Roblox Corporation (NYSE:RBLX) Receives Average Rating of “Hold” from Brokerages

Shares of Roblox Corporation (NYSE:RBLX) have been assigned a consensus rating of “Hold” from the twenty-eight analysts that are currently covering the company, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $87.0741.

A number of equities research analysts have recently weighed in on RBLX shares. Needham & Company LLC started coverage on shares of Roblox in a report on Friday, May 1st. They issued a “buy” rating and a $60.00 price objective for the company. Wall Street Zen lowered shares of Roblox from a “hold” rating to a “sell” rating in a report on Saturday, May 30th. Barclays lowered their price objective on shares of Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Friday, March 27th. Finally, Morgan Stanley restated an “overweight” rating and issued a $62.00 price objective on shares of Roblox in a report on Friday, May 1st.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox was recently trading higher relative to the broader market, suggesting some buyers are still supporting the shares despite the legal overhang. Roblox (RBLX) Ascends While Market Falls: Some Facts to Note
• Neutral Sentiment: Roblox continues to attract advertiser and product attention, including age-based account updates and new measurement tools, which could support the long-term platform narrative. Did New Kid-Safe Accounts and TV-Style Ad Metrics Just Shift Roblox’s (RBLX) Investment Narrative?
• Negative Sentiment: Roblox faces a securities class action alleging investors were misled about organic user growth and the effects of its age-verification rollout, adding legal uncertainty for shareholders. Roblox Corporation (RBLX) Faces Securities Class Action Amid Surprise Age Verification Impact, $6.7 Billion Market Cap Wiped Out – HBBS
• Negative Sentiment: Additional law firms are urging investors to join or lead lawsuits, keeping the stock in the spotlight and reinforcing concerns about ongoing litigation risk. RBLX Investors Have Opportunity to Lead Roblox Corporation Securities Fraud Lawsuit
• Negative Sentiment: Roblox is also facing broader child-safety allegations in litigation brought with the Arkansas Attorney General, which could add reputational and regulatory pressure. The Lanier Law Firm Represents the Arkansas Attorney General in Claims Against Roblox and Discord Over a “Predatory Pipeline” Targeting Children

Insider Transactions at Roblox

In other news, insider Sean Jack Buckley sold 4,744 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $46.36, for a total value of $219,931.84. Following the completion of the sale, the insider directly owned 97,141 shares in the company, valued at approximately $4,503,456.76. The trade was a 4.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 14,356 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the completion of the sale, the insider owned 349,964 shares of the company’s stock, valued at approximately $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. In the last quarter, insiders sold 189,449 shares of company stock worth $9,179,410. Corporate insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Reyes Financial Architecture Inc. increased its stake in shares of Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after buying an additional 194 shares during the period. Hanson & Doremus Investment Management purchased a new position in shares of Roblox in the first quarter worth $25,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox in the fourth quarter worth $27,000. Basecamp Wealth Advisors LLC increased 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 period. Finally, GW&K Investment Management LLC increased its stake in shares of Roblox by 76.3% in the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares during the period. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Trading Up 1.7%

Shares of Roblox stock opened at $47.89 on Thursday. Roblox has a 1 year low of $40.15 and a 1 year high of $150.59. The firm has a market cap of $32.16 billion, a PE ratio of -30.31 and a beta of 1.44. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The company has a 50 day simple moving average of $48.66 and a two-hundred day simple moving average of $62.86.

Roblox (NYSE:RBLX) last announced its quarterly earnings data 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. The firm had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business’s quarterly revenue was up 43.4% on a year-over-year basis. During the same period in the previous year, the business posted ($0.32) EPS. Analysts expect that Roblox will post -1.4 earnings per share for the current fiscal year.

Roblox announced that its Board of Directors has authorized a share buyback program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to purchase up to 9.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its stock is undervalued.

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.