Roblox Corporation (NYSE:RBLX) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Roblox has a consensus analyst rating of "Hold", based on coverage from 28 analysts; the average 12-month price target is about $87.07.
• Recent analyst actions were mixed but mostly cautious, with several firms cutting price targets and Piper Sandler downgrading the stock to neutral.
• The company reported a narrower-than-expected quarterly loss and strong 43.4% revenue growth, but it also announced a $3 billion share repurchase program after shares fell sharply from their 52-week high.

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

Several equities research analysts have recently issued reports on RBLX shares. The Goldman Sachs Group lowered their price target on Roblox from $125.00 to $65.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Piper Sandler downgraded Roblox from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $100.00 to $50.00 in a research report on Monday, May 4th. DA Davidson lowered their price target on Roblox from $47.50 to $45.00 and set a "neutral" rating on the stock in a research report on Friday, May 22nd. Needham & Company LLC started coverage on Roblox in a research report on Friday, May 1st. They issued a "buy" rating and a $60.00 price target on the stock. Finally, Wells Fargo & Company lowered their price target on Roblox from $97.00 to $78.00 and set an "overweight" rating on the stock in a research report on Monday, April 6th.

Roblox Price Performance

NYSE RBLX opened at $47.10 on Friday. The firm has a market cap of $31.63 billion, a P/E ratio of -29.81 and a beta of 1.50. The stock's 50-day moving average is $52.48 and its two-hundred day moving average is $69.51. Roblox has a fifty-two week low of $40.15 and a fifty-two week high of $150.59. 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 (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The firm's revenue was up 43.4% compared to the same quarter last year. During the same period last year, the business posted ($0.32) earnings per share. On average, analysts anticipate that Roblox will post -1.4 earnings per share for the current fiscal year.

Roblox announced that its board has authorized a share repurchase program on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Insider Buying and Selling at Roblox

In related news, insider Sean Jack Buckley sold 4,744 shares of Roblox stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $46.36, for a total transaction of $219,931.84. Following the sale, the insider directly owned 97,141 shares of the company's stock, valued at $4,503,456.76. This trade represents a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 14,356 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was 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 approximately $15,842,870.28. This trade represents a 3.94% decrease in their ownership of the stock. 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. Insiders sold 183,471 shares of company stock valued at $8,930,068 over the last quarter. Company insiders own 10.05% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Reyes Financial Architecture Inc. lifted its stake in Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after purchasing an additional 194 shares during the period. Hanson & Doremus Investment Management bought a new position in Roblox during the first quarter worth about $25,000. Fideuram Asset Management Ireland dac bought a new position in Roblox during the fourth quarter worth about $27,000. GW&K Investment Management LLC lifted its stake in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after purchasing an additional 161 shares during the period. Finally, Indiana Trust & Investment Management Co bought a new position in Roblox during the fourth quarter worth about $32,000. Institutional investors own 94.46% of the company's stock.

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.