Roblox Corporation (NYSE: RBLX) stock fell -2.47% on Thursday to $39.51 against a previous-day closing price of $40.51. With 5.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 10.35 million shares. During the session, the Electronic Gaming & Multimedia company that operates in wider Communication Services sector, reached to the highest price of $40.88 whereas the lowest price it dropped to was $39.03. The 52-week range on RBLX shows that it touched its highest point at $53.88 and its lowest point at $23.88 during that stretch. It currently has a 1-year price target of $42.44.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RBLX was down-trending over the past week, with a drop of -6.09%, but this was up by 10.49% over a month. Three-month performance surged to 6.90% while six-month performance rose 28.11%. The stock gained 45.95% in the past year, while it has gained 38.83% so far this year. A look at the trailing 12-month EPS for RBLX yields -1.72 with Next year EPS estimates of -1.69. For the next quarter, that number is -0.45. This implies an EPS growth rate of -85.00% for this year and 3.90% for next year.
Float and Shares Shorts:
At present, 606.64 million RBLX shares are outstanding with a float of 524.95 million shares on hand for trading. On Apr 27, 2023, short shares totaled 21.06 million, which was 3.45% higher than short shares on Mar 30, 2023. In addition to Mr. David Baszucki as the firm’s Founder, Pres, CEO & Chairman, Mr. Michael Guthrie serves as its Chief Financial Officer.
Institutional Ownership:
Through their ownership of 74.66% of RBLX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.49% of RBLX, in contrast to 28.93% held by mutual funds. Shares owned by individuals account for 26.60%. As the largest shareholder in RBLX with 6.03% of the stake, Morgan Stanley Investment Managem holds 33,377,381 shares worth 33,377,381. A second-largest stockholder of RBLX, The Vanguard Group, Inc., holds 32,718,910 shares, controlling over 5.91% of the firm’s shares. Baillie Gifford & Co. is the third largest shareholder in RBLX, holding 29,003,661 shares or 5.24% stake. With a 2.02% stake in RBLX, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 11,176,880 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 1.52% of RBLX stock, is the second-largest Mutual Fund holder. It holds 8,396,727 shares valued at 298.92 million. Fidelity Global Innovators Invest holds 1.48% of the stake in RBLX, owning 8,197,971 shares worth 291.85 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, RBLX reported revenue of $591.21M and operating income of -$170.27M. The EBITDA in the recently reported quarter was -$140.12M and diluted EPS was -$0.30.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RBLX since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RBLX analysts setting a high price target of $60.00 and a low target of $19.00, the average target price over the next 12 months is $41.27. Based on these targets, RBLX could surge 51.86% to reach the target high and fall by -51.91% to reach the target low. Reaching the average price target will result in a growth of 4.45% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded RBLX stock several times over the past three months with 8 Buys and 17 Sells. In these transactions, 2,567,576 shares were bought while 1,057,443 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 129 over the past year. The total number of shares bought during that period was 7,506,903 while 20,063,476 shares were sold.
