Wells Fargo & Company Forecasts Strong Price Appreciation for Roblox (NYSE:RBLX) Stock

Roblox (NYSE:RBLX - Get Free Report) had its price target raised by research analysts at Wells Fargo & Company from $58.00 to $76.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 15.90% from the stock's previous close.

Other analysts have also recently issued reports about the stock. CICC Research assumed coverage on shares of Roblox in a research note on Tuesday. They set an "outperform" rating for the company. BMO Capital Markets reaffirmed an "outperform" rating and set a $62.00 target price (up from $56.00) on shares of Roblox in a report on Friday, November 1st. HSBC started coverage on shares of Roblox in a report on Thursday, December 12th. They set a "buy" rating and a $63.00 price target on the stock. Needham & Company LLC lifted their price objective on shares of Roblox from $50.00 to $60.00 and gave the company a "buy" rating in a report on Friday, November 1st. Finally, Barclays increased their target price on shares of Roblox from $40.00 to $50.00 and gave the stock an "equal weight" rating in a research note on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $57.48.

Roblox Stock Up 0.5 %

Shares of RBLX traded up $0.31 during trading hours on Thursday, hitting $65.57. The company had a trading volume of 5,765,466 shares, compared to its average volume of 6,708,201. Roblox has a one year low of $29.55 and a one year high of $66.51. The company's fifty day moving average price is $56.85 and its two-hundred day moving average price is $47.36. The company has a market capitalization of $39.84 billion, a PE ratio of -39.98 and a beta of 1.43. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 5.64.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, October 31st. The company reported ($0.37) EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analyst estimates of $1.02 billion. During the same period in the prior year, the firm posted ($0.45) earnings per share. The company's quarterly revenue was up 9.5% on a year-over-year basis. As a group, equities analysts forecast that Roblox will post -1.56 earnings per share for the current fiscal year.

Insider Activity

In other Roblox news, CEO David Baszucki sold 166,668 shares of the firm's stock in a transaction on Friday, October 25th. The stock was sold at an average price of $42.15, for a total value of $7,025,056.20. Following the completion of the sale, the chief executive officer now directly owns 135,755 shares of the company's stock, valued at $5,722,073.25. This trade represents a 55.11 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Anthony P. Lee sold 250,000 shares of the firm's stock in a transaction that occurred on Thursday, January 16th. The stock was sold at an average price of $65.04, for a total transaction of $16,260,000.00. Following the sale, the director now owns 6,254,137 shares of the company's stock, valued at $406,769,070.48. This represents a 3.84 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,504,601 shares of company stock worth $81,882,735 over the last three months. Insiders own 22.15% of the company's stock.

Institutional Trading of Roblox

Hedge funds and other institutional investors have recently modified their holdings of the business. DekaBank Deutsche Girozentrale boosted its stake in Roblox by 5.9% during the second quarter. DekaBank Deutsche Girozentrale now owns 64,067 shares of the company's stock worth $2,440,000 after buying an additional 3,547 shares during the period. Envestnet Asset Management Inc. boosted its position in shares of Roblox by 17.6% during the 2nd quarter. Envestnet Asset Management Inc. now owns 64,557 shares of the company's stock worth $2,402,000 after purchasing an additional 9,665 shares during the period. Axxcess Wealth Management LLC increased its holdings in Roblox by 40.5% in the 2nd quarter. Axxcess Wealth Management LLC now owns 14,853 shares of the company's stock valued at $553,000 after purchasing an additional 4,285 shares during the last quarter. Amalgamated Bank increased its holdings in Roblox by 9.2% in the 2nd quarter. Amalgamated Bank now owns 34,530 shares of the company's stock valued at $1,285,000 after purchasing an additional 2,908 shares during the last quarter. Finally, Vanguard Personalized Indexing Management LLC raised its position in Roblox by 10.3% in the second quarter. Vanguard Personalized Indexing Management LLC now owns 25,787 shares of the company's stock valued at $960,000 after purchasing an additional 2,408 shares during the period. 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.