Wedbush Reiterates “Outperform” Rating for Roblox (NYSE:RBLX)

Roblox (NYSE:RBLX)‘s stock had its “outperform” rating reiterated by research analysts at Wedbush in a report released on Wednesday, Benzinga reports. They currently have a $49.00 target price on the stock. Wedbush’s target price would suggest a potential upside of 18.36% from the company’s previous close.

Other analysts have also issued reports about the stock. Roth Mkm boosted their target price on shares of Roblox from $35.00 to $42.00 and gave the company a “neutral” rating in a research report on Monday, July 29th. Piper Sandler boosted their target price on shares of Roblox from $48.00 to $54.00 and gave the company an “overweight” rating in a research report on Wednesday. Wolfe Research started coverage on shares of Roblox in a research report on Tuesday, July 16th. They set a “peer perform” rating for the company. Wells Fargo & Company upped their price target on shares of Roblox from $41.00 to $43.00 and gave the stock an “overweight” rating in a research report on Monday, July 8th. Finally, Macquarie upped their price target on shares of Roblox from $46.00 to $50.00 and gave the stock an “outperform” rating in a research report on Monday, August 5th. Eight investment analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, Roblox currently has a consensus rating of “Moderate Buy” and a consensus target price of $46.14.

Roblox Price Performance

Shares of NYSE RBLX opened at $41.40 on Wednesday. Roblox has a 1 year low of $29.55 and a 1 year high of $48.43. The firm has a 50-day moving average of $42.67 and a 200 day moving average of $38.80. The company has a debt-to-equity ratio of 9.04, a current ratio of 1.03 and a quick ratio of 1.03.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, August 1st. The company reported ($0.32) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.07. The company had revenue of $893.50 million during the quarter, compared to analysts’ expectations of $897.88 million. Roblox had a negative net margin of 34.12% and a negative return on equity of 1,187.59%. Roblox’s revenue was up 31.2% on a year-over-year basis. During the same period last year, the company posted ($0.46) EPS. Research analysts anticipate that Roblox will post -1.59 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Michael Guthrie sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $38.82, for a total value of $1,164,600.00. Following the sale, the chief financial officer now directly owns 374,633 shares in the company, valued at approximately $14,543,253.06. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other news, CFO Michael Guthrie sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $38.82, for a total value of $1,164,600.00. Following the sale, the chief financial officer now directly owns 374,633 shares in the company, valued at approximately $14,543,253.06. This trade represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO David Baszucki sold 166,666 shares of Roblox stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $43.55, for a total transaction of $7,258,304.30. Following the completion of the sale, the chief executive officer now owns 135,761 shares of the company’s stock, valued at $5,912,391.55. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 625,673 shares of company stock worth $27,331,806. Corporate insiders own 22.15% of the company’s stock.

Institutional Trading of Roblox

A number of institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in Roblox by 10.4% during the 1st quarter. Vanguard Group Inc. now owns 51,082,302 shares of the company’s stock valued at $1,950,322,000 after acquiring an additional 4,818,022 shares during the period. Ieq Capital LLC lifted its stake in Roblox by 27.6% during the 1st quarter. Ieq Capital LLC now owns 12,409,924 shares of the company’s stock valued at $473,811,000 after acquiring an additional 2,684,713 shares during the period. Dragoneer Investment Group LLC lifted its stake in Roblox by 26.9% during the 2nd quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock valued at $437,039,000 after acquiring an additional 2,488,044 shares during the period. Greenvale Capital LLP acquired a new stake in Roblox during the 2nd quarter valued at approximately $89,304,000. Finally, Marshall Wace LLP acquired a new stake in Roblox during the 2nd quarter valued at approximately $87,543,000. 91.08% of the stock is currently owned by institutional investors and hedge funds.

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.