Roblox Corporation (NYSE:RBLX) Receives Consensus Rating of “Hold” from Brokerages
by Teresa Graham · The Cerbat GemRoblox Corporation (NYSE:RBLX – Get Free Report) has earned an average recommendation of “Hold” from the thirty-one analysts that are currently covering the stock, Marketbeat reports. Three investment analysts have rated the stock with a sell recommendation, fourteen have assigned a hold recommendation, thirteen have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $59.2143.
Several research firms have issued reports on RBLX. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. Citigroup decreased their target price on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a report on Monday, August 3rd. Deutsche Bank Aktiengesellschaft lowered Roblox from a “buy” rating to a “hold” rating and cut their target price for the stock from $56.00 to $38.00 in a research report on Friday, July 31st. Raymond James Financial reaffirmed a “buy” rating on shares of Roblox in a report on Friday. Finally, Barclays decreased their price target on Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research report on Monday, August 3rd.
Read Our Latest Report on Roblox
Insider Activity at Roblox
In related news, insider Mark Reinstra sold 5,773 shares of the company’s stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $44.80, for a total value of $258,630.40. Following the completion of the sale, the insider owned 392,291 shares in the company, valued at approximately $17,574,636.80. This represents a 1.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory Baszucki sold 16,666 shares of the firm’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $40.47, for a total transaction of $674,473.02. Following the completion of the transaction, the director directly owned 1,261,169 shares of the company’s stock, valued at $51,039,509.43. This represents a 1.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 185,236 shares of company stock valued at $7,538,642. Corporate insiders own 10.05% of the company’s stock.
Institutional Trading of Roblox
A number of hedge funds have recently modified their holdings of the business. California State Teachers Retirement System lifted its holdings in shares of Roblox by 5,370.1% during the 2nd quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after buying an additional 48,541,681 shares during the last quarter. Norges Bank acquired a new position in Roblox in the fourth quarter worth approximately $435,424,000. SRS Investment Management LLC bought a new position in Roblox during the fourth quarter valued at approximately $238,065,000. Amundi lifted its stake in Roblox by 83.7% in the first quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after acquiring an additional 2,631,074 shares during the last quarter. Finally, Capital International Investors lifted its stake in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after acquiring an additional 2,184,439 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.
Roblox Stock Up 1.6%
NYSE RBLX opened at $45.61 on Tuesday. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The company’s 50 day simple moving average is $44.37 and its 200 day simple moving average is $50.18. Roblox has a 12 month low of $33.88 and a 12 month high of $142.00. The company has a market capitalization of $30.56 billion, a P/E ratio of -31.90 and a beta of 1.47.
Roblox (NYSE:RBLX – Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating the consensus estimate of ($0.34) by $0.08. The business had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business’s quarterly revenue was up 8.3% on a year-over-year basis. During the same period in the prior year, the business earned ($0.41) earnings per share. Equities research analysts expect that Roblox will post -1.39 earnings per share for the current fiscal year.
Roblox announced that its board has initiated a stock buyback program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to buy up to 9.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s management believes its shares are undervalued.
Trending Headlines about Roblox
Here are the key news stories impacting Roblox this week:
- Positive Sentiment: Expanded distribution could broaden Roblox’s reach. Roblox plans to let creators distribute games as standalone applications across mobile devices, PCs and consoles, as well as beyond the main Roblox app. Easier access could increase game discovery, usage and monetization. Reuters article
- Positive Sentiment: New AI and development tools may strengthen the creator ecosystem. RDC announcements included AI-assisted game-building tools, expanded non-player-character capabilities and other technology intended to help developers create more sophisticated experiences. Greater creator productivity could increase the supply and quality of content on the platform. TechCrunch article
- Positive Sentiment: Creator payments are being made more flexible. Roblox is preparing a dedicated Roblox Wallet and Roblox Card, with a system that would allow eligible creators to receive payments daily. Faster access to earnings could improve creator retention and encourage more development on the platform. Roblox wallet article
- Neutral Sentiment: Trading momentum was modestly favorable. A market recap noted that RBLX outperformed the broader market during the latest session, but the stock remains below its 200-day moving average. Analysts’ consensus rating is Hold, with an average price target of $59.21. Zacks article
- Negative Sentiment: Short interest rose sharply. Short interest increased 68.7% between mid- and late August to 23.4 million shares, representing 3.9% of shares outstanding. This signals growing bearish positioning and could increase volatility.
- Negative Sentiment: Insider selling adds a cautionary signal. Insider Mark Reinstra sold $258,630 of stock under a pre-arranged Rule 10b5-1 plan. Roblox also remains unprofitable, with analysts expecting a full-year loss and its latest revenue falling short of consensus estimates.
About Roblox
Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.
Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.
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