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

Roblox (NYSE:RBLX - Get Free Report) had its target price lifted by investment analysts at Morgan Stanley from $65.00 to $75.00 in a report issued on Monday,Benzinga reports. The firm presently has an "overweight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 22.33% from the stock's previous close.

Other equities research analysts have also issued reports about the stock. JPMorgan Chase & Co. boosted their target price on shares of Roblox from $62.00 to $72.00 and gave the stock an "overweight" rating in a report on Friday. BTIG Research boosted their price objective on shares of Roblox from $51.00 to $56.00 and gave the stock a "buy" rating in a research note on Friday, November 1st. The Goldman Sachs Group raised their target price on Roblox from $45.00 to $55.00 and gave the stock a "neutral" rating in a research report on Friday, November 1st. Benchmark upped their price target on 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 restated an "outperform" rating and set a $62.00 price objective (up from $56.00) on shares of Roblox in a research 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 issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $56.62.

Roblox Price Performance

Shares of NYSE RBLX traded down $0.51 during midday trading on Monday, reaching $61.31. 7,359,279 shares of the company were exchanged, compared to its average volume of 6,352,512. The stock's 50-day moving average price is $56.17 and its 200-day moving average price is $46.94. The stock has a market cap of $37.25 billion, a P/E ratio of -37.38 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 has a one year low of $29.55 and a one year high of $63.58.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, October 31st. The company reported ($0.37) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.39) by $0.02. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. The business had revenue of $919.00 million during the quarter, compared to analysts' expectations of $1.02 billion. During the same quarter in the prior year, the firm earned ($0.45) EPS. The business's revenue for the quarter was up 9.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Roblox will post -1.56 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 166,668 shares of Roblox stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $42.15, for a total transaction of $7,025,056.20. Following the transaction, the chief executive officer now owns 135,755 shares of the company's stock, valued at $5,722,073.25. The trade was a 55.11 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Anthony P. Lee sold 200,000 shares of the stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $50.33, for a total value of $10,066,000.00. Following the completion of the sale, the director now directly owns 4,707,579 shares of the company's stock, valued at $236,932,451.07. The trade was a 4.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,254,601 shares of company stock valued at $65,622,735 over the last ninety days. 22.15% of the stock is owned by company insiders.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently added to or reduced their stakes in RBLX. FMR LLC boosted its holdings in shares of Roblox by 24.5% in the 3rd quarter. FMR LLC now owns 20,942,691 shares of the company's stock worth $926,924,000 after buying an additional 4,115,286 shares during the last quarter. Dragoneer Investment Group LLC increased its stake in shares of 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 during the last quarter. State Street Corp raised its stake in shares of Roblox by 2.3% in the third quarter. State Street Corp now owns 10,855,890 shares of the company's stock valued at $480,482,000 after buying an additional 240,565 shares during the period. ValueAct Holdings L.P. lifted its holdings in Roblox by 340.7% during the third 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 last quarter. Finally, Geode Capital Management LLC lifted its holdings in Roblox by 5.2% during the third quarter. Geode Capital Management LLC now owns 8,332,563 shares of the company's stock valued at $368,003,000 after purchasing an additional 408,915 shares during the last quarter. 94.46% of the stock is owned by 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.