Roblox Co. (NYSE:RBLX) Sees Large Decline in Short Interest

Roblox Co. (NYSE:RBLX) was the target of a significant decrease in short interest in October. As of October 31st, there was short interest totalling 26,970,000 shares, a decrease of 16.8% from the October 15th total of 32,430,000 shares. Based on an average trading volume of 7,700,000 shares, the short-interest ratio is currently 3.5 days. Currently, 5.1% of the company’s stock are short sold.

Insider Buying and Selling

In related news, CAO Amy Marie Rawlings sold 2,186 shares of Roblox stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $52.90, for a total transaction of $115,639.40. Following the completion of the transaction, the chief accounting officer now owns 91,062 shares in the company, valued at approximately $4,817,179.80. This trade represents a 2.34 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark Reinstra sold 17,000 shares of the company’s stock in a transaction that occurred on Monday, August 19th. The shares were sold at an average price of $40.47, for a total value of $687,990.00. Following the completion of the sale, the insider now owns 342,656 shares in the company, valued at $13,867,288.32. This represents a 4.73 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 987,373 shares of company stock worth $44,831,579. Corporate insiders own 22.15% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of hedge funds and other institutional investors have recently bought and sold shares of RBLX. DekaBank Deutsche Girozentrale grew its holdings in shares of Roblox by 2.4% during the first quarter. DekaBank Deutsche Girozentrale now owns 60,520 shares of the company’s stock worth $2,318,000 after purchasing an additional 1,419 shares during the last quarter. Entropy Technologies LP boosted its position in Roblox by 168.4% during the 3rd quarter. Entropy Technologies LP now owns 99,649 shares of the company’s stock worth $4,410,000 after buying an additional 62,521 shares during the period. Dragoneer Investment Group LLC grew its holdings 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 acquiring an additional 2,488,044 shares during the last quarter. Itau Unibanco Holding S.A. increased its position in Roblox by 62.0% in the 2nd quarter. Itau Unibanco Holding S.A. now owns 37,482 shares of the company’s stock valued at $1,395,000 after acquiring an additional 14,348 shares during the period. Finally, Sei Investments Co. raised its stake in shares of Roblox by 18.3% during the first quarter. Sei Investments Co. now owns 288,112 shares of the company’s stock valued at $11,000,000 after acquiring an additional 44,557 shares during the last quarter. Institutional investors own 91.08% of the company’s stock.

Wall Street Analysts Forecast Growth

RBLX has been the subject of a number of research reports. Morgan Stanley upgraded shares of Roblox from an “equal weight” rating to an “overweight” rating and raised their target price for the stock from $38.00 to $65.00 in a research note on Monday, November 4th. Needham & Company LLC upped their target price on Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Friday, November 1st. Citigroup increased their target price on Roblox from $53.00 to $63.00 and gave the stock a “buy” rating in a research note on Tuesday, November 5th. Raymond James upped their price objective on Roblox from $51.00 to $60.00 and gave the company a “strong-buy” rating in a report on Thursday, October 31st. Finally, Macquarie lifted their target price on Roblox from $50.00 to $58.00 and gave the stock an “outperform” rating in a report on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, Roblox presently has a consensus rating of “Moderate Buy” and an average target price of $55.30.

Roblox Price Performance

RBLX opened at $50.73 on Friday. The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.98 and a current ratio of 0.98. The company’s 50 day moving average is $45.43 and its 200-day moving average is $40.53. Roblox has a 1-year low of $29.55 and a 1-year high of $55.10.

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

Roblox Company Profile

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.