Roblox (NYSE:RBLX) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Roblox (NYSE:RBLX) had its target price hoisted by Morgan Stanley from $65.00 to $75.00 in a report published on Monday morning,Benzinga reports. The firm currently has an overweight rating on the stock.

RBLX has been the subject of several other reports. Raymond James restated a “strong-buy” rating and issued a $60.00 price objective on shares of Roblox in a report on Friday, November 22nd. Barclays boosted their price target on shares of Roblox from $40.00 to $50.00 and gave the company an “equal weight” rating in a report on Friday, November 1st. HSBC initiated coverage on shares of Roblox in a report on Thursday, December 12th. They set a “buy” rating and a $63.00 price objective on the stock. Piper Sandler upped their target price on Roblox from $54.00 to $65.00 and gave the stock an “overweight” rating in a report on Friday, November 1st. Finally, The Goldman Sachs Group lifted their price target on Roblox from $45.00 to $55.00 and gave the company a “neutral” rating in a report on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, fifteen 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 an average rating of “Moderate Buy” and a consensus target price of $56.62.

Roblox Price Performance

Roblox stock opened at $61.31 on Monday. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98. The stock has a market cap of $37.25 billion, a price-to-earnings ratio of -37.38 and a beta of 1.43. The firm has a 50-day moving average of $56.17 and a two-hundred day moving average of $46.94. Roblox has a 1 year low of $29.55 and a 1 year high of $63.58.

Roblox (NYSE:RBLX) last announced its quarterly earnings results 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. The firm had revenue of $919.00 million during the quarter, compared to analyst estimates of $1.02 billion. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. Roblox’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.45) earnings per share. On average, research analysts forecast that Roblox will post -1.56 earnings per share for the current year.

Insider Activity at Roblox

In other news, CAO Amy Marie Rawlings sold 2,186 shares of the stock in a transaction on Monday, November 4th. The shares were sold at an average price of $52.90, for a total value of $115,639.40. Following the sale, the chief accounting officer now owns 91,062 shares in the company, valued at $4,817,179.80. This represents a 2.34 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Manuel Bronstein sold 44,888 shares of the firm’s stock in a transaction 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 of the company’s stock, valued at approximately $34,401,692.66. This trade represents a 7.26 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,254,601 shares of company stock valued at $65,622,735 in the last ninety days. Company insiders own 22.15% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Pallas Capital Advisors LLC boosted its stake in shares of Roblox by 101.5% in the fourth quarter. Pallas Capital Advisors LLC now owns 20,911 shares of the company’s stock worth $1,210,000 after buying an additional 10,535 shares during the last quarter. Friedenthal Financial acquired a new position in Roblox in the fourth quarter valued at approximately $763,000. Claro Advisors LLC purchased a new stake in Roblox in the 4th quarter worth approximately $205,000. Wealth Enhancement Advisory Services LLC grew its stake in shares of Roblox by 1.1% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 35,249 shares of the company’s stock worth $2,040,000 after purchasing an additional 398 shares during the period. Finally, Everence Capital Management Inc. purchased a new position in shares of Roblox during the 4th quarter valued at approximately $927,000. 94.46% of the stock is 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.