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

AXQ Capital LP has recently made a new investment in Roblox Co. (NYSE:RBLX) during the fourth quarter, as indicated in its latest 13F filing with the SEC. The firm acquired 28,894 shares of Roblox, valued at around $1,672,000. This investment positions Roblox as 0.8% of AXQ Capital LP's total holdings, making it the firm's eighth largest investment.

Changes Among Other Large Investors

Several other large investors have made significant adjustments to their positions in Roblox recently. For instance, Toronto Dominion Bank increased its stake in Roblox shares by 34.3% during the third quarter. After buying an additional 15,333 shares, the bank now holds a total of 60,092 shares valued at $2,660,000.

Smith Group Asset Management LLC made a remarkable increase of 939.6% in its position during the fourth quarter, acquiring an additional 62,390 shares. This brings Smith Group's total to 69,030 shares valued at $3,994,000.

Chicago Partners Investment Group LLC also entered a new position in Roblox during the fourth quarter, investing about $363,000. Silicon Valley Capital Partners significantly boosted its investment by 3,010.0%, now owning 69,104 shares valued at $3,998,000 after acquiring an additional 66,882 shares.

Meanwhile, V Square Quantitative Management LLC increased its stake by 320.0%, now holding 2,587 shares valued at $149,000 following an additional acquisition of 1,971 shares. Currently, approximately 94.46% of Roblox's stock is held by institutional investors and hedge funds.

Insider Trading Activity

In related news, CFO Michael Guthrie sold 50,000 shares of Roblox stock on March 4th for a total of around $3,007,000 at an average price of $60.14. After this transaction, Guthrie retains 395,465 shares, valued at approximately $23,783,265.10, marking an 11.22% decrease in his holdings.

Moreover, CEO David Baszucki sold 34,099 shares on March 17th for about $1,945,347.95, selling at an average price of $57.05. Following this move, Baszucki now holds 221,983 shares, valued at approximately $12,664,130.15, which is a 13.32% reduction in ownership. Over the past three months, insiders sold 950,466 shares worth $61,646,297, with corporate insiders owning 22.15% of the company's stock.

Roblox Stock Performance

As of Friday, Roblox stock opened at $61.21. The company has seen its share price fluctuate considerably, with a one-year low of $29.55 and a high of $75.74. Currently, Roblox has a market capitalization of $37.89 billion, a price-to-earnings ratio of -42.21, and a beta of 1.49, reflecting its volatility in the market. The company has current and quick ratios of 1.02 and 0.98, respectively, and a high debt-to-equity ratio of 4.82. Additionally, it has a 50-day simple moving average of $63.54 and a 200-day average of $54.82.

Roblox's most recent quarterly earnings report, released on February 6th, revealed an EPS of ($0.33), surpassing analysts' predictions of ($0.46) by $0.13. The company faces challenges with a negative net margin of 25.97% and a staggering negative return on equity of 665.98%. Moving forward, analysts expect Roblox to post an EPS of -1.49 for the current year.

Analysts' Perspectives

Various equity analysts have shared their insights on Roblox shares. Barclays lowered their price target from $50.00 to $46.00, maintaining an "equal weight" rating. In contrast, Wedbush reaffirmed an "outperform" rating and set a target price of $83.00. Morgan Stanley raised their price target from $65.00 to $75.00, issuing an "overweight" rating. Piper Sandler also adjusted their target price upward to $72.00 from $65.00, while Raymond James reiterated a "strong-buy" rating with a price target of $60.00.

In summary, one equities research analyst classified Roblox with a sell rating, six analysts gave it a hold rating, seventeen suggested a buy rating, and one assigned a strong buy rating. Overall, analysts have reached a consensus rating of "Moderate Buy" for the stock, with an average price target of $64.19.

About Roblox Corporation

Roblox Corporation develops and operates an online entertainment platform both domestically in the United States and internationally. The company offers Roblox Studio, a free toolset for developers to create and manage 3D experiences, alongside Roblox Client, which enables users to explore these experiences. Roblox Cloud provides the necessary services and infrastructure to support this platform.

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