Roblox (NYSE:RBLX) Stock Rating Lowered by Citigroup

Roblox (NYSE:RBLX) was downgraded by investment analysts at Citigroup from a “buy” rating to a “neutral” rating in a report released on Friday, Benzinga reports. They currently have a $55.00 target price on the stock. Citigroup‘s price objective indicates a potential upside of 9.35% from the stock’s previous close.

Several other research analysts have also recently issued reports on RBLX. Roth Capital restated a “buy” rating and issued a $84.00 price objective (up from $78.00) on shares of Roblox in a research note on Monday, October 26th. TD Cowen dropped their target price on Roblox from $49.00 to $40.00 and set a “hold” rating on the stock in a research report on Friday, July 31st. BTIG Research increased their price target on shares of Roblox from $41.00 to $42.00 and gave the stock a “sell” rating in a report on Wednesday, October 28th. Wall Street Zen upgraded shares of Roblox from a “sell” rating to a “hold” rating in a report on Sunday, October 11th. Finally, Oppenheimer reissued an “outperform” rating and set a $50.00 price target (down from $82.00) on shares of Roblox in a research report on Friday, September 11th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, thirteen have given a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $53.04.

Roblox Price Performance

NYSE RBLX opened at $50.30 on Friday. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.80 and a quick ratio of 0.80. The stock’s fifty day moving average price is $48.10 and its 200 day moving average price is $51.31. Roblox has a 1 year low of $33.88 and a 1 year high of $103.78. The company has a market cap of $33.77 billion, a price-to-earnings ratio of -36.65 and a beta of 1.45.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share (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 company had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.63 billion. During the same quarter last year, the business posted ($0.37) EPS. The firm’s quarterly revenue was up 15.6% on a year-over-year basis. As a group, equities research analysts forecast that Roblox will post -1.36 earnings per share for the current year.

Insider Buying and Selling at Roblox

In related news, insider Sean Buckley sold 4,321 shares of Roblox stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $38.68, for a total value of $167,136.28. Following the completion of the transaction, the insider owned 87,213 shares in the company, valued at $3,373,398.84. The trade was a 4.72% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Naveen K. Chopra sold 17,509 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $664,641.64. Following the completion of the transaction, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at $13,788,932.04. The trade was a 4.60% decrease in their position. 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. Over the last 90 days, insiders sold 174,795 shares of company stock worth $6,921,031. 10.05% of the stock is currently owned by company insiders.

Institutional Trading of Roblox

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Ieq Capital LLC raised its stake in shares of Roblox by 1.0% during the 3rd 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 during the period. Renaissance Technologies LLC grew its stake in Roblox by 7.5% in the 1st quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company’s stock valued at $403,054,000 after acquiring an additional 497,625 shares during the period. Amundi grew its stake in Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after acquiring an additional 2,631,074 shares during the period. Assenagon Asset Management S.A. increased its holdings in Roblox by 216.4% in the 3rd quarter. Assenagon Asset Management S.A. now owns 5,992,101 shares of the company’s stock worth $253,885,000 after acquiring an additional 4,098,311 shares in the last quarter. Finally, Amova Asset Management Americas Inc. increased its holdings in Roblox by 17.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,238,160 shares of the company’s stock worth $183,247,000 after acquiring an additional 469,379 shares in the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

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.