Roblox Corporation (NYSE:RBLX) Given Average Recommendation of “Hold” by Brokerages

Roblox Corporation (NYSE:RBLX) has received a consensus rating of “Hold” from the twenty-eight analysts that are presently covering the company, MarketBeat reports. One research analyst has rated the stock with a sell recommendation, fourteen have issued a hold recommendation, twelve have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $87.0741.

A number of analysts recently commented on the company. Bank of America lowered Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price objective for the company. in a research report on Friday, May 1st. Canaccord Genuity Group lowered their price objective on Roblox from $140.00 to $80.00 and set a “buy” rating for the company in a research report on Friday, May 1st. JPMorgan Chase & Co. lowered their price objective on Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a research report on Friday, February 6th. Oppenheimer assumed coverage on Roblox in a research report on Friday, May 1st. They issued an “outperform” rating for the company. Finally, Needham & Company LLC assumed coverage on Roblox in a research report on Friday, May 1st. They issued a “buy” rating and a $60.00 price objective for the company.

Roblox Stock Performance

Shares of NYSE:RBLX opened at $43.45 on Friday. Roblox has a twelve month low of $40.15 and a twelve month high of $150.59. The firm has a market cap of $29.18 billion, a PE ratio of -27.50 and a beta of 1.44. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89. The business has a fifty day moving average of $51.54 and a 200-day moving average of $67.61.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.74 billion. During the same period last year, the company posted ($0.32) earnings per share. The firm’s quarterly revenue was up 43.4% compared to the same quarter last year. On average, equities research analysts predict that Roblox will post -1.4 EPS for the current fiscal year.

Roblox announced that its Board of Directors has approved a share buyback program on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 50,628 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $2,292,435.84. Following the completion of the sale, the chief executive officer directly owned 852,214 shares in the company, valued at $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Amy Marie Rawlings sold 2,895 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.24, for a total value of $130,969.80. Following the completion of the sale, the chief accounting officer owned 35,238 shares of the company’s stock, valued at approximately $1,594,167.12. The trade was a 7.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 183,471 shares of company stock valued at $8,930,068. 10.05% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors have recently modified their holdings of RBLX. Norges Bank acquired a new position in shares of Roblox during the 4th quarter worth about $435,424,000. Vanguard Group Inc. grew its position in shares of Roblox by 5.6% during the 3rd quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock worth $8,648,911,000 after buying an additional 3,284,073 shares during the period. SRS Investment Management LLC acquired a new position in shares of Roblox during the 4th quarter worth about $238,065,000. Amundi grew its position in shares of Roblox by 83.7% during the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock worth $326,586,000 after buying an additional 2,631,074 shares during the period. Finally, Capital International Investors grew its position in shares of Roblox by 7.3% during the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock worth $2,589,282,000 after buying an additional 2,184,439 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

Roblox Company Profile

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.