Roblox Corporation (NYSE:RBLX) Receives $117.59 Average Price Target from Analysts

Key Points

• Roblox Corporation has received a consensus rating of "Moderate Buy" from 24 research firms, with an average 12-month price target of $117.59.
• The company's quarterly earnings report showed a revenue of $1.44 billion, exceeding estimates, despite an EPS report of ($0.41) which fell short of expectations.
• Insider activity revealed that CEO David Baszucki sold 687,500 shares of Roblox stock, decreasing his ownership by 76.47% within a single transaction.

Roblox Corporation (NYSE:RBLX - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the twenty-four analysts that are currently covering the stock, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, four have given a hold rating and nineteen have issued a buy rating on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $117.5909.

Several brokerages have recently commented on RBLX. Macquarie lifted their target price on Roblox from $76.00 to $80.00 and gave the stock an "outperform" rating in a research report on Monday, May 5th. The Goldman Sachs Group boosted their price objective on Roblox from $63.00 to $80.00 and gave the company a "neutral" rating in a research report on Wednesday, May 14th. Canaccord Genuity Group lifted their target price on Roblox from $125.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Raymond James Financial downgraded Roblox from a "strong-buy" rating to an "outperform" rating and lifted their target price for the company from $81.00 to $130.00 in a research note on Wednesday, July 23rd. Finally, Benchmark raised their price objective on shares of Roblox from $77.00 to $150.00 and gave the company a "buy" rating in a research report on Friday.

Roblox Stock Performance

Shares of RBLX stock traded down $3.61 during mid-day trading on Monday, hitting $127.09. 7,404,399 shares of the company's stock were exchanged, compared to its average volume of 9,643,234. The stock has a 50-day simple moving average of $106.02 and a two-hundred day simple moving average of $79.21. Roblox has a fifty-two week low of $36.07 and a fifty-two week high of $150.59. The company has a debt-to-equity ratio of 2.94, a current ratio of 0.97 and a quick ratio of 0.97.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings data on Thursday, July 31st. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.04). The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%. The business's revenue for the quarter was up 50.5% compared to the same quarter last year. During the same quarter last year, the business earned ($0.32) earnings per share. As a group, analysts predict that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Anthony P. Lee sold 66,000 shares of the business's stock in a transaction on Tuesday, August 5th. The stock was sold at an average price of $129.37, for a total transaction of $8,538,420.00. Following the sale, the director owned 279,868 shares in the company, valued at $36,206,523.16. The trade was a 19.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO David Baszucki sold 139,507 shares of the business's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $105.19, for a total value of $14,674,741.33. Following the completion of the transaction, the chief executive officer directly owned 211,559 shares in the company, valued at $22,253,891.21. This represents a 39.74% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 5,428,815 shares of company stock valued at $515,475,414. Company insiders own 12.92% of the company's stock.

Hedge Funds Weigh In On Roblox

A number of institutional investors have recently bought and sold shares of RBLX. Gordian Capital Singapore Pte Ltd increased its holdings in shares of Roblox by 74.8% in the 4th quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company's stock worth $32,000 after buying an additional 240 shares during the last quarter. ORG Partners LLC bought a new stake in shares of Roblox in the 2nd quarter valued at about $33,000. Larson Financial Group LLC lifted its position in Roblox by 819.0% during the first quarter. Larson Financial Group LLC now owns 579 shares of the company's stock valued at $34,000 after acquiring an additional 516 shares during the last quarter. Whipplewood Advisors LLC purchased a new position in shares of Roblox in the second quarter worth $34,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Roblox in the first quarter worth $39,000. 94.46% of the stock is owned by institutional investors.

Roblox Company Profile

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.