Roblox Co. (NYSE:RBLX) Sees Significant Decrease in Short Interest

Roblox Co. (NYSE:RBLX) was the recipient of a large decline in short interest in October. As of October 31st, there was short interest totalling 26,970,000 shares, a decline of 16.8% from the October 15th total of 32,430,000 shares. Currently, 5.1% of the company’s stock are sold short. Based on an average daily volume of 7,700,000 shares, the days-to-cover ratio is currently 3.5 days.

Roblox Price Performance

RBLX stock opened at $50.73 on Monday. Roblox has a 52-week low of $29.55 and a 52-week high of $55.10. The stock’s fifty day simple moving average is $45.43 and its 200-day simple moving average is $40.56. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64. The stock has a market capitalization of $30.82 billion, a price-to-earnings ratio of -30.93 and a beta of 1.56.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.39) by $0.02. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. The business had revenue of $919.00 million for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter last year, the firm earned ($0.45) earnings per share. The business’s revenue was up 9.5% on a year-over-year basis. Equities research analysts expect that Roblox will post -1.56 EPS for the current year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on RBLX. JPMorgan Chase & Co. boosted their target price on Roblox from $51.00 to $62.00 and gave the company an “overweight” rating in a report on Friday, November 1st. Wedbush reaffirmed an “outperform” rating and set a $49.00 price objective on shares of Roblox in a research note on Friday, October 25th. BMO Capital Markets reaffirmed an “outperform” rating and set a $62.00 price objective (up from $56.00) on shares of Roblox in a research note on Friday, November 1st. Wells Fargo & Company upped their price objective on Roblox from $54.00 to $58.00 and gave the company an “overweight” rating in a research note on Friday, November 1st. Finally, Morgan Stanley raised Roblox from an “equal weight” rating to an “overweight” rating and upped their price objective for the company from $38.00 to $65.00 in a research note on Monday, November 4th. Seven analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.30.

Insider Buying and Selling

In other news, CFO Michael Guthrie sold 21,789 shares of the company’s stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $40.35, for a total transaction of $879,186.15. Following the completion of the transaction, the chief financial officer now directly owns 352,844 shares of the company’s stock, valued at approximately $14,237,255.40. This represents a 5.82 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Amy Marie Rawlings sold 2,186 shares of the company’s stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $52.90, for a total value of $115,639.40. Following the transaction, the chief accounting officer now directly owns 91,062 shares of the company’s stock, valued at approximately $4,817,179.80. This represents a 2.34 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 970,373 shares of company stock valued at $44,143,589 in the last three months. 22.15% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Geode Capital Management LLC raised its position in shares of Roblox by 5.2% in the 3rd quarter. Geode Capital Management LLC now owns 8,332,563 shares of the company’s stock worth $368,003,000 after buying an additional 408,915 shares during the period. M&T Bank Corp raised its position in Roblox by 7.0% in the third quarter. M&T Bank Corp now owns 20,105 shares of the company’s stock valued at $889,000 after purchasing an additional 1,324 shares during the period. Nomura Asset Management Co. Ltd. raised its position in Roblox by 7.4% in the third quarter. Nomura Asset Management Co. Ltd. now owns 130,750 shares of the company’s stock valued at $5,787,000 after purchasing an additional 8,970 shares during the period. Y Intercept Hong Kong Ltd purchased a new position in Roblox in the third quarter valued at about $1,106,000. Finally, ValueAct Holdings L.P. raised its position in Roblox by 340.7% in the third quarter. ValueAct Holdings L.P. now owns 10,135,921 shares of the company’s stock valued at $448,616,000 after purchasing an additional 7,835,921 shares during the period. 91.08% of the stock is owned by hedge funds and other institutional investors.

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.