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

Key Points

• Benchmark analysts have raised their price target for Roblox (NYSE:RBLX) stock from $77.00 to $150.00, suggesting a potential upside of 16.12% from the stock's previous close.
• Roblox shares recently traded down 6.3%, reaching $129.18, despite reporting significant year-over-year revenue growth of 50.5%.
• Insider trading activity shows a significant selling trend, with executives selling large quantities of stock, including 139,507 shares sold by CEO David Baszucki.

Roblox (NYSE:RBLX - Get Free Report) had its price objective hoisted by research analysts at Benchmark from $77.00 to $150.00 in a note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the stock. Benchmark's target price indicates a potential upside of 16.12% from the stock's previous close.

Other research analysts have also recently issued research reports about the company. JPMorgan Chase & Co. increased their price objective on Roblox from $120.00 to $125.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 16th. Bank of America upped their target price on Roblox from $86.00 to $103.00 and gave the stock a "buy" rating in a report on Thursday, June 5th. Canaccord Genuity Group upped their target price on Roblox from $125.00 to $160.00 and gave the stock a "buy" rating in a report on Thursday. Barclays upped their target price on Roblox from $62.00 to $120.00 and gave the stock an "equal weight" rating in a report on Friday. Finally, Raymond James Financial lowered Roblox from a "strong-buy" rating to an "outperform" rating and upped their target price for the stock from $81.00 to $130.00 in a report on Wednesday, July 23rd. One investment analyst has rated the stock with a sell rating, four have given a hold rating and nineteen have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $116.91.

Roblox Stock Down 6.3%

Shares of Roblox stock traded down $8.61 on Friday, reaching $129.18. The company's stock had a trading volume of 4,337,579 shares, compared to its average volume of 8,722,353. The company has a market capitalization of $87.62 billion, a price-to-earnings ratio of -96.40 and a beta of 1.60. The firm's fifty day simple moving average is $104.20 and its two-hundred day simple moving average is $78.13. Roblox has a 52 week low of $35.30 and a 52 week high of $150.59. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.39.

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 analysts' consensus estimates of ($0.37) by ($0.04). Roblox had a negative return on equity of 442.68% and a negative net margin of 22.94%. The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.20 billion. During the same quarter in the prior year, the firm posted ($0.32) earnings per share. Roblox's quarterly revenue was up 50.5% on a year-over-year basis. Equities analysts anticipate that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Matthew D. Kaufman sold 6,000 shares of the firm's stock in a transaction that occurred on Thursday, July 17th. The shares were sold at an average price of $118.51, for a total transaction of $711,060.00. Following the sale, the insider owned 307,223 shares in the company, valued at approximately $36,408,997.73. This trade represents a 1.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO David Baszucki sold 139,507 shares of the company's stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $105.19, for a total value of $14,674,741.33. Following the sale, 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 ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 6,651,690 shares of company stock worth $593,440,562. 12.92% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RBLX. Thrivent Financial for Lutherans bought a new stake in shares of Roblox during the 4th quarter worth about $229,000. Blair William & Co. IL raised its holdings in shares of Roblox by 51.9% in the 4th quarter. Blair William & Co. IL now owns 9,642 shares of the company's stock worth $558,000 after purchasing an additional 3,295 shares in the last quarter. Clearbridge Investments LLC bought a new stake in shares of Roblox in the 4th quarter worth approximately $4,256,000. O Shaughnessy Asset Management LLC bought a new stake in shares of Roblox in the 4th quarter worth approximately $716,000. Finally, Wellington Management Group LLP raised its holdings in shares of Roblox by 255.1% in the 4th quarter. Wellington Management Group LLP now owns 2,124,122 shares of the company's stock worth $122,902,000 after purchasing an additional 1,526,020 shares in the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

About Roblox

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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