Roblox (NYSE:RBLX) Announces Quarterly Earnings Results

Roblox (NYSE:RBLX) announced its quarterly earnings data on Thursday. The company reported ($0.32) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.07, Briefing.com reports. The company had revenue of $893.50 million for the quarter, compared to the consensus estimate of $897.88 million. Roblox had a negative return on equity of 1,285.39% and a negative net margin of 34.12%. The firm’s revenue was up 31.2% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.46) EPS. Roblox updated its FY 2024 guidance to EPS and its Q3 2024 guidance to EPS.

Roblox Stock Down 6.3 %

Shares of RBLX stock traded down $2.45 during trading hours on Monday, hitting $36.59. 4,646,543 shares of the company’s stock traded hands, compared to its average volume of 7,386,896. The stock has a market cap of $21.64 billion, a price-to-earnings ratio of -19.70 and a beta of 1.60. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 16.04. The stock’s fifty day simple moving average is $37.48 and its two-hundred day simple moving average is $38.06. Roblox has a 12-month low of $24.88 and a 12-month high of $47.20.

Insider Activity at Roblox

In related news, CAO Amy Marie Rawlings sold 3,910 shares of the firm’s stock in a transaction that occurred on Tuesday, May 21st. The shares were sold at an average price of $32.56, for a total transaction of $127,309.60. Following the completion of the sale, the chief accounting officer now owns 98,457 shares of the company’s stock, valued at $3,205,759.92. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Roblox news, CFO Michael Guthrie sold 900 shares of Roblox stock in a transaction that occurred on Tuesday, June 4th. The shares were sold at an average price of $35.00, for a total value of $31,500.00. Following the completion of the sale, the chief financial officer now owns 374,633 shares of the company’s stock, valued at approximately $13,112,155. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CAO Amy Marie Rawlings sold 3,910 shares of the business’s stock in a transaction on Tuesday, May 21st. The shares were sold at an average price of $32.56, for a total transaction of $127,309.60. Following the sale, the chief accounting officer now directly owns 98,457 shares of the company’s stock, valued at approximately $3,205,759.92. The disclosure for this sale can be found here. Insiders sold 476,889 shares of company stock valued at $17,575,955 over the last 90 days. Corporate insiders own 22.15% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on RBLX shares. Benchmark boosted their price objective on Roblox from $40.00 to $44.00 and gave the stock a “buy” rating in a report on Friday. Moffett Nathanson raised Roblox from a “sell” rating to a “neutral” rating and reduced their target price for the company from $31.00 to $26.00 in a report on Friday, May 10th. Macquarie upped their price objective on Roblox from $46.00 to $50.00 and gave the company an “outperform” rating in a research note on Monday. Barclays increased their target price on Roblox from $35.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Friday. Finally, BMO Capital Markets restated an “outperform” rating and set a $56.00 target price on shares of Roblox in a research report on Tuesday, July 30th. Eight 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. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $44.50.

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.