Roblox Corporation (NYSE:RBLX) Stock Has Average Target Price of $60.79 According to Analysts

Key Points

• Analysts have a consensus “Hold” rating on Roblox, with 13 buys, 13 holds, 4 sells and 1 strong buy among 31 analysts. The average 12-month price target is $60.79, compared with the stock’s reported opening price of $44.12.
• Roblox reported a quarterly loss of $0.26 per share, beating expectations for a $0.34 loss, while revenue rose 8.3% year over year to $1.47 billion but fell short of the $1.60 billion consensus estimate.
• Insiders sold 185,236 shares worth approximately $7.3 million over the past three months, though the article says the reported executive sales were made to cover tax obligations tied to vested equity awards. Institutional investors remain major shareholders, owning 94.46% of the stock.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have been given an average recommendation of "Hold" by the thirty-one research firms that are covering the company, Marketbeat reports. Four investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating, thirteen have given a buy rating and one has issued a strong buy rating on the company. The average 1-year price target among brokers that have covered the stock in the last year is $60.79.

A number of analysts recently weighed in on the stock. Wedbush increased their price target on shares of Roblox from $40.00 to $48.00 and gave the stock a "neutral" rating in a research note on Monday, September 14th. Arete Research set a $95.00 price objective on shares of Roblox and gave the company a "buy" rating in a research note on Monday, June 29th. Morgan Stanley reduced their target price on shares of Roblox from $62.00 to $55.00 and set an "overweight" rating for the company in a report on Friday, July 31st. Roth Capital increased their target price on shares of Roblox from $55.00 to $60.00 and gave the stock a "buy" rating in a research note on Tuesday, September 15th. Finally, Moffett Nathanson reissued a "neutral" rating and set a $40.00 price target on shares of Roblox in a report on Monday, August 3rd.

Roblox Price Performance

NYSE:RBLX opened at $44.12 on Friday. Roblox has a 52 week low of $33.88 and a 52 week high of $141.95. The stock's fifty day moving average is $42.34 and its two-hundred day moving average is $48.35. The company has a market capitalization of $29.56 billion, a P/E ratio of -30.85 and a beta of 1.47. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82.

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

Insider Buying and Selling

In other news, CEO David Baszucki sold 52,568 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $1,995,481.28. Following the completion of the sale, the chief executive officer owned 799,646 shares in the company, valued at approximately $30,354,562.16. This trade represents a 6.17% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen Chopra sold 17,509 shares of Roblox 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 completion of the sale, the chief financial officer directly owned 363,249 shares in the company, valued at approximately $13,788,932.04. The trade was a 4.60% decrease in their position. 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 three months, insiders have sold 185,236 shares of company stock worth $7,291,652. 10.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. SkyView Investment Advisors LLC bought a new position in shares of Roblox in the second quarter worth $245,000. National Pension Service raised its stake in shares of Roblox by 34.0% during the second quarter. National Pension Service now owns 1,243,524 shares of the company's stock valued at $67,623,000 after purchasing an additional 315,244 shares in the last quarter. NorthRock Partners LLC raised its stake in shares of Roblox by 13.7% during the second quarter. NorthRock Partners LLC now owns 30,413 shares of the company's stock valued at $1,654,000 after purchasing an additional 3,660 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Roblox by 18.6% in the second quarter. NewEdge Advisors LLC now owns 16,977 shares of the company's stock worth $923,000 after purchasing an additional 2,662 shares during the period. Finally, IFP Advisors Inc grew its position in Roblox by 25.5% in the 2nd quarter. IFP Advisors Inc now owns 33,527 shares of the company's stock valued at $1,823,000 after buying an additional 6,808 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Company Profile

Roblox Corporation NYSE: RBLX operates an online entertainment platform where users can create, share and experience interactive 3D content. The platform hosts user-generated games and other virtual experiences across genres, including entertainment, social activities, education and simulated environments.

Roblox provides development tools through Roblox Studio, enabling creators to build and publish experiences, digital items and other content. Users can customize avatars, interact with others and access the platform across supported computers, mobile devices, gaming consoles and virtual reality systems.

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