Roblox Corporation (NYSE:RBLX) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• "Moderate Buy" consensus from 27 analysts (17 buys, 7 holds, 2 sells, 1 strong buy) with an average 12‑month target of $116.76.
• Several major firms have recently cut targets — Needham to $105, Wells Fargo to $78, Barclays to $115 and JPMorgan to $75 — indicating downward revisions despite the overall buy-leaning consensus.
• Insiders sold 527,018 shares (~$37.1M) last quarter (including director Gregory Baszucki), and Roblox remains unprofitable despite a slight EPS beat (‑$0.45 vs. ‑$0.49) while revenue of $1.42B missed estimates; shares trade near the one‑year low (~$55) with a market cap around $36.8B.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) have earned a consensus rating of "Moderate Buy" from the twenty-seven research firms that are covering the firm, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, seven have issued a hold recommendation, seventeen have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $116.76.

Several equities research analysts have recently weighed in on RBLX shares. Needham & Company LLC decreased their price objective on shares of Roblox from $159.00 to $105.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Wells Fargo & Company decreased their price objective on shares of Roblox from $97.00 to $78.00 and set an "overweight" rating for the company in a research report on Monday, April 6th. Barclays cut their target price on Roblox from $130.00 to $115.00 and set an "equal weight" rating on the stock in a research report on Friday, February 6th. Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research report on Friday, March 27th. Finally, JPMorgan Chase & Co. cut their target price on Roblox from $100.00 to $75.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th.

Insider Activity at Roblox

In related news, Director Gregory Baszucki sold 16,666 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total transaction of $965,794.70. Following the transaction, the director owned 1,302,834 shares in the company, valued at $75,499,230.30. The trade was a 1.26% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Arvind Chakravarthy sold 40,646 shares of the business's stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The SEC filing for this sale provides additional information. Insiders have sold 527,018 shares of company stock worth $37,145,491 over the last quarter. 12.92% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Reyes Financial Architecture Inc. increased its position in Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock valued at $25,000 after buying an additional 194 shares in the last quarter. Pilgrim Partners Asia Pte Ltd bought a new stake in Roblox in the 3rd quarter valued at about $26,000. Fideuram Asset Management Ireland dac bought a new stake in Roblox in the 4th quarter valued at about $27,000. Total Investment Management Inc. bought a new stake in Roblox in the 2nd quarter valued at about $29,000. Finally, GW&K Investment Management LLC increased its position in Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after buying an additional 161 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Price Performance

Shares of RBLX opened at $55.55 on Friday. Roblox has a 1 year low of $51.23 and a 1 year high of $150.59. The company has a debt-to-equity ratio of 2.65, a current ratio of 0.96 and a quick ratio of 0.96. The company has a market capitalization of $36.75 billion, a price-to-earnings ratio of -35.84 and a beta of 1.67. The business has a 50-day moving average of $61.48 and a 200-day moving average of $87.29.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.49) by $0.04. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. During the same period last year, the company earned ($0.33) earnings per share. The firm's revenue was up 122.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Roblox will post -1.49 earnings per share for the current year.

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.

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