Roblox Corporation (NYSE:RBLX) Given Consensus Rating of “Hold” by Brokerages

Shares of Roblox Corporation (NYSE:RBLX) have earned an average rating of “Hold” from the twenty-eight ratings firms that are covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $87.0741.

A number of research firms have recently issued reports on RBLX. JPMorgan Chase & Co. cut their target price on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a research note on Friday, February 6th. Roth Mkm set a $65.00 target price on shares of Roblox in a research note on Tuesday, May 5th. Piper Sandler cut shares of Roblox from an “overweight” rating to a “neutral” rating and cut their target price for the company from $100.00 to $50.00 in a research note on Monday, May 4th. BTIG Research cut shares of Roblox from a “buy” rating to a “neutral” rating in a research report on Friday, May 1st. Finally, Oppenheimer began coverage on shares of Roblox in a report on Friday, May 1st. They set an “outperform” rating for the company.

Insider Activity

In other Roblox news, CEO David Baszucki sold 50,628 shares of Roblox stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the completion of the sale, the chief executive officer owned 852,214 shares of the company’s stock, valued at approximately $38,588,249.92. The trade was a 5.61% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Amy Marie Rawlings sold 2,895 shares of the business’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.24, for a total transaction of $130,969.80. Following the completion of the transaction, the chief accounting officer directly owned 35,238 shares of the company’s stock, valued at $1,594,167.12. This trade represents a 7.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 183,471 shares of company stock worth $8,930,068. Corporate insiders own 10.05% of the company’s stock.

Hedge Funds Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Reyes Financial Architecture Inc. boosted its stake in Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares during the period. Hanson & Doremus Investment Management bought a new stake in Roblox during the 1st quarter worth about $25,000. Fideuram Asset Management Ireland dac bought a new stake in Roblox during the 4th quarter worth about $27,000. GW&K Investment Management LLC lifted its position in Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares in the last quarter. Finally, Indiana Trust & Investment Management Co bought a new stake in Roblox during the 4th quarter worth about $32,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Stock Performance

NYSE:RBLX opened at $47.10 on Friday. Roblox has a 1 year low of $40.15 and a 1 year high of $150.59. The firm has a 50 day moving average of $52.48 and a 200-day moving average of $69.51. 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 stock has a market capitalization of $31.63 billion, a P/E ratio of -29.81 and a beta of 1.50.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating 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 company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. During the same quarter in the previous year, the company posted ($0.32) earnings per share. Roblox’s quarterly revenue was up 43.4% compared to the same quarter last year. As a group, sell-side analysts anticipate that Roblox will post -1.4 EPS for the current fiscal year.

Roblox announced that its board has approved a share repurchase program on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to reacquire up to 9.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are 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.