Roblox's (RBLX) "Buy" Rating Reaffirmed at BTIG Research

Key Points

• BTIG reiterated a "Buy" rating on Roblox with a $122 price target, implying roughly a 120% upside; the stock's consensus on MarketBeat is a "Moderate Buy" with a $116.76 average target.
• Roblox's latest quarter beat EPS estimates (‑$0.45 vs. ‑$0.49) but materially missed revenue ($1.42B vs. $2.08B expected) despite revenue rising 122.6% year‑over‑year, and the company remains unprofitable with a negative net margin.
• Insiders have sold 527,018 shares (~$37.1M) over the past three months, including notable sales by Arvind Chakravarthy and director Gregory Baszucki, though insiders still own about 12.9% of the company.

Roblox (NYSE:RBLX - Get Free Report)'s stock had its "buy" rating reissued by BTIG Research in a research report issued on Monday,Benzinga reports. They presently have a $122.00 price objective on the stock. BTIG Research's price objective suggests a potential upside of 119.63% from the company's previous close.

A number of other equities research analysts have also recently weighed in on RBLX. Roth Mkm upgraded Roblox from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $78.00 to $84.00 in a research note on Monday, February 9th. BMO Capital Markets reissued an "outperform" rating on shares of Roblox in a report on Friday, February 6th. Freedom Capital raised Roblox from a "hold" rating to a "strong-buy" rating in a report on Friday, February 6th. Jefferies Financial Group set a $85.00 target price on Roblox in a report on Thursday, January 15th. Finally, DA Davidson initiated coverage on Roblox in a report on Wednesday, March 4th. They issued a "neutral" rating and a $65.00 target price on the stock. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $116.76.

Roblox Price Performance

Shares of NYSE RBLX opened at $55.55 on Monday. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65. Roblox has a twelve month low of $51.23 and a twelve month high of $150.59. The stock has a 50 day moving average of $61.48 and a two-hundred day moving average of $86.65. The stock has a market cap of $36.75 billion, a P/E ratio of -35.84 and a beta of 1.67.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, beating 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 analysts' expectations of $2.08 billion. During the same quarter in the previous year, the business earned ($0.33) earnings per share. The firm's revenue for the quarter was up 122.6% on a year-over-year basis. On average, research analysts forecast that Roblox will post -1.49 earnings per share for the current year.

Insider Activity

In related news, insider Arvind Chakravarthy sold 40,646 shares of the company's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total transaction of $2,732,630.58. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Gregory Baszucki sold 16,666 shares of the company's stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the transaction, the director directly owned 1,302,834 shares in the company, valued at $75,499,230.30. This represents a 1.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 527,018 shares of company stock valued at $37,145,491 over the last three months. 12.92% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. Pilgrim Partners Asia Pte Ltd acquired a new position in Roblox during the third quarter worth $26,000. Whittier Trust Co. of Nevada Inc. acquired a new position in Roblox during the third quarter worth $37,000. Total Investment Management Inc. acquired a new position in Roblox during the second quarter worth $29,000. Root Financial Partners LLC acquired a new position in Roblox during the third quarter worth $38,000. Finally, Sunbelt Securities Inc. grew its holdings in Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after acquiring an additional 105 shares during the period. Institutional investors and hedge funds 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.

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