Roblox (NYSE:RBLX) Trading Up 8.4% on Analyst Upgrade

Roblox Corporation (NYSE:RBLX)’s stock price traded up 8.4% on Monday after Roth Mkm upgraded the stock from a neutral rating to a buy rating. Roth Mkm now has a $84.00 price target on the stock, up from their previous price target of $78.00. Roblox traded as high as $72.88 and last traded at $72.0050. 4,074,460 shares changed hands during trading, a decline of 71% from the average session volume of 14,282,514 shares. The stock had previously closed at $66.42.

Several other research analysts have also recently commented on the stock. Wedbush reiterated an “outperform” rating and issued a $110.00 target price on shares of Roblox in a report on Friday. Freedom Capital upgraded shares of Roblox from a “hold” rating to a “strong-buy” rating in a research report on Friday. JPMorgan Chase & Co. lowered their price objective on shares of Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research report on Friday. Needham & Company LLC cut their target price on shares of Roblox from $159.00 to $105.00 and set a “buy” rating on the stock in a research note on Friday. Finally, BMO Capital Markets reaffirmed an “outperform” rating on shares of Roblox in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Roblox presently has a consensus rating of “Moderate Buy” and an average price target of $119.44.

Insider Activity at Roblox

In related news, CFO Naveen K. Chopra sold 19,424 shares of the stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,849,747.52. Following the completion of the sale, the chief financial officer directly owned 337,036 shares in the company, valued at approximately $32,095,938.28. This trade represents a 5.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark Reinstra sold 16,782 shares of the business’s stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $95.24, for a total value of $1,598,317.68. Following the completion of the transaction, the insider owned 370,532 shares in the company, valued at $35,289,467.68. This trade represents a 4.33% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 357,003 shares of company stock worth $30,891,212. 12.92% of the stock is currently owned by company insiders.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Shares lifted by the broader tech-sector rally, giving RBLX immediate upward momentum. Roblox Stock Joins The Tech Sector Rally
• Positive Sentiment: Market reaction to better-than-expected Q4 results (EPS beat) helped shares gap up, a near-term catalyst for investors focused on fundamentals. Roblox (NYSE:RBLX) Shares Gap Up Following Better-Than-Expected Earnings
• Positive Sentiment: Wedbush reiterated an Outperform rating, supporting investor confidence in Roblox’s growth outlook. Roblox’s (RBLX) “Outperform” Rating Reiterated at Wedbush
• Positive Sentiment: BTIG and Bank of America reaffirmed Buy ratings, adding to a cluster of bullish analyst views that bolster sentiment. Roblox’s (RBLX) Buy Rating Reiterated at BTIG Research Bank of America Securities Reaffirms Their Buy Rating on Roblox (RBLX)
• Positive Sentiment: Needham publicly stuck with a Buy rating in a press release, supporting the consensus of buy-side coverage despite model updates. Needham Sticks to Its Buy Rating for Roblox (RBLX)
• Neutral Sentiment: A Zacks piece highlights the importance of international revenue trends for Roblox — an informational read for investors assessing growth durability and geographic diversification risks. Investing in Roblox (RBLX)? Don’t Miss Assessing Its International Revenue Trends
• Negative Sentiment: Citi cut its price target to $119 from $152 after updating its model following Q4 results; the analyst kept a Buy rating but the PT reduction signals lower near-term valuation expectations. Citi Lowers Roblox (RBLX) PT to $119 Citing Peer Multiple Compression, Updated Model
• Negative Sentiment: Needham & Company cut its price target to $105, another indicator that analysts are trimming near-term valuation despite maintaining constructive ratings. Needham & Company LLC Cuts Roblox (NYSE:RBLX) Price Target to $105.00

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently added to or reduced their stakes in RBLX. Vanguard Group Inc. raised its holdings in shares of Roblox by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company’s stock valued at $5,142,065,000 after purchasing an additional 1,020,786 shares in the last quarter. State Street Corp increased its position in Roblox by 11.0% during the third quarter. State Street Corp now owns 13,369,844 shares of the company’s stock worth $1,851,991,000 after buying an additional 1,326,575 shares during the last quarter. Geode Capital Management LLC raised its holdings in Roblox by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company’s stock valued at $988,002,000 after buying an additional 547,103 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Roblox by 7.4% in the third quarter. AQR Capital Management LLC now owns 9,697,538 shares of the company’s stock worth $1,310,719,000 after buying an additional 665,127 shares during the last quarter. Finally, Franklin Resources Inc. lifted its position in shares of Roblox by 9.8% in the third quarter. Franklin Resources Inc. now owns 6,963,693 shares of the company’s stock worth $964,611,000 after buying an additional 619,048 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox Stock Performance

The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The company has a market cap of $48.11 billion, a P/E ratio of -47.39 and a beta of 1.63. The firm has a 50 day moving average price of $80.78 and a 200-day moving average price of $107.41.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.04. Roblox had a negative return on equity of 311.88% and a negative net margin of 21.78%.The firm had revenue of $1.42 billion during the quarter, compared to analyst estimates of $2.08 billion. During the same period in the previous year, the company earned ($0.33) EPS. The company’s revenue for the quarter was up 122.6% on a year-over-year basis. On average, research analysts predict that Roblox Corporation will post -1.49 EPS for the current year.

About Roblox

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.