Roblox Corporation (NYSE:RBLX) Given Consensus Rating of "Hold" by Analysts

Key Points

• Roblox has a consensus analyst rating of "Hold" from 28 research firms, with 12 buy ratings, 14 hold ratings, one sell, and one strong buy. The average 12-month price target is about $87.07.
• Recent analyst actions have been mixed, including upgrades to outperform from Oppenheimer and Wolfe Research, but downgrades to neutral from BTIG Research and Bank of America. DA Davidson also cut its price target to $45.
• Insider selling has been notable, with CEO David Baszucki and other executives selling shares, while Roblox also authorized a $3 billion share buyback. The company is additionally facing ongoing legal and child-safety related litigation, which could pressure sentiment.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have been assigned an average rating of "Hold" from the twenty-eight research firms that are covering the firm, MarketBeat reports. One analyst has rated the stock with a sell rating, fourteen have given a hold rating, twelve have assigned a buy rating and one has given a strong buy rating to the company. The average 1 year target price among analysts that have covered the stock in the last year is $87.0741.

A number of analysts recently issued reports on the stock. Oppenheimer assumed coverage on shares of Roblox in a report on Friday, May 1st. They set an "outperform" rating for the company. BTIG Research downgraded shares of Roblox from a "buy" rating to a "neutral" rating in a report on Friday, May 1st. Bank of America downgraded shares of Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price objective for the company. in a report on Friday, May 1st. Wolfe Research assumed coverage on shares of Roblox in a report on Friday, May 1st. They set an "outperform" rating for the company. Finally, DA Davidson decreased their price objective on shares of Roblox from $47.50 to $45.00 and set a "neutral" rating for the company in a report on Friday, May 22nd.

Insider Activity

In other Roblox news, CEO David Baszucki sold 50,628 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the completion of the transaction, the chief executive officer owned 852,214 shares in the company, valued at $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. 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 Mark Reinstra sold 18,653 shares of the stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $57.94, for a total transaction of $1,080,754.82. Following the transaction, the insider owned 455,473 shares of the company's stock, valued at $26,390,105.62. This represents a 3.93% 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. Over the last three months, insiders have sold 189,449 shares of company stock valued at $9,179,410. 10.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Cypress Wealth Services LLC bought a new stake in Roblox during the fourth quarter valued at approximately $2,373,000. Yarbrough Capital LLC lifted its position in Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company's stock valued at $4,646,000 after purchasing an additional 53,780 shares during the last quarter. Glynn Capital Management LLC bought a new stake in Roblox during the fourth quarter valued at approximately $5,706,000. Steadview Capital Management LLC bought a new stake in Roblox during the fourth quarter valued at approximately $12,884,000. Finally, Norges Bank bought a new stake in Roblox during the fourth quarter valued at approximately $435,424,000. Institutional investors own 94.46% of the company's stock.

Roblox Stock Performance

Shares of RBLX stock opened at $47.89 on Thursday. The firm has a 50-day moving average of $48.66 and a 200-day moving average of $62.86. The company has a market cap of $32.16 billion, a P/E ratio of -30.31 and a beta of 1.44. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. Roblox has a one year low of $40.15 and a one year high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter last year, the company posted ($0.32) earnings per share. The firm's quarterly revenue was up 43.4% compared to the same quarter last year. Equities research analysts forecast that Roblox will post -1.4 EPS for the current fiscal year.

Roblox announced that its board has initiated a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company's board believes its stock is undervalued.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox was recently trading higher relative to the broader market, suggesting some buyers are still supporting the shares despite the legal overhang. Roblox (RBLX) Ascends While Market Falls: Some Facts to Note
• Neutral Sentiment: Roblox continues to attract advertiser and product attention, including age-based account updates and new measurement tools, which could support the long-term platform narrative. Did New Kid-Safe Accounts and TV-Style Ad Metrics Just Shift Roblox's (RBLX) Investment Narrative?
• Negative Sentiment: Roblox faces a securities class action alleging investors were misled about organic user growth and the effects of its age-verification rollout, adding legal uncertainty for shareholders. Roblox Corporation (RBLX) Faces Securities Class Action Amid Surprise Age Verification Impact, $6.7 Billion Market Cap Wiped Out - HBBS
• Negative Sentiment: Additional law firms are urging investors to join or lead lawsuits, keeping the stock in the spotlight and reinforcing concerns about ongoing litigation risk. RBLX Investors Have Opportunity to Lead Roblox Corporation Securities Fraud Lawsuit
• Negative Sentiment: Roblox is also facing broader child-safety allegations in litigation brought with the Arkansas Attorney General, which could add reputational and regulatory pressure. The Lanier Law Firm Represents the Arkansas Attorney General in Claims Against Roblox and Discord Over a “Predatory Pipeline” Targeting Children

About Roblox

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.