Roblox (NYSE:RBLX) Coverage Initiated at HSBC

HSBC initiated coverage on shares of Roblox (NYSE:RBLX) in a report issued on Thursday, MarketBeat Ratings reports. The firm set a “buy” rating and a $63.00 price target on the stock. HSBC’s price target would suggest a potential upside of 5.72% from the stock’s previous close.

Other analysts have also issued reports about the company. BTIG Research raised their price objective on Roblox from $51.00 to $56.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Canaccord Genuity Group raised their price target on shares of Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Morgan Stanley upgraded shares of Roblox from an “equal weight” rating to an “overweight” rating and upped their price objective for the stock from $38.00 to $65.00 in a research report on Monday, November 4th. Benchmark raised their target price on shares of Roblox from $44.00 to $60.00 and gave the company a “buy” rating in a research report on Friday, November 1st. Finally, BMO Capital Markets reiterated an “outperform” rating and set a $62.00 price target (up from $56.00) on shares of Roblox in a report on Friday, November 1st. Seven investment analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $55.67.

Roblox Price Performance

RBLX stock opened at $59.59 on Thursday. The company’s 50-day moving average price is $48.88 and its two-hundred day moving average price is $43.16. The firm has a market cap of $36.20 billion, a P/E ratio of -36.34 and a beta of 1.50. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64. Roblox has a 12 month low of $29.55 and a 12 month high of $61.05.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.02. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. The business had revenue of $919.00 million for the quarter, compared to analysts’ expectations of $1.02 billion. The firm’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the firm posted ($0.45) earnings per share. On average, analysts anticipate that Roblox will post -1.56 earnings per share for the current fiscal year.

Insider Activity

In other Roblox news, insider Manuel Bronstein sold 44,888 shares of the stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $60.01, for a total transaction of $2,693,728.88. Following the transaction, the insider now directly owns 573,266 shares in the company, valued at approximately $34,401,692.66. This represents a 7.26 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO David Baszucki sold 333,334 shares of Roblox stock in a transaction on Thursday, December 5th. The shares were sold at an average price of $57.31, for a total transaction of $19,103,371.54. Following the completion of the sale, the chief executive officer now owns 129,295 shares of the company’s stock, valued at $7,409,896.45. This represents a 72.05 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,457,267 shares of company stock valued at $74,422,648. 22.15% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roblox

Large investors have recently bought and sold shares of the stock. Swedbank AB boosted its position in shares of Roblox by 0.5% during the 2nd quarter. Swedbank AB now owns 53,297 shares of the company’s stock worth $1,983,000 after purchasing an additional 285 shares in the last quarter. Coronation Fund Managers Ltd. bought a new position in Roblox in the second quarter worth approximately $2,663,000. Blue Trust Inc. grew its stake in Roblox by 1,836.5% in the second quarter. Blue Trust Inc. now owns 3,931 shares of the company’s stock valued at $150,000 after acquiring an additional 3,728 shares during the period. Sumitomo Mitsui Trust Holdings Inc. increased its holdings in shares of Roblox by 17.6% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 9,984,817 shares of the company’s stock valued at $371,535,000 after acquiring an additional 1,491,726 shares in the last quarter. Finally, First Horizon Advisors Inc. raised its position in shares of Roblox by 44.9% during the second quarter. First Horizon Advisors Inc. now owns 2,593 shares of the company’s stock worth $96,000 after purchasing an additional 804 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

About Roblox

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.