Roblox Corporation (NYSE:RBLX) Short Interest Update

Roblox Corporation (NYSE:RBLX) saw a large decline in short interest in the month of August. As of August 14th, there was short interest totaling 13,884,449 shares, a decline of 42.4% from the July 30th total of 24,107,149 shares. Based on an average trading volume of 16,510,605 shares, the days-to-cover ratio is presently 0.8 days. Approximately 2.3% of the company’s shares are sold short.

Wall Street Analysts Forecast Growth

RBLX has been the topic of several analyst reports. DA Davidson set a $40.00 target price on Roblox in a research note on Friday, July 31st. UBS Group set a $33.00 price target on shares of Roblox in a report on Friday, July 31st. Canaccord Genuity Group set a $58.00 price objective on shares of Roblox in a research note on Friday, July 31st. Needham & Company LLC decreased their target price on shares of Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a research report on Friday, July 31st. Finally, Piper Sandler restated a “neutral” rating and issued a $47.00 target price (down from $50.00) on shares of Roblox in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $60.89.

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 52,568 shares of the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $1,995,481.28. Following the completion of the sale, the chief executive officer directly owned 799,646 shares of the company’s stock, valued at $30,354,562.16. The trade was a 6.17% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 17,509 shares of the firm’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $664,641.64. Following the transaction, the chief financial officer owned 363,249 shares in the company, valued at $13,788,932.04. The trade was a 4.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 168,213 shares of company stock worth $6,831,901 over the last ninety days. 10.05% of the stock is owned by insiders.

Institutional Trading of Roblox

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RBLX. Allspring Global Investments Holdings LLC grew its holdings in Roblox by 379.8% in the first quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock valued at $53,102,000 after purchasing an additional 729,379 shares during the period. PensionDanmark Pensionsforsikringsaktieselskab raised its stake in shares of Roblox by 35.5% during the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company’s stock worth $7,076,000 after buying an additional 34,120 shares during the period. Glynn Capital Management LLC purchased a new position in shares of Roblox during the 4th quarter valued at approximately $5,706,000. Assenagon Asset Management S.A. lifted its position in shares of Roblox by 89.0% during the 2nd quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company’s stock valued at $102,984,000 after buying an additional 891,634 shares in the last quarter. Finally, Militia Capital Management LLC acquired a new stake in Roblox in the 1st quarter valued at $2,590,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox Stock Performance

NYSE:RBLX traded up $0.54 during trading hours on Friday, hitting $38.69. 7,736,066 shares of the company were exchanged, compared to its average volume of 16,047,966. The stock has a market capitalization of $25.92 billion, a price-to-earnings ratio of -27.06 and a beta of 1.46. Roblox has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The company’s 50 day moving average price is $46.04 and its 200-day moving average price is $51.76.

Roblox (NYSE:RBLX) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter last year, the company posted ($0.41) earnings per share. The business’s quarterly revenue was up 8.3% on a year-over-year basis. As a group, research analysts forecast that Roblox will post -1.39 earnings per share for the current year.

Roblox declared that its board has initiated a stock repurchase plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.