Roblox (NYSE:RBLX) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Roblox (NYSE:RBLX) had its target price raised by research analysts at JPMorgan Chase & Co. from $62.00 to $72.00 in a research note issued to investors on Friday,Benzinga reports. The brokerage currently has an “overweight” rating on the stock. JPMorgan Chase & Co.‘s price objective indicates a potential upside of 16.60% from the stock’s previous close.

Several other brokerages have also commented on RBLX. BMO Capital Markets reiterated an “outperform” rating and issued a $62.00 target price (up previously from $56.00) on shares of Roblox in a research report on Friday, November 1st. Morgan Stanley upgraded shares of Roblox from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $38.00 to $65.00 in a research note on Monday, November 4th. Piper Sandler raised their price target on shares of Roblox from $54.00 to $65.00 and gave the stock an “overweight” rating in a research report on Friday, November 1st. Benchmark boosted their price objective 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, Needham & Company LLC raised their target price on shares of Roblox from $50.00 to $60.00 and gave the stock a “buy” rating in a report on Friday, November 1st. Seven research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $56.14.

Roblox Price Performance

Shares of NYSE RBLX opened at $61.75 on Friday. The business has a 50 day moving average price of $55.94 and a two-hundred day moving average price of $46.70. Roblox has a fifty-two week low of $29.55 and a fifty-two week high of $63.58. The firm has a market cap of $37.52 billion, a PE ratio of -37.65 and a beta of 1.43. 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 (NYSE:RBLX) last posted its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) EPS for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.02. The firm had revenue of $919.00 million for the quarter, compared to the consensus estimate of $1.02 billion. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. The firm’s revenue was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.45) EPS. Sell-side analysts expect that Roblox will post -1.56 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In other Roblox news, CEO David Baszucki sold 333,334 shares of the company’s stock in a transaction on Thursday, December 5th. The stock was sold at an average price of $57.31, for a total value of $19,103,371.54. Following the transaction, the chief executive officer now owns 129,295 shares of the company’s stock, valued at approximately $7,409,896.45. This represents a 72.05 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Mark Reinstra sold 24,000 shares of the firm’s stock in a transaction on Monday, December 23rd. The stock was sold at an average price of $59.75, for a total value of $1,434,000.00. Following the sale, the insider now directly owns 278,161 shares of the company’s stock, valued at approximately $16,620,119.75. This represents a 7.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,254,601 shares of company stock valued at $65,622,735. Corporate insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. ValueAct Holdings L.P. raised its stake in Roblox by 340.7% during the 3rd quarter. ValueAct Holdings L.P. now owns 10,135,921 shares of the company’s stock valued at $448,616,000 after purchasing an additional 7,835,921 shares during the period. FMR LLC raised its position in Roblox by 24.5% during the third quarter. FMR LLC now owns 20,942,691 shares of the company’s stock valued at $926,924,000 after buying an additional 4,115,286 shares during the period. Dragoneer Investment Group LLC lifted its stake in Roblox by 26.9% in the 2nd quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock worth $437,039,000 after acquiring an additional 2,488,044 shares in the last quarter. Whale Rock Capital Management LLC purchased a new stake in Roblox in the 3rd quarter worth about $107,491,000. Finally, Greenvale Capital LLP purchased a new position in Roblox during the 2nd quarter valued at about $89,304,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.