Roblox Corporation (NYSE:RBLX) Short Interest Update

Key Points

• Roblox short interest surged 68.7% to 23.4 million shares as of August 31, representing approximately 3.9% of shares outstanding and 2.1 days to cover.
• Roblox reported a quarterly loss of $0.26 per share, beating estimates, while revenue rose 8.3% year over year to $1.47 billion but fell short of expectations.
• Analyst sentiment remains mixed, with the stock holding an overall “Hold” rating and a consensus price target of $60.36; insiders have sold roughly 185,236 shares worth $7.5 million over the past 90 days.

Roblox Corporation (NYSE:RBLX - Get Free Report) saw a significant growth in short interest in August. As of August 31st, there was short interest totaling 23,416,828 shares, a growth of 68.7% from the August 15th total of 13,884,449 shares. Based on an average trading volume of 10,912,896 shares, the days-to-cover ratio is presently 2.1 days. Approximately 3.9% of the company's shares are short sold.

Roblox Price Performance

NYSE RBLX opened at $47.43 on Thursday. 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 has a 12-month low of $33.88 and a 12-month high of $142.00. The company has a market capitalization of $31.78 billion, a PE ratio of -33.17 and a beta of 1.47. The firm's 50 day moving average is $43.97 and its 200-day moving average is $49.68.

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

Insider Buying and Selling

In other news, insider Mark Reinstra sold 5,773 shares of the firm's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $44.80, for a total transaction of $258,630.40. Following the sale, the insider owned 392,291 shares of the company's stock, valued at $17,574,636.80. This trade represents a 1.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sean Buckley sold 4,321 shares of Roblox stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $38.68, for a total value of $167,136.28. Following the transaction, the insider owned 87,213 shares in the company, valued at $3,373,398.84. This trade represents a 4.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 185,236 shares of company stock valued at $7,538,642. 10.05% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Hanson & Doremus Investment Management bought a new position in shares of Roblox in the 1st quarter valued at about $25,000. Fideuram Asset Management Ireland dac acquired a new position in Roblox during the fourth quarter valued at approximately $27,000. Basecamp Wealth Advisors LLC boosted its position in Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock valued at $29,000 after purchasing an additional 252 shares during the last quarter. Root Financial Partners LLC grew its stake in Roblox by 100.7% in the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after purchasing an additional 283 shares in the last quarter. Finally, Western Wealth Management LLC bought a new position in Roblox in the first quarter valued at approximately $33,000. 94.46% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Oppenheimer reiterated an "outperform" rating on shares of Roblox in a report on Friday, September 11th. Wolfe Research lowered shares of Roblox from an "outperform" rating to a "hold" rating in a research note on Friday, July 31st. Arete Research set a $95.00 target price on Roblox and gave the stock a "buy" rating in a report on Monday, June 29th. Piper Sandler reissued a "neutral" rating and issued a $47.00 price target (down from $50.00) on shares of Roblox in a research note on Friday, July 31st. Finally, Wall Street Zen upgraded Roblox from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, fourteen have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $60.36.

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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