Morgan Stanley Cuts Roblox (NYSE:RBLX) Price Target to $155.00

Roblox (NYSE:RBLX) had its price objective cut by research analysts at Morgan Stanley from $170.00 to $155.00 in a research report issued on Tuesday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s target price would suggest a potential upside of 86.25% from the company’s current price.

A number of other equities analysts have also weighed in on the company. Cowen reissued a “sell” rating on shares of Roblox in a research report on Tuesday, January 6th. BTIG Research cut their target price on shares of Roblox from $180.00 to $174.00 and set a “buy” rating for the company in a research report on Thursday, October 30th. Oppenheimer restated an “outperform” rating and issued a $150.00 price target on shares of Roblox in a research note on Friday, October 31st. B. Riley assumed coverage on Roblox in a research report on Tuesday, December 9th. They issued a “buy” rating and a $125.00 target price on the stock. Finally, Jefferies Financial Group reduced their price target on shares of Roblox from $115.00 to $100.00 and set a “hold” rating for the company in a research report on Thursday, December 11th. Eighteen investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Roblox presently has a consensus rating of “Moderate Buy” and a consensus target price of $134.23.

Roblox Stock Up 8.5%

NYSE RBLX traded up $6.50 during trading hours on Tuesday, reaching $83.22. 10,849,188 shares of the company’s stock traded hands, compared to its average volume of 11,014,859. The firm has a market cap of $54.50 billion, a PE ratio of -58.40 and a beta of 1.64. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59. The firm has a 50-day simple moving average of $90.40 and a 200 day simple moving average of $112.57.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.44) by $0.07. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The firm had revenue of $1.36 billion during the quarter, compared to analyst estimates of $1.64 billion. During the same period last year, the business earned ($0.37) earnings per share. The business’s revenue was up 70.3% on a year-over-year basis. Sell-side analysts anticipate that Roblox will post -1.49 EPS for the current fiscal year.

Insider Activity

In other news, Director Anthony P. Lee sold 59,000 shares of the business’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $79.96, for a total value of $4,717,640.00. Following the transaction, the director owned 257,258 shares of the company’s stock, valued at approximately $20,570,349.68. The trade was a 18.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Amy Marie Rawlings sold 2,642 shares of Roblox stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $95.24, for a total transaction of $251,624.08. Following the completion of the sale, the chief accounting officer owned 46,452 shares in the company, valued at approximately $4,424,088.48. This represents a 5.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 497,300 shares of company stock valued at $45,713,286 in the last three months. 12.92% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roblox

Several large investors have recently made changes to their positions in RBLX. Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Roblox during the third quarter worth $26,000. Total Investment Management Inc. bought a new stake in Roblox during the 2nd quarter valued at about $29,000. ORG Partners LLC purchased a new stake in Roblox in the 2nd quarter valued at about $33,000. Whipplewood Advisors LLC purchased a new position in shares of Roblox in the 2nd quarter worth approximately $34,000. Finally, Whittier Trust Co. of Nevada Inc. bought a new position in shares of Roblox during the 3rd quarter worth approximately $37,000. 94.46% of the stock is owned by institutional investors.

Roblox Company Profile

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.