Wall Street Zen lowered shares of Roblox (NYSE:RBLX – Free Report) from a hold rating to a sell rating in a research report sent to investors on Saturday,Wall Street Zen reports.
Several other equities research analysts have also recently weighed in on RBLX. Raymond James Financial reiterated a “buy” rating on shares of Roblox in a report on Friday, September 11th. DA Davidson cut their price objective on shares of Roblox from $50.00 to $48.00 and set a “neutral” rating on the stock in a report on Monday, November 2nd. Citigroup downgraded Roblox from a “buy” rating to a “neutral” rating and set a $55.00 price target for the company. in a report on Friday. BMO Capital Markets lowered shares of Roblox from an “outperform” rating to a “market perform” rating and set a $45.00 price objective for the company. in a report on Friday, July 31st. Finally, Barclays lowered their target price on shares of Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have given a Hold rating and five have issued a Sell rating to the company. According to data from MarketBeat, Roblox presently has an average rating of “Hold” and an average price target of $53.04.
Check Out Our Latest Stock Report on RBLX
Roblox Trading Down 2.9%
RBLX traded down $1.49 on Friday, hitting $49.93. 5,338,539 shares of the company were exchanged, compared to its average volume of 9,970,259. The firm has a fifty day simple moving average of $48.27 and a two-hundred day simple moving average of $51.20. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.80 and a current ratio of 0.80. Roblox has a 12 month low of $33.88 and a 12 month high of $103.78. The stock has a market capitalization of $33.52 billion, a PE ratio of -36.18 and a beta of 1.45.
Roblox (NYSE:RBLX – Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, topping analysts’ consensus estimates of ($0.43) by $0.11. Roblox had a negative return on equity of 417.56% and a negative net margin of 16.48%. The business had revenue of $1.57 billion for the quarter, compared to analysts’ expectations of $1.63 billion. During the same period in the previous year, the firm earned ($0.37) EPS. The business’s quarterly revenue was up 15.6% on a year-over-year basis. Sell-side analysts expect that Roblox will post -1.36 earnings per share for the current year.
Insider Buying and Selling
In related news, insider Mark Reinstra sold 17,934 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the transaction, the insider owned 398,064 shares of the company’s stock, valued at approximately $15,110,509.44. This trade represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen Chopra sold 17,509 shares of the business’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $664,641.64. Following the sale, the chief financial officer owned 363,249 shares of the company’s stock, valued at $13,788,932.04. This trade represents a 4.60% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 174,795 shares of company stock valued at $6,921,031 in the last 90 days. 10.05% of the stock is owned by insiders.
Institutional Investors Weigh In On Roblox
Hedge funds and other institutional investors have recently modified their holdings of the stock. Ieq Capital LLC increased its position in Roblox by 1.0% in the third quarter. Ieq Capital LLC now owns 16,746,570 shares of the company’s stock worth $709,552,000 after buying an additional 172,017 shares in the last quarter. Renaissance Technologies LLC boosted its position in shares of Roblox by 7.5% during the first quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company’s stock worth $403,054,000 after acquiring an additional 497,625 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Roblox by 216.4% during the 3rd quarter. Assenagon Asset Management S.A. now owns 5,992,101 shares of the company’s stock valued at $253,885,000 after purchasing an additional 4,098,311 shares during the last quarter. Amundi increased its stake in Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock worth $326,586,000 after acquiring an additional 2,631,074 shares during the last quarter. Finally, Amova Asset Management Americas Inc. grew its holdings in shares of Roblox by 17.0% in the first quarter. Amova Asset Management Americas Inc. now owns 3,238,160 shares of the company’s stock valued at $183,247,000 after purchasing an additional 469,379 shares in the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.
Roblox News Roundup
These are some of the RBLX news items that stood out recently:
- Positive Sentiment: Roblox trades at about 4.9 times sales, below its five-year average, which may appeal to investors who believe the platform’s growth prospects remain intact. Is Citi Wrong to Give Up on Roblox? It Trades at 4.9x Sales, Below Its 5-Year Average
- Neutral Sentiment: Insider Mark Reinstra sold 5,071 shares under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 1.31%. The planned sale may be less informative than an unexpected transaction. Roblox insider sells shares
- Negative Sentiment: Citi’s downgrade reflects concerns about Roblox’s growth outlook. A recent analysis also highlighted bookings down 12% despite revenue rising 16%, reinforcing investor attention to demand and growth quality. Citi just downgraded Roblox stock. Here’s why. Bookings down 12%, revenue up 16%—A CPA dissects Roblox
About Roblox
Roblox Corporation operates an online platform where users can create, share and play interactive 3D experiences. The company provides Roblox Studio, a set of tools that creators use to build games and other virtual spaces, as well as services for users to connect and communicate within those experiences. Roblox supports a creator economy through Robux, its virtual currency, which users can use for digital items and purchases in experiences. Eligible creators can earn revenue from their work through purchases and other platform programs.
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