Barclays Forecasts Strong Price Appreciation for Roblox (NYSE:RBLX) Stock

Key Points

• Barclays raised its price target for Roblox (NYSE:RBLX) from $62.00 to $120.00, maintaining an "equal weight" rating.
• JPMorgan Chase & Co. also lifted their target on Roblox to $125.00, while Citigroup set a target of $152.00, indicating strong analyst interest in the stock.
• Despite a revenue increase of 50.5% year-over-year, Roblox reported a loss of ($0.41) EPS, missing the consensus estimate of ($0.37) per share.

Roblox (NYSE:RBLX - Get Free Report) had its price target boosted by equities research analysts at Barclays from $62.00 to $120.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Barclays's target price suggests a potential downside of 6.52% from the company's previous close.

Several other brokerages have also recently issued reports on RBLX. JPMorgan Chase & Co. lifted their price target on Roblox from $120.00 to $125.00 and gave the company an "overweight" rating in a research report on Wednesday, July 16th. Raymond James Financial cut Roblox from a "strong-buy" rating to an "outperform" rating and lifted their target price for the stock from $81.00 to $130.00 in a report on Wednesday, July 23rd. Benchmark lifted their target price on Roblox from $71.00 to $77.00 and gave the stock a "buy" rating in a report on Friday, May 2nd. Macquarie lifted their target price on Roblox from $76.00 to $80.00 and gave the stock an "outperform" rating in a report on Monday, May 5th. Finally, Citigroup lifted their target price on Roblox from $123.00 to $152.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and nineteen have given a buy rating to the company's stock. According to data from MarketBeat, Roblox presently has a consensus rating of "Moderate Buy" and an average price target of $107.36.

Roblox Stock Performance

RBLX traded down $9.42 during trading hours on Friday, hitting $128.37. The company's stock had a trading volume of 1,371,499 shares, compared to its average volume of 8,700,717. Roblox has a fifty-two week low of $35.30 and a fifty-two week high of $150.59. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.39. The firm has a market capitalization of $87.07 billion, a PE ratio of -95.56 and a beta of 1.60. The company has a 50-day simple moving average of $104.20 and a 200 day simple moving average of $78.13.

Roblox (NYSE:RBLX - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported ($0.41) EPS for the quarter, missing the consensus estimate of ($0.37) by ($0.04). Roblox had a negative net margin of 22.94% and a negative return on equity of 442.68%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.20 billion. During the same quarter in the prior year, the business earned ($0.32) earnings per share. The firm's revenue was up 50.5% compared to the same quarter last year. As a group, sell-side analysts expect that Roblox will post -1.49 EPS for the current year.

Insiders Place Their Bets

In related news, CEO David Baszucki sold 139,507 shares of the business's stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $105.19, for a total transaction of $14,674,741.33. Following the completion of the transaction, the chief executive officer owned 211,559 shares of the company's stock, valued at approximately $22,253,891.21. The trade was a 39.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Matthew D. Kaufman sold 6,000 shares of the business's stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $118.51, for a total value of $711,060.00. Following the transaction, the insider directly owned 307,223 shares of the company's stock, valued at $36,408,997.73. This represents a 1.92% decrease in their position. The disclosure for this sale can be found here. Insiders sold 6,651,690 shares of company stock valued at $593,440,562 over the last quarter. Insiders own 12.92% of the company's stock.

Hedge Funds Weigh In On Roblox

Several large investors have recently made changes to their positions in RBLX. Gordian Capital Singapore Pte Ltd lifted its position in shares of Roblox by 74.8% during the 4th quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company's stock worth $32,000 after purchasing an additional 240 shares during the last quarter. ORG Partners LLC acquired a new position in shares of Roblox during the 2nd quarter worth about $33,000. Larson Financial Group LLC lifted its position in shares of Roblox by 819.0% during the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company's stock worth $34,000 after purchasing an additional 516 shares during the last quarter. Whipplewood Advisors LLC acquired a new position in shares of Roblox during the 2nd quarter worth about $34,000. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Roblox during the 1st quarter worth about $39,000. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Company Profile

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.

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