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

Key Points

• Analysts have a consensus “Hold” rating on Roblox, with 15 holds, 12 buys, 3 sells and 1 strong buy across 31 brokerages. The average 12-month price target is $60.89, though several firms recently downgraded the stock or lowered their targets.
• Roblox reported a quarterly loss of $0.26 per share, better than the expected $0.34 loss, while revenue rose 8.3% year over year to $1.47 billion but missed estimates of $1.60 billion.
• The company authorized a $3 billion stock-repurchase program, allowing it to buy back up to 9.5% of outstanding shares. Insiders have sold 161,983 shares worth about $7.46 million over the past 90 days, primarily to cover tax obligations tied to equity awards.

Roblox Corporation (NYSE:RBLX - Get Free Report) has received a consensus recommendation of "Hold" from the thirty-one brokerages that are presently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a sell rating, fifteen have issued a hold rating, twelve have given a buy rating and one has given a strong buy rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $60.8929.

A number of analysts have weighed in on the company. Wedbush cut Roblox from an "outperform" rating to a "neutral" rating and lowered their price target for the company from $65.00 to $40.00 in a research report on Friday, July 31st. Wall Street Zen raised shares of Roblox from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Wolfe Research downgraded Roblox from an "outperform" rating to a "hold" rating in a research report on Friday, July 31st. BTIG Research downgraded shares of Roblox from a "neutral" rating to a "sell" rating and set a $30.00 target price on the stock. in a research report on Friday, July 31st. Finally, Oppenheimer cut their price target on Roblox from $82.00 to $50.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 4th.

Insider Activity

In related news, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider directly owned 349,964 shares in the company, valued at $15,842,870.28. This trade represents a 3.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,275 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $782,212.00. Following the completion of the sale, the insider owned 438,198 shares in the company, valued at $19,841,605.44. This represents a 3.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 161,983 shares of company stock valued at $7,455,828. Insiders own 10.05% of the company's stock.

Institutional Investors Weigh In On Roblox

Several large investors have recently bought and sold shares of RBLX. NewEdge Advisors LLC boosted its position in shares of Roblox by 2.3% during the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company's stock worth $597,000 after purchasing an additional 231 shares in the last quarter. Sivia Capital Partners LLC raised its stake in Roblox by 70.2% during the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company's stock worth $1,368,000 after buying an additional 5,363 shares during the period. CW Advisors LLC acquired a new stake in Roblox during the 2nd quarter worth $272,000. Baird Financial Group Inc. lifted its holdings in Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock worth $767,000 after acquiring an additional 102 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new position in Roblox during the second quarter worth about $438,000. Institutional investors own 94.46% of the company's stock.

Roblox Stock Performance

NYSE RBLX opened at $37.94 on Friday. Roblox has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The company's fifty day moving average is $47.64 and its two-hundred day moving average is $53.98. The firm has a market capitalization of $25.42 billion, a price-to-earnings ratio of -26.53 and a beta of 1.46.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results 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 net margin of 17.60% and a negative return on equity of 292.85%. The firm 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) EPS. The business's revenue for the quarter was up 8.3% on a year-over-year basis. Equities research analysts forecast that Roblox will post -1.39 EPS for the current year.

Roblox declared that its board has authorized a stock repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company's management 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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