Wedbush Issues Positive Forecast for Roblox (NYSE:RBLX) Stock Price

Key Points

• Wedbush raised Roblox’s price target from $40 to $48 while maintaining a “neutral” rating, implying 5.24% upside from the previous close.
• Analyst sentiment remains mixed, with Roblox holding a consensus “Hold” rating and an average price target of $59.50.
• Roblox beat quarterly EPS estimates with a loss of $0.26 per share versus expectations of $0.34, but revenue of $1.47 billion fell short of forecasts and the company remained unprofitable.

Roblox (NYSE:RBLX - Get Free Report) had its price objective lifted by Wedbush from $40.00 to $48.00 in a report issued on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Wedbush's price target would suggest a potential upside of 5.24% from the company's previous close.

RBLX has been the subject of a number of other reports. Moffett Nathanson reissued a "neutral" rating and issued a $40.00 target price on shares of Roblox in a research note on Monday, August 3rd. UBS Group set a $33.00 price objective on Roblox in a report on Friday, July 31st. BMO Capital Markets cut Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 target price for the company. in a research note on Friday, July 31st. Bank of America lifted their price target on shares of Roblox from $44.00 to $48.00 and gave the company a "neutral" rating in a research note on Monday. Finally, Oppenheimer restated an "outperform" rating on shares of Roblox in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, fourteen have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Roblox currently has a consensus rating of "Hold" and a consensus price target of $59.50.

Roblox Stock Up 0.2%

Shares of NYSE RBLX opened at $45.61 on Monday. Roblox has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market cap of $30.56 billion, a P/E ratio of -31.90 and a beta of 1.47. The firm has a 50 day moving average price of $44.37 and a 200 day moving average price of $50.09.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping analysts' consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business's quarterly revenue was up 8.3% compared to the same quarter last year. During the same period last year, the firm posted ($0.41) earnings per share. Analysts expect that Roblox will post -1.39 EPS for the current year.

Roblox declared that its Board of Directors has authorized a share 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 repurchase up to 9.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company's management believes its shares are undervalued.

Insider Buying and Selling

In other news, CFO Naveen Chopra sold 17,509 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $664,641.64. Following the transaction, the chief financial officer directly owned 363,249 shares in the company, valued at $13,788,932.04. The trade was a 4.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the company's stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $57.69, for a total value of $961,461.54. Following the completion of the sale, the director owned 1,277,835 shares in the company, valued at $73,718,301.15. This represents a 1.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 185,236 shares of company stock worth $7,538,642. Corporate insiders own 10.05% of the company's stock.

Institutional Trading of Roblox

Hedge funds have recently modified their holdings of the stock. California State Teachers Retirement System raised its holdings in Roblox by 5,370.1% in the 2nd quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company's stock valued at $2,688,852,000 after acquiring an additional 48,541,681 shares during the period. Norges Bank acquired a new stake in Roblox during the 4th quarter worth approximately $435,424,000. SRS Investment Management LLC bought a new stake in Roblox in the 4th quarter valued at $238,065,000. Amundi boosted its stake in Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company's stock valued at $326,586,000 after purchasing an additional 2,631,074 shares during the period. Finally, Capital International Investors grew its holdings in Roblox by 7.3% in the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company's stock valued at $2,589,282,000 after buying an additional 2,184,439 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.

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