Macquarie Initiates Coverage on Roblox (NYSE:RBLX)

Equities research analysts at Macquarie began coverage on shares of Roblox (NYSE:RBLX) in a note issued to investors on Friday, MarketBeat.com reports. The brokerage set an “outperform” rating and a $46.00 price target on the stock. Macquarie’s target price would indicate a potential upside of 31.05% from the company’s current price.

Several other equities research analysts have also commented on the stock. Roth Mkm reaffirmed a “neutral” rating and set a $35.00 price target (down previously from $55.00) on shares of Roblox in a research report on Tuesday, May 14th. Moffett Nathanson raised shares of Roblox from a “sell” rating to a “neutral” rating and reduced their target price for the stock from $31.00 to $26.00 in a report on Friday, May 10th. Piper Sandler reissued an “overweight” rating and issued a $40.00 target price (down from $56.00) on shares of Roblox in a report on Friday, May 10th. JPMorgan Chase & Co. raised shares of Roblox from a “neutral” rating to an “overweight” rating and increased their target price for the stock from $41.00 to $48.00 in a report on Tuesday, April 23rd. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $53.00 target price on shares of Roblox in a report on Monday, April 22nd. Seven investment analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $42.14.

Roblox Price Performance

RBLX opened at $35.10 on Friday. Roblox has a 52-week low of $24.88 and a 52-week high of $47.20. The stock has a market capitalization of $20.75 billion, a P/E ratio of -18.87 and a beta of 1.58. The company has a debt-to-equity ratio of 16.04, a quick ratio of 1.07 and a current ratio of 1.07. The company’s 50-day simple moving average is $35.28 and its two-hundred day simple moving average is $39.04.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, May 9th. The company reported ($0.43) EPS for the quarter, beating the consensus estimate of ($0.53) by $0.10. Roblox had a negative net margin of 39.19% and a negative return on equity of 1,110.40%. The firm had revenue of $923.76 million during the quarter, compared to analyst estimates of $918.85 million. During the same quarter in the prior year, the firm earned ($0.44) EPS. The business’s revenue for the quarter was up 19.4% compared to the same quarter last year. As a group, analysts predict that Roblox will post -1.7 EPS for the current year.

Insider Buying and Selling

In related news, CAO Amy Marie Rawlings sold 3,910 shares of the firm’s stock in a transaction on Tuesday, May 21st. The stock was sold at an average price of $32.56, for a total value of $127,309.60. Following the completion of the sale, the chief accounting officer now directly owns 98,457 shares in the company, valued at $3,205,759.92. The sale was disclosed in a filing with the SEC, which can be accessed through this link. In related news, CAO Amy Marie Rawlings sold 3,910 shares of the firm’s stock in a transaction on Tuesday, May 21st. The stock was sold at an average price of $32.56, for a total value of $127,309.60. Following the completion of the sale, the chief accounting officer now directly owns 98,457 shares in the company, valued at $3,205,759.92. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO David Baszucki sold 166,666 shares of the firm’s stock in a transaction on Monday, June 10th. The stock was sold at an average price of $35.12, for a total value of $5,853,309.92. Following the completion of the sale, the chief executive officer now owns 142,260 shares of the company’s stock, valued at $4,996,171.20. The disclosure for this sale can be found here. Insiders sold a total of 459,887 shares of company stock worth $16,410,887 over the last three months. 22.15% of the stock is owned by insiders.

Institutional Trading of Roblox

A number of hedge funds and other institutional investors have recently bought and sold shares of RBLX. Allspring Global Investments Holdings LLC purchased a new stake in Roblox in the fourth quarter worth $25,000. Washington Trust Advisors Inc. purchased a new stake in Roblox in the first quarter worth $39,000. Blue Trust Inc. increased its stake in Roblox by 566.5% in the fourth quarter. Blue Trust Inc. now owns 1,073 shares of the company’s stock worth $49,000 after purchasing an additional 912 shares during the period. Future Financial Wealth Managment LLC purchased a new stake in Roblox in the first quarter worth $52,000. Finally, Benjamin F. Edwards & Company Inc. increased its stake in Roblox by 306.3% in the first quarter. Benjamin F. Edwards & Company Inc. now owns 1,483 shares of the company’s stock worth $56,000 after purchasing an additional 1,118 shares during the period. Hedge funds and other institutional investors own 91.08% of the company’s stock.

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.