AXQ Capital LP Expands Its Investment in Roblox Co. (NYSE:RBLX)

AXQ Capital LP has taken a new position in Roblox Co. (NYSE:RBLX) during the fourth quarter, as detailed in its latest 13F filing with the SEC. The investment firm acquired 28,894 shares of the company’s stock, which is valued at roughly $1,672,000. This stake in Roblox represents about 0.8% of AXQ Capital LP's overall holdings, making it the firm’s eighth largest investment.

Institutional Investment Trends

Other major investors have also made notable adjustments to their stakes in Roblox recently. For instance, Toronto Dominion Bank increased its shareholding by 34.3% in the third quarter, owning now 60,092 shares worth $2,660,000 after purchasing an additional 15,333 shares. Smith Group Asset Management LLC made a significant move by lifting its position by 939.6% in the fourth quarter, now holding 69,030 shares valued at $3,994,000 after acquiring an extra 62,390 shares. Chicago Partners Investment Group LLC entered a new position during the fourth quarter, valued at approximately $363,000. Moreover, Silicon Valley Capital Partners expanded its holdings by an astonishing 3,010.0% in the fourth quarter, with 69,104 shares now valued at $3,998,000 after acquiring an additional 66,882 shares. V Square Quantitative Management LLC also boosted its stake by 320.0% in the same period, now owning 2,587 shares valued at $149,000. Currently, institutional and hedge fund investors account for about 94.46% of Roblox’s stock ownership.

Recent Insider Transactions

In insider news, CFO Michael Guthrie sold 50,000 shares of Roblox stock on March 4th, generating a transaction value of $3,007,000 at an average share price of $60.14. After this sale, Guthrie owns 395,465 shares, valued at approximately $23,783,265. Additionally, CEO David Baszucki sold 34,099 shares on March 17th for about $1,945,347.95 at an average price of $57.05, reducing his ownership to 221,983 shares worth $12,664,130.15. This sale represented a 13.32% decrease in his stock ownership. Together, insiders have liquidated 950,466 shares worth around $61,646,297 over the last three months. Insiders hold 22.15% of the company’s stock.

Roblox Stock Performance

Currently, Roblox stock is trading at $61.21. The company experienced a significant drop, with its stock reaching a 1-year low of $29.55 and a high of $75.74. Roblox has a market capitalization of $37.89 billion, a price-to-earnings ratio of -42.21, and a beta of 1.49. Financial metrics show a current ratio of 1.02, a quick ratio of 0.98, and a debt-to-equity ratio of 4.82. The 50-day simple moving average stands at $63.54, while the 200-day simple moving average is $54.82.

Quarterly Earnings Overview

Roblox released its latest quarterly earnings results on February 6th, reporting an EPS of ($0.33), which was better than analysts’ expectations of ($0.46) by $0.13. The company reported a negative net margin of 25.97% and an extremely negative return on equity of 665.98%. Analysts forecast that Roblox will post earnings per share of -1.49 for the current year.

Analyst Ratings and Recommendations

Several analysts have provided their insights on Roblox shares recently. Barclays reduced its price target from $50.00 to $46.00 and set an “equal weight” rating. Wedbush maintained an “outperform” rating with a target of $83.00. Morgan Stanley raised their target from $65.00 to $75.00, giving the stock an “overweight” rating. Piper Sandler maintained its “overweight” rating and increased its target to $72.00 from $65.00. Raymond James reissued a “strong-buy” rating with a price target of $60.00. As per MarketBeat.com data, while one analyst has rated the stock as a sell, six rated it as hold, seventeen as buy, and one as strong buy, resulting in a consensus rating of "Moderate Buy" and an average target price of $64.19.

About Roblox Corporation

Roblox Corporation develops and operates an online entertainment platform both in the United States and internationally. Its offerings include Roblox Studio, a free toolset for developers to create and manage 3D experiences, the Roblox Client application for users to explore these experiences, and Roblox Cloud that provides the necessary services and infrastructure to support the platform.

Investment, Stock, Earnings