Roblox (NYSE:RBLX) Price Target Raised to $170.00

Key Points

• Roblox's price target was raised significantly from $76.00 to $170.00 by Morgan Stanley, indicating a potential upside of 30.27% from its previous close.
• The company's recent earnings report revealed a revenue of $1.44 billion, surpassing analyst estimates, despite a loss of ($0.41) earnings per share.
• In insider trading news, CEO David Baszucki sold nearly 28,000 shares of Roblox, representing a significant decrease in his ownership, while 94.46% of the company's stock is held by institutional investors and hedge funds.

Roblox (NYSE:RBLX - Get Free Report) had its price target increased by investment analysts at Morgan Stanley from $76.00 to $170.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 30.27% from the stock's previous close.

RBLX has been the subject of several other reports. Wells Fargo & Company increased their price target on shares of Roblox from $78.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, June 27th. Macquarie increased their price target on shares of Roblox from $76.00 to $80.00 and gave the stock an "outperform" rating in a report on Monday, May 5th. Bank of America increased their price target on shares of Roblox from $86.00 to $103.00 and gave the stock a "buy" rating in a report on Thursday, June 5th. Roth Mkm increased their price target on shares of Roblox from $72.00 to $74.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Finally, Citigroup increased their price target on shares of Roblox from $123.00 to $152.00 and gave the stock a "buy" rating in a report on Wednesday, July 23rd. One research analyst has rated the stock with a sell rating, four have issued a hold rating and nineteen have given a buy rating to the stock. According to MarketBeat, Roblox currently has a consensus rating of "Moderate Buy" and an average target price of $111.91.

Roblox Stock Performance

Shares of RBLX traded down $7.29 during mid-day trading on Friday, hitting $130.50. 3,223,560 shares of the company's stock were exchanged, compared to its average volume of 8,713,264. Roblox has a fifty-two week low of $35.30 and a fifty-two week high of $150.59. The firm has a market capitalization of $88.52 billion, a P/E ratio of -97.78 and a beta of 1.60. The business's 50 day moving average is $104.20 and its two-hundred day moving average is $78.13. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.39.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.04). The business had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.20 billion. Roblox had a negative return on equity of 442.68% and a negative net margin of 22.94%. Roblox's quarterly revenue was up 50.5% on a year-over-year basis. During the same quarter last year, the company posted ($0.32) EPS. On average, equities analysts expect that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO David Baszucki sold 27,901 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $105.19, for a total transaction of $2,934,906.19. Following the sale, the chief executive officer owned 875 shares in the company, valued at approximately $92,041.25. This trade represents a 96.96% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Matthew D. Kaufman sold 6,000 shares of the firm's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $118.51, for a total transaction of $711,060.00. Following the sale, the insider owned 307,223 shares in the company, valued at approximately $36,408,997.73. This trade represents a 1.92% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 6,651,690 shares of company stock worth $593,440,562. 12.92% of the stock is owned by insiders.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its holdings in shares of Roblox by 8.3% in the 1st quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock valued at $3,359,854,000 after purchasing an additional 4,400,624 shares during the last quarter. FMR LLC boosted its holdings in shares of Roblox by 89.4% in the 4th quarter. FMR LLC now owns 39,658,528 shares of the company's stock valued at $2,294,642,000 after purchasing an additional 18,715,837 shares during the last quarter. Ieq Capital LLC boosted its holdings in shares of Roblox by 13.8% in the 1st quarter. Ieq Capital LLC now owns 18,889,973 shares of the company's stock valued at $1,101,097,000 after purchasing an additional 2,297,350 shares during the last quarter. AQR Capital Management LLC boosted its holdings in shares of Roblox by 217.4% in the 1st quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company's stock valued at $504,387,000 after purchasing an additional 6,007,322 shares during the last quarter. Finally, Geode Capital Management LLC boosted its holdings in shares of Roblox by 3.0% in the 4th quarter. Geode Capital Management LLC now owns 8,579,173 shares of the company's stock valued at $495,564,000 after purchasing an additional 246,610 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

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.

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