Roblox Corporation (NYSE:RBLX) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts hold a consensus “Hold” rating on Roblox, with 15 holds, 12 buys, 3 sells and 1 strong buy among 31 firms. The average 12-month price target is $60.89, though several firms recently downgraded the stock or cut their targets.
• Roblox reported a quarterly loss of $0.26 per share, beating expectations, while revenue rose 8.3% year over year to $1.47 billion but fell short of the $1.60 billion consensus estimate. Analysts expect a full-year loss of approximately $1.39 per share.
• The company approved a $3 billion share-repurchase program, covering up to 9.5% of outstanding shares. Institutional investors own 94.46% of Roblox, while insiders have sold about $7.28 million of stock over the past 90 days, primarily to cover tax obligations tied to vested equity awards.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have earned a consensus rating of "Hold" from the thirty-one research firms that are presently covering the company, Marketbeat Ratings reports. Three analysts have rated the stock with a sell rating, fifteen have issued a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year price objective among analysts that have issued a report on the stock in the last year is $60.8929.

A number of equities research analysts have recently commented on the company. B. Riley Financial lowered their price objective on Roblox from $80.00 to $45.00 and set a "buy" rating for the company in a research report on Monday, August 3rd. BTIG Research lowered Roblox from a "neutral" rating to a "sell" rating and set a $30.00 price target on the stock. in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft cut Roblox from a "buy" rating to a "hold" rating and lowered their price target for the company from $56.00 to $38.00 in a report on Friday, July 31st. Raymond James Financial assumed coverage on shares of Roblox in a research note on Monday, June 29th. They set a "market perform" rating for the company. Finally, Arete Research set a $95.00 target price on shares of Roblox and gave the stock a "buy" rating in a research report on Monday, June 29th.

Insider Activity at Roblox

In other Roblox news, insider Mark Reinstra sold 17,934 shares of Roblox stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the transaction, the insider owned 398,064 shares in the company, valued at $15,110,509.44. This trade represents a 4.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew Kaufman sold 14,904 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $565,755.84. Following the sale, the insider directly owned 335,060 shares of the company's stock, valued at $12,718,877.60. This represents a 4.26% decrease in their ownership of the stock. 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. Insiders have sold a total of 179,463 shares of company stock valued at $7,280,012 over the last 90 days. 10.05% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its stake in shares of 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 purchasing an additional 48,541,681 shares in the last quarter. Capital International Investors raised its holdings in Roblox by 7.3% in the fourth 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 during the period. Morgan Stanley raised its holdings in Roblox by 8.1% in the fourth quarter. Morgan Stanley now owns 20,728,914 shares of the company's stock valued at $1,679,664,000 after buying an additional 1,555,549 shares during the period. State Street Corp lifted its position in Roblox by 3.3% during the fourth quarter. State Street Corp now owns 13,812,362 shares of the company's stock valued at $1,119,216,000 after buying an additional 442,518 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in Roblox by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock valued at $988,002,000 after buying an additional 547,103 shares in the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Roblox Stock Performance

Shares of RBLX opened at $43.21 on Tuesday. 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 company has a market capitalization of $28.95 billion, a price-to-earnings ratio of -30.22 and a beta of 1.47. The company's 50 day simple moving average is $45.24 and its 200 day simple moving average is $50.60. Roblox has a 1 year low of $33.88 and a 1 year high of $142.00.

Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping the consensus estimate of ($0.34) by $0.08. The firm had revenue of $1.47 billion during 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%. Roblox's revenue for the quarter was up 8.3% on a year-over-year basis. During the same period in the previous year, the company earned ($0.41) EPS. On average, sell-side analysts predict that Roblox will post -1.39 EPS for the current year.

Roblox declared that its Board of Directors has approved a stock repurchase program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares buyback programs are usually a sign 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.

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