Roblox (NYSE:RBLX) Trading Down 7.6% on Analyst Downgrade

Roblox Co. (NYSE:RBLXGet Rating)’s share price traded down 7.6% on Friday after Needham & Company LLC lowered their price target on the stock from $55.00 to $53.00. Needham & Company LLC currently has a buy rating on the stock. Roblox traded as low as $38.82 and last traded at $40.21. 390,094 shares traded hands during mid-day trading, a decline of 97% from the average session volume of 14,526,539 shares. The stock had previously closed at $43.50.

Several other equities analysts have also issued reports on RBLX. Wolfe Research assumed coverage on shares of Roblox in a report on Tuesday, August 16th. They issued a “market perform” rating on the stock. Morgan Stanley upped their price objective on shares of Roblox from $25.00 to $32.00 and gave the company an “equal weight” rating in a report on Wednesday, August 10th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Roblox from $45.00 to $52.00 and gave the company a “buy” rating in a report on Friday, August 12th. Jefferies Financial Group upped their price objective on shares of Roblox from $24.00 to $30.00 in a report on Thursday, June 9th. Finally, Benchmark dropped their price objective on shares of Roblox from $45.00 to $21.00 in a report on Wednesday, June 15th. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $43.78.

Insider Activity

In other news, CEO David Baszucki sold 550,000 shares of the firm’s stock in a transaction on Tuesday, August 23rd. The shares were sold at an average price of $41.41, for a total transaction of $22,775,500.00. Following the sale, the chief executive officer now owns 1 shares in the company, valued at approximately $41.41. The transaction was disclosed in a filing with the SEC, which is accessible through this link. In other news, CEO David Baszucki sold 550,000 shares of the firm’s stock in a transaction on Tuesday, August 23rd. The shares were sold at an average price of $41.41, for a total transaction of $22,775,500.00. Following the sale, the chief executive officer now owns 1 shares in the company, valued at approximately $41.41. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Manuel Bronstein sold 2,452 shares of the stock in a transaction on Friday, August 12th. The shares were sold at an average price of $50.03, for a total transaction of $122,673.56. Following the transaction, the insider now directly owns 808,040 shares in the company, valued at approximately $40,426,241.20. The disclosure for this sale can be found here. In the last quarter, insiders have sold 707,960 shares of company stock worth $30,289,182. 28.22% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the business. Gordian Capital Singapore Pte Ltd bought a new stake in Roblox in the 4th quarter worth $34,000. Cornerstone Advisory LLC bought a new stake in Roblox in the 4th quarter worth $34,000. Parkside Financial Bank & Trust grew its holdings in Roblox by 1,882.4% in the 4th quarter. Parkside Financial Bank & Trust now owns 337 shares of the company’s stock worth $35,000 after acquiring an additional 320 shares during the last quarter. HM Payson & Co. bought a new stake in Roblox in the 4th quarter worth $40,000. Finally, Highlander Capital Management LLC bought a new stake in Roblox in the 1st quarter worth $25,000. Institutional investors own 69.35% of the company’s stock.

Roblox Price Performance

The business’s 50 day moving average price is $42.60 and its two-hundred day moving average price is $38.74. The stock has a market cap of $21.54 billion, a P/E ratio of -41.58 and a beta of 1.89. The company has a current ratio of 1.65, a quick ratio of 1.65 and a debt-to-equity ratio of 1.79.

Roblox (NYSE:RBLXGet Rating) last issued its quarterly earnings results on Tuesday, August 9th. The company reported ($0.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.06). Roblox had a negative net margin of 25.11% and a negative return on equity of 95.60%. The business had revenue of $639.90 million for the quarter, compared to analysts’ expectations of $625.43 million. During the same period last year, the business earned ($0.25) earnings per share. The company’s revenue was down 3.8% on a year-over-year basis. As a group, sell-side analysts expect that Roblox Co. will post -1.23 earnings per share for the current fiscal year.

Roblox Company Profile

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Roblox Corporation develops and operates an online entertainment platform. The company offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform.

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