Roblox (NYSE:RBLX) Hits New 52-Week Low – Here’s Why

Roblox Corporation (NYSE:RBLX) hit a new 52-week low on Thursday . The company traded as low as $40.15 and last traded at $42.0020, with a volume of 10768712 shares. The stock had previously closed at $41.54.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on RBLX. Roth Mkm set a $65.00 price objective on Roblox in a report on Tuesday, May 5th. HSBC cut Roblox from a “buy” rating to a “hold” rating and set a $46.00 price objective on the stock. in a report on Friday, May 1st. Needham & Company LLC began coverage on Roblox in a research note on Friday, May 1st. They issued a “buy” rating and a $60.00 target price for the company. BMO Capital Markets reaffirmed an “outperform” rating on shares of Roblox in a research note on Friday, February 6th. Finally, Piper Sandler lowered Roblox from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $100.00 to $50.00 in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Roblox presently has an average rating of “Hold” and an average target price of $87.17.

Roblox Price Performance

The company has a market capitalization of $28.77 billion, a PE ratio of -27.11 and a beta of 1.50. The firm has a fifty day moving average of $55.15 and a two-hundred day moving average of $74.25. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.Roblox’s quarterly revenue was up 43.4% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.32) EPS. Research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Insiders Place Their Bets

In other Roblox news, insider Matthew D. Kaufman sold 13,325 shares of the company’s stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $57.94, for a total transaction of $772,050.50. Following the completion of the transaction, the insider owned 364,320 shares of the company’s stock, valued at $21,108,700.80. This represents a 3.53% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 10,834 shares of the company’s stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $61.63, for a total value of $667,699.42. Following the transaction, the chief executive officer directly owned 800,539 shares of the company’s stock, valued at $49,337,218.57. The trade was a 1.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 76,144 shares of company stock worth $4,235,769. 12.92% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of RBLX. Reyes Financial Architecture Inc. raised its position in Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after purchasing an additional 194 shares during the last quarter. Hanson & Doremus Investment Management bought a new position in Roblox during the 1st quarter valued at approximately $25,000. Pilgrim Partners Asia Pte Ltd bought a new position in Roblox during the 3rd quarter valued at approximately $26,000. Fideuram Asset Management Ireland dac bought a new position in Roblox during the 4th quarter valued at approximately $27,000. Finally, GW&K Investment Management LLC raised its position in shares of Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after acquiring an additional 161 shares in the last quarter. Institutional investors own 94.46% of the company’s stock.

About Roblox

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.