Roblox (NYSE:RBLX) Upgraded to Buy at Jefferies Financial Group

Roblox (NYSE:RBLX – Get Rating) was upgraded by equities researchers at Jefferies Financial Group from a “hold” rating to a “buy” rating in a research note issued on Friday, The Fly reports. The firm presently has a $48.00 price objective on the stock, up from their prior price objective of $30.00. Jefferies Financial Group’s target price would indicate a potential upside of 19.85% from the stock’s current price. Jefferies Financial Group also issued estimates for Roblox’s Q2 2023 earnings at ($0.51) EPS and Q3 2023 earnings at ($0.47) EPS.

A number of other analysts have also recently issued reports on the company. Deutsche Bank Aktiengesellschaft boosted their target price on Roblox from $45.00 to $55.00 in a report on Thursday, February 16th. Oppenheimer started coverage on Roblox in a report on Wednesday, January 25th. They set a “market perform” rating for the company. Wedbush boosted their target price on Roblox from $32.00 to $37.00 and gave the stock a “neutral” rating in a report on Thursday, February 16th. BTIG Research boosted their price target on Roblox from $48.00 to $55.00 and gave the stock a “buy” rating in a research report on Thursday, February 16th. Finally, MKM Partners reduced their price target on Roblox from $40.00 to $35.00 in a research report on Friday, November 11th. Seven investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and ten have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $37.75.

Roblox Stock Up 0.3 %

Shares of NYSE:RBLX opened at $40.05 on Friday. The company has a debt-to-equity ratio of 3.24, a quick ratio of 1.55 and a current ratio of 1.55. Roblox has a 1 year low of $21.65 and a 1 year high of $53.88. The stock has a market capitalization of $22.18 billion, a P/E ratio of -25.84 and a beta of 1.72. The stock has a 50-day simple moving average of $36.48 and a 200-day simple moving average of $36.32.

Roblox (NYSE:RBLX – Get Rating) last issued its earnings results on Wednesday, February 15th. The company reported ($0.48) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.55) by $0.07. Roblox had a negative return on equity of 200.01% and a negative net margin of 41.54%. The business had revenue of $899.40 million during the quarter, compared to analysts’ expectations of $884.71 million. During the same quarter in the previous year, the business earned ($0.25) EPS. The company’s revenue for the quarter was up 17.0% on a year-over-year basis. Equities analysts forecast that Roblox will post -1.84 earnings per share for the current year.

Insider Buying and Selling at Roblox

In related news, insider Craig Donato sold 2,000 shares of the firm’s stock in a transaction on Thursday, December 15th. The stock was sold at an average price of $29.33, for a total transaction of $58,660.00. Following the transaction, the insider now directly owns 1,152,491 shares in the company, valued at $33,802,561.03. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other Roblox news, CFO Michael Guthrie sold 5,603 shares of Roblox stock in a transaction that occurred on Tuesday, February 21st. The stock was sold at an average price of $37.85, for a total value of $212,073.55. Following the completion of the transaction, the chief financial officer now directly owns 187,632 shares in the company, valued at $7,101,871.20. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Craig Donato sold 2,000 shares of the company’s stock in a transaction that occurred on Thursday, December 15th. The shares were sold at an average price of $29.33, for a total value of $58,660.00. Following the transaction, the insider now directly owns 1,152,491 shares of the company’s stock, valued at $33,802,561.03. The disclosure for this sale can be found here. Insiders have sold a total of 619,378 shares of company stock valued at $23,576,761 in the last three months. Corporate insiders own 28.22% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bard Financial Services Inc. increased its holdings in shares of Roblox by 0.3% in the 3rd quarter. Bard Financial Services Inc. now owns 76,865 shares of the company’s stock worth $2,755,000 after acquiring an additional 250 shares during the period. Wetherby Asset Management Inc. increased its holdings in shares of Roblox by 7.4% in the 1st quarter. Wetherby Asset Management Inc. now owns 4,366 shares of the company’s stock worth $202,000 after acquiring an additional 300 shares during the period. EP Wealth Advisors LLC increased its holdings in shares of Roblox by 3.0% in the 1st quarter. EP Wealth Advisors LLC now owns 11,902 shares of the company’s stock worth $550,000 after acquiring an additional 342 shares during the period. Allworth Financial LP increased its holdings in shares of Roblox by 30.6% in the 4th quarter. Allworth Financial LP now owns 1,494 shares of the company’s stock worth $43,000 after acquiring an additional 350 shares during the period. Finally, Janney Montgomery Scott LLC increased its holdings in shares of Roblox by 4.9% in the 4th quarter. Janney Montgomery Scott LLC now owns 8,725 shares of the company’s stock worth $248,000 after acquiring an additional 405 shares during the period. Institutional investors and hedge funds own 72.36% of the company’s stock.

About Roblox

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Roblox Corporation develops and operates an online entertainment platform. The company 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 digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform.