Morgan Stanley Issues Positive Forecast for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its target price increased by equities research analysts at Morgan Stanley from $65.00 to $75.00 in a research note issued on Monday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s price objective indicates a potential upside of 20.58% from the company’s previous close.

A number of other equities analysts have also issued reports on the stock. 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 research report on Friday, November 1st. HSBC assumed coverage on shares of Roblox in a research report on Thursday, December 12th. They set a “buy” rating and a $63.00 price objective on the stock. Wedbush reaffirmed an “outperform” rating and issued a $49.00 target price on shares of Roblox in a report on Friday, October 25th. BMO Capital Markets reissued an “outperform” rating and set a $62.00 price target (up previously from $56.00) on shares of Roblox in a report on Friday, November 1st. Finally, Raymond James reaffirmed a “strong-buy” rating and set a $60.00 price objective on shares of Roblox in a research note on Friday, November 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 stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $56.62.

Roblox Price Performance

Shares of NYSE:RBLX opened at $62.20 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. Roblox has a 12 month low of $29.55 and a 12 month high of $63.58. The firm has a market capitalization of $37.79 billion, a P/E ratio of -37.93 and a beta of 1.43. The company’s fifty day moving average price is $56.39 and its 200 day moving average price is $47.12.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, October 31st. The company reported ($0.37) earnings per share for the quarter, beating the consensus estimate of ($0.39) by $0.02. The business had revenue of $919.00 million during the quarter, compared to the consensus estimate of $1.02 billion. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. The business’s quarterly revenue was up 9.5% on a year-over-year basis. During the same period in the previous year, the business earned ($0.45) EPS. As a group, sell-side analysts predict that Roblox will post -1.56 earnings per share for the current fiscal year.

Insider Activity

In other news, CFO Michael Guthrie sold 10,000 shares of Roblox stock in a transaction on Thursday, October 31st. The stock was sold at an average price of $49.44, for a total transaction of $494,400.00. Following the completion of the transaction, the chief financial officer now owns 352,844 shares of the company’s stock, valued at $17,444,607.36. The trade was a 2.76 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Mark Reinstra sold 16,480 shares of the business’s stock in a transaction dated Wednesday, November 20th. The stock was sold at an average price of $51.43, for a total transaction of $847,566.40. Following the completion of the sale, the insider now owns 278,161 shares in the company, valued at $14,305,820.23. This represents a 5.59 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 1,254,601 shares of company stock worth $65,622,735. Company insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of RBLX. ValueAct Holdings L.P. grew its holdings 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 buying an additional 7,835,921 shares during the last quarter. FMR LLC boosted its stake in shares of 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 acquiring an additional 4,115,286 shares during the last quarter. Dragoneer Investment Group LLC increased its position in Roblox by 26.9% during the 2nd quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock worth $437,039,000 after purchasing an additional 2,488,044 shares in the last quarter. Whale Rock Capital Management LLC acquired a new position in Roblox in the 3rd quarter valued at about $107,491,000. Finally, Greenvale Capital LLP acquired a new stake in shares of Roblox during the 2nd quarter worth about $89,304,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.