Roblox (NYSE:RBLX) Coverage Initiated at DA Davidson

DA Davidson started coverage on shares of Roblox (NYSE:RBLX) in a research report issued on Wednesday, MarketBeat.com reports. The firm set a “neutral” rating and a $65.00 price target on the stock. DA Davidson’s price objective would indicate a potential downside of 1.47% from the stock’s current price.

A number of other analysts have also issued reports on the company. Barclays lowered their price target on Roblox from $130.00 to $115.00 and set an “equal weight” rating on the stock in a research note on Friday, February 6th. Deutsche Bank Aktiengesellschaft set a $115.00 price objective on Roblox in a report on Tuesday, January 20th. Wells Fargo & Company set a $97.00 target price on shares of Roblox in a report on Monday, February 9th. Macquarie Infrastructure increased their target price on shares of Roblox from $158.00 to $164.00 and gave the company an “outperform” rating in a research report on Tuesday, November 4th. Finally, Morgan Stanley lowered their price target on shares of Roblox from $155.00 to $140.00 and set an “overweight” rating on the stock in a research report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $117.35.

Roblox Stock Performance

NYSE:RBLX opened at $65.97 on Wednesday. The company has a fifty day moving average of $72.46 and a two-hundred day moving average of $100.10. Roblox has a fifty-two week low of $50.10 and a fifty-two week high of $150.59. The stock has a market capitalization of $43.65 billion, a PE ratio of -42.56 and a beta of 1.62. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, topping analysts’ consensus estimates of ($0.49) by $0.04. The business had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $2.08 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The company’s quarterly revenue was up 122.6% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.33) earnings per share. As a group, research analysts forecast that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In other news, CEO David Baszucki sold 10,834 shares of the stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $61.63, for a total value of $667,699.42. Following the completion of the sale, the chief executive officer owned 800,539 shares of the company’s stock, valued at $49,337,218.57. This represents a 1.34% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Mark Reinstra sold 60,000 shares of the firm’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $63.94, for a total transaction of $3,836,400.00. Following the sale, the insider owned 394,322 shares of the company’s stock, valued at $25,212,948.68. This represents a 13.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 703,144 shares of company stock valued at $51,681,640 in the last three months. 12.92% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in RBLX. Reyes Financial Architecture Inc. raised its position in Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after purchasing an additional 194 shares during the period. Pilgrim Partners Asia Pte Ltd purchased a new position in Roblox during the third quarter worth about $26,000. Fideuram Asset Management Ireland dac purchased a new position in Roblox during the fourth quarter worth about $27,000. Total Investment Management Inc. acquired a new position in Roblox during the second quarter worth $29,000. Finally, GW&K Investment Management LLC boosted its position in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after buying an additional 161 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

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.