AXQ Capital LP Invests in Roblox Co. (NYSE:RBLX)

AXQ Capital LP has recently acquired a new stake in Roblox Co. (NYSE:RBLX) during the fourth quarter, as indicated by its latest 13F filing with the SEC. The firm purchased 28,894 shares of Roblox stock, which is valued at around $1,672,000. This investment represents 0.8% of AXQ Capital LP's total holdings, making Roblox the company's 8th largest investment.

Investor Activity in Roblox

Several other large investors have also modified their positions in Roblox. For example, Toronto Dominion Bank increased its shareholding by 34.3% in the third quarter, now owning 60,092 shares valued at $2,660,000 after acquiring an additional 15,333 shares. Smith Group Asset Management LLC significantly boosted its stake by 939.6% in the fourth quarter, now holding 69,030 shares valued at $3,994,000, following an additional purchase of 62,390 shares. Additionally, Chicago Partners Investment Group LLC established a new position valued at approximately $363,000 in the same quarter. Furthermore, Silicon Valley Capital Partners raised its position by an impressive 3,010.0%, now owning 69,104 shares worth about $3,998,000 after obtaining an additional 66,882 shares. V Square Quantitative Management LLC also increased its stake in Roblox by 320.0%, owning 2,587 shares valued at $149,000 after acquiring 1,971 additional shares. Institutional investors and hedge funds currently own 94.46% of Roblox's stock.

Insider Transactions

In relevant news, Roblox's CFO, Michael Guthrie, sold 50,000 shares on March 4th at an average price of $60.14, resulting in a transaction worth $3,007,000. Following this sale, Guthrie continues to own about 395,465 shares valued at approximately $23,783,265. This transaction represents an 11.22% decrease in his holding. CEO David Baszucki also sold shares, offloading 34,099 shares at an average price of $57.05 for a total of $1,945,347.95 on March 17th. After this sale, he owns 221,983 shares valued at around $12,664,130. In total, insiders have sold 950,466 shares worth approximately $61,646,297 in the last three months, while corporate insiders own 22.15% of the total shares.

Roblox Stock Performance

On Friday, Roblox stock opened at $61.21. The company has seen a yearly low of $29.55 and a peak of $75.74. With a market capitalization of $37.89 billion, Roblox has a price-to-earnings ratio of -42.21 and a beta of 1.49. Examining its liquidity, the company has a current ratio of 1.02 and a quick ratio of 0.98, along with a debt-to-equity ratio of 4.82. The 50-day simple moving average stands at $63.54, while the 200-day average is $54.82. Roblox announced its latest quarterly earnings results on February 6th, reporting an EPS of ($0.33), which exceeded analysts’ expectations of ($0.46) by $0.13. Despite this, the company recorded a negative net margin of 25.97% and a negative return on equity of 665.98%. Analysts predict that Roblox's EPS will be around -1.49 for this year.

Analysts’ Opinions

Various equities analysts have recently shared their insights on Roblox shares. Barclays lowered its price target from $50.00 to $46.00, maintaining an "equal weight" rating. Conversely, Wedbush reaffirmed an "outperform" rating with an increased price target of $83.00. Morgan Stanley adjusted its target from $65.00 to $75.00, offering an "overweight" rating. Piper Sandler also reissued an "overweight" rating, lifting the price target to $72.00 from $65.00. Raymond James maintained a "strong-buy" rating with a target of $60.00. Currently, there is a mix of optimism and caution regarding Roblox, as one analyst has a sell rating, six have issued hold ratings, seventeen believe in the stock as a buy, and one assigned a strong buy rating. Data indicates a consensus rating of "Moderate Buy" among analysts, with an average price target of $64.19.

Overview of Roblox Corporation

Roblox Corporation focuses on developing and operating an online entertainment platform catering to audiences in the United States and worldwide. It provides several services, including Roblox Studio, a free toolset for developers and creators to build and publish 3D content; Roblox Client, an application for users to explore diverse 3D experiences; and Roblox Cloud, which delivers essential services and infrastructure that supports the platform.

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