Wedbush Issues Positive Forecast for Roblox (NYSE:RBLX) Stock Price

Key Points

• Wedbush has raised its price target for Roblox (NYSE:RBLX) from $142.00 to $165.00, reflecting a potential upside of 26.67% from the current trading price.
• Roblox reported a quarterly revenue of $1.44 billion, exceeding analyst estimates, but still missed earnings expectations with a reported loss of ($0.41) per share.
• Roblox's stock has received strong support from several analysts, with multiple firms giving it "buy" ratings and indicating a consensus target price of $104.73.

Roblox (NYSE:RBLX - Get Free Report) had its price target increased by equities researchers at Wedbush from $142.00 to $165.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Wedbush's target price would suggest a potential upside of 26.67% from the stock's previous close.

A number of other equities research analysts also recently weighed in on the company. Needham & Company LLC lifted their target price on Roblox from $79.00 to $159.00 and gave the stock a "buy" rating in a research report on Friday. BTIG Research set a $131.00 price objective on Roblox and gave the company a "buy" rating in a report on Monday. Oppenheimer reaffirmed an "outperform" rating and set a $125.00 price objective (up from $80.00) on shares of Roblox in a report on Wednesday, June 18th. Wells Fargo & Company lifted their price objective on Roblox from $78.00 to $116.00 and gave the company an "overweight" rating in a report on Friday, June 27th. Finally, BMO Capital Markets lifted their price objective on Roblox from $95.00 to $135.00 and gave the company an "outperform" rating in a report on Tuesday, July 22nd. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and nineteen have given a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $104.73.

Roblox Stock Down 5.5%

RBLX stock opened at $130.26 on Friday. Roblox has a twelve month low of $35.30 and a twelve month high of $150.59. The company has a market cap of $88.35 billion, a PE ratio of -98.09 and a beta of 1.60. The business's 50-day simple moving average is $104.20 and its 200 day simple moving average is $78.13. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.39.

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

Insiders Place Their Bets

In related news, CEO David Baszucki sold 1,375,002 shares of the business's stock in a transaction that occurred on Monday, May 5th. The shares were sold at an average price of $72.19, for a total value of $99,261,394.38. Following the completion of the transaction, the chief executive officer owned 221,983 shares in the company, valued at $16,024,952.77. The trade was 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. In the last three months, insiders have sold 6,651,690 shares of company stock valued at $593,440,562. Insiders own 12.92% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its position in Roblox by 8.3% in the 1st quarter. Vanguard Group Inc. now owns 57,640,317 shares of the company's stock worth $3,359,854,000 after purchasing an additional 4,400,624 shares during the last quarter. FMR LLC raised its position in Roblox by 89.4% in the 4th quarter. FMR LLC now owns 39,658,528 shares of the company's stock worth $2,294,642,000 after purchasing an additional 18,715,837 shares during the last quarter. Ieq Capital LLC raised its position in Roblox by 13.8% in the 1st quarter. Ieq Capital LLC now owns 18,889,973 shares of the company's stock worth $1,101,097,000 after purchasing an additional 2,297,350 shares during the last quarter. AQR Capital Management LLC raised its position in Roblox by 217.4% in the 1st quarter. AQR Capital Management LLC now owns 8,770,427 shares of the company's stock worth $504,387,000 after purchasing an additional 6,007,322 shares during the last quarter. Finally, Geode Capital Management LLC raised its position in Roblox by 3.0% in the 4th quarter. Geode Capital Management LLC now owns 8,579,173 shares of the company's stock worth $495,564,000 after purchasing an additional 246,610 shares during the last quarter. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.