Steward Partners Investment Advisory Acquires More Shares of Roblox

by John Nowacky
in Action, News
on 10 June 2024

Steward Partners Investment Advisory LLC has increased its stake in Roblox Co. by nearly 100 percent during the fourth quarter, according to recent filings with the Securities & Exchange Commission. The firm now owns 4,689 shares of the company’s stock, with a value of approximately $214,000. Other institutional investors, such as Aviva PLC, Morgan Stanley, Vanguard Group Inc., Connor Clark & Lunn Investment Management Ltd., and International Assets Investment Management LLC, have also made significant modifications to their holdings of Roblox stock.

Meanwhile, analysts have been providing their assessments of the company, with a range of rating changes and price targets. BTIG Research has reduced its price objective on Roblox shares, while Morgan Stanley has also lowered its price target. On the other hand, JPMorgan Chase & Co. has upgraded the stock from neutral to overweight. In total, seven equities research analysts have given the stock a hold rating, fifteen have assigned a buy rating, and one has given a strong buy rating. The stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $41.76.

In terms of insider activity, Roblox insider Arvind Chakravarthy recently sold 13,970 shares of the company’s stock, totaling $488,950. Additionally, CAO Amy Marie Rawlings sold 3,910 shares, valued at $127,309.60. Insiders have sold a total of 293,221 shares of Roblox stock over the last 90 days, representing 22.15% of the company’s total shares.

Roblox’s stock opened at $35.63 on Monday, with a 50-day moving average of $35.45 and a 200-day moving average of $39.15. The company has a market capitalization of $21.07 billion and a beta of 1.58. Roblox reported earnings per share of ($0.43) for the latest quarter, surpassing the consensus estimate of ($0.53) by $0.10. The company’s revenue for the quarter was $923.76 million, beating analysts’ expectations. Despite these positive results, Roblox has a negative return on equity and a negative net margin.

Roblox Corporation is an online entertainment platform that allows developers and creators to build their own games using Roblox Studio. The company operates both in the United States and internationally.

Additional relevant facts:
– Roblox was founded in 2004 by David Baszucki and Erik Cassel.
– Roblox went public through a direct listing on the New York Stock Exchange (NYSE) on March 10, 2021.
– The company’s user base consists primarily of children and teenagers, with a reported 150 million monthly active users as of June 2021.
– Roblox offers a variety of virtual experiences, including games, virtual worlds, and social interactions.
– The platform has a robust ecosystem that allows developers to monetize their creations through in-game purchases and virtual currency.
– In 2020, Roblox saw a significant surge in usage and revenue due to the COVID-19 pandemic, as more people turned to online entertainment and gaming.
– The company has faced scrutiny and controversy regarding user safety and moderation, as there have been instances of inappropriate content and potential risks for young users.
– Roblox has been actively working to enhance its safety measures and promote a positive and inclusive community.

Key questions and answers:
1. Who are the major institutional investors of Roblox stock?
– Along with Steward Partners Investment Advisory, other major institutional investors of Roblox stock include Aviva PLC, Morgan Stanley, Vanguard Group Inc., Connor Clark & Lunn Investment Management Ltd., and International Assets Investment Management LLC.

2. What are the recent price target changes for Roblox stock by analysts?
– BTIG Research and Morgan Stanley have reduced their price targets for Roblox shares, while JPMorgan Chase & Co. has upgraded the stock from neutral to overweight.

3. How has insider activity been for Roblox stock?
– Roblox insiders, such as Arvind Chakravarthy and Amy Marie Rawlings, have sold significant amounts of Roblox stock in recent months, totaling hundreds of thousands of shares.

Key challenges or controversies:
1. User safety and moderation: Roblox has faced challenges in ensuring the safety of its young user base and moderating content for inappropriate or harmful material. The company has been working to address these concerns and improve safety measures.

2. Negative return on equity and net margin: Despite positive quarterly results, Roblox has a negative return on equity and net margin, which could be a challenge in maintaining profitability and investor confidence.

Advantages:
1. Growing user base: Roblox has a large and growing user base of millions of monthly active users, which provides a robust audience for developers and creators on the platform.

2. Monetization opportunities: Roblox offers developers various ways to monetize their creations, including in-game purchases and virtual currency, which can potentially generate significant revenue.

Disadvantages:
1. Dependence on user-generated content: Roblox relies heavily on user-generated content, which can present quality and safety risks. The company must continuously monitor and moderate the content to maintain a positive experience.

2. Competition in the gaming industry: The online gaming market is highly competitive, and Roblox faces competition from other platforms and games. The company needs to consistently innovate and attract new users to stay ahead.

The source of the article is from the blog myshopsguide.com