105 shares during the last quarter. Lido Advisors LLC lifted its stake in Roblox by 1.3% in the 2nd quarter. Lido Advisors LLC now owns 8,529 shares of the company’s stock valued at $897,000 after acquiring an additional 106 shares in the last quarter. Finally, Brown Brothers Harriman & Co. boosted its position in Roblox by 2.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock worth $560,000 after acquiring an additional 110 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Roblox Stock Up 8.5%

The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.54. The company has a market capitalization of $47.20 billion, a P/E ratio of -46.38 and a beta of 1.63. The firm’s 50 day moving average price is $81.19 and its two-hundred day moving average price is $107.72.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 311.88%. The firm had revenue of $1.42 billion for the quarter, compared to analyst estimates of $2.08 billion. During the same period in the previous year, the business earned ($0.33) EPS. The company’s revenue was up 122.6% compared to the same quarter last year. Equities research analysts forecast that Roblox Corporation will post -1.49 EPS for the current year.

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.