Roblox Corporation (NYSE:RBLX) saw its price target increase from $159.00 to $171.00 by Bank of America, as outlined in a research note published on Monday. The financial institution maintains a “buy” rating on the stock, reflecting optimism about the company’s future performance.
Other analysts have echoed this positive sentiment in recent reports. Benchmark, for instance, raised its price target from $77.00 to $150.00, granting the stock a “buy” rating. Similarly, Piper Sandler adjusted its target from $105.00 to $138.00 with an “overweight” rating. BTIG Research also set a price target of $131.00 while maintaining a “buy” rating. In contrast, Raymond James Financial downgraded its rating from “strong-buy” to “outperform” but raised the target from $81.00 to $130.00. Finally, BMO Capital Markets increased its price target from $135.00 to $150.00 while rating the stock as “outperform.”
Overall, twenty analysts have rated Roblox with a “buy” rating, while four have issued a “hold” and two have recommended a “sell.” According to MarketBeat.com, the consensus rating stands at “Moderate Buy” with a consensus price target of $121.96.
Roblox Stock Overview
Shares of Roblox opened at $128.56 on Monday. The company’s financial metrics include a debt-to-equity ratio of 2.94, a quick ratio of 0.97, and a current ratio also at 0.97. With a market capitalization of $82.93 billion, the stock has a price-to-earnings ratio of -89.90 and a beta of 1.62. Over the past year, Roblox’s stock has fluctuated from a low of $37.50 to a high of $150.59. The 50-day moving average currently sits at $120.47, while the 200-day moving average is at $89.38.
In its latest quarterly earnings report released on July 31, 2023, Roblox reported an earnings per share (EPS) of ($0.41), falling short of analysts’ expectations of ($0.37) by $0.04. Despite the EPS miss, the company achieved a revenue of $1.44 billion, exceeding estimates of $1.20 billion and marking a 50.5% increase compared to the same quarter last year. The company has set guidance for the fiscal year 2025 at a projected EPS, with analysts forecasting an EPS of ($1.49) for the current year.
Insider Trading and Institutional Investments
In related news, Director Anthony P. Lee sold 111,112 shares of Roblox on August 1, 2023, at an average price of $131.01, amounting to a total value of $14,556,783.12. This transaction was disclosed in a filing with the Securities and Exchange Commission. Additionally, insider Mark Reinstra sold 150,000 shares on June 16, 2023, at an average price of $99.75, totaling $14,962,500.00. Following these sales, Reinstra retained 389,489 shares, valued at $38,851,527.75, reflecting a 27.80% decrease in their ownership.
Over the past quarter, insiders have sold 2,053,908 shares worth $216,385,384. Insiders currently hold 12.92% of the company’s stock.
Institutional investors have also been active in adjusting their stakes in Roblox. Total Investment Management Inc. acquired a new position valued at $29,000 in the second quarter. Other firms such as Whipplewood Advisors LLC and ORG Partners LLC have also made new acquisitions, worth $34,000 and $33,000, respectively. Kiker Wealth Management LLC significantly increased its holdings by 2,646.7%, now owning 412 shares valued at $43,000. Currently, approximately 94.46% of Roblox’s stock is held by hedge funds and institutional investors.
Roblox Corporation continues to develop and operate its online entertainment platform, offering tools that allow developers to create 3D experiences while engaging users worldwide. The recent shifts in analyst ratings and insider trading activities reflect the ongoing dynamic nature of its stock market presence.
