Wedbush Upgrades Roblox (NYSE:RBLX) to "Strong-Buy"

Wedbush upgraded shares of Roblox (NYSE:RBLX - Free Report) to a strong-buy rating in a report released on Tuesday morning,Zacks.com reports.

A number of other brokerages have also commented on RBLX. Wells Fargo & Company lifted their price target on Roblox from $78.00 to $116.00 and gave the company an "overweight" rating in a research note on Friday, June 27th. Morgan Stanley lowered their price objective on Roblox from $75.00 to $70.00 and set an "overweight" rating for the company in a research report on Thursday, April 17th. Roth Mkm raised their price objective on Roblox from $72.00 to $74.00 and gave the stock a "neutral" rating in a research report on Friday, May 2nd. FBN Securities started coverage on Roblox in a research report on Friday, March 28th. They set a "sector perform" rating and a $65.00 price objective for the company. Finally, Benchmark raised their price objective on Roblox from $71.00 to $77.00 and gave the stock a "buy" rating in a research report on Friday, May 2nd. One analyst has rated the stock with a sell rating, six have assigned a hold rating, seventeen have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, Roblox presently has an average rating of "Moderate Buy" and a consensus target price of $83.52.

Roblox Stock Performance

NYSE RBLX traded up $1.17 during trading on Tuesday, reaching $103.57. The company's stock had a trading volume of 3,215,401 shares, compared to its average volume of 8,041,105. The firm has a 50 day moving average price of $86.58 and a 200 day moving average price of $70.08. Roblox has a 12 month low of $35.30 and a 12 month high of $106.17. The company has a debt-to-equity ratio of 3.39, a quick ratio of 1.02 and a current ratio of 1.02.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, May 1st. The company reported ($0.32) EPS for the quarter, topping analysts' consensus estimates of ($0.41) by $0.09. The company had revenue of $1.04 billion for the quarter, compared to analysts' expectations of $1.14 billion. Roblox had a negative return on equity of 442.68% and a negative net margin of 22.94%. Roblox's revenue was up 30.6% on a year-over-year basis. During the same quarter last year, the business earned ($0.43) earnings per share. Sell-side analysts expect that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 1,375,002 shares of the company's stock in a transaction that occurred on Monday, May 5th. The stock was sold at an average price of $72.19, for a total transaction of $99,261,394.38. Following the completion of the transaction, the chief executive officer owned 221,983 shares of the company's stock, valued at $16,024,952.77. This represents a 86.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Over the last three months, insiders sold 6,868,857 shares of company stock worth $604,140,707. Corporate insiders own 12.92% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Gordian Capital Singapore Pte Ltd lifted its position in Roblox by 74.8% during the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company's stock valued at $32,000 after buying an additional 240 shares during the period. Larson Financial Group LLC increased its stake in shares of Roblox by 819.0% in the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company's stock worth $34,000 after acquiring an additional 516 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new position in Roblox during the 1st quarter valued at about $39,000. Colonial Trust Co SC bought a new stake in Roblox during the fourth quarter worth about $41,000. Finally, Rakuten Securities Inc. grew its holdings in Roblox by 25.6% in the fourth quarter. Rakuten Securities Inc. now owns 958 shares of the company's stock worth $55,000 after purchasing an additional 195 shares during the period. Hedge funds and other institutional investors 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.