Citigroup Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its target price decreased by research analysts at Citigroup from $119.00 to $105.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price target suggests a potential upside of 76.95% from the company’s previous close.

Several other analysts also recently commented on RBLX. Wells Fargo & Company set a $97.00 price objective on shares of Roblox in a report on Monday, February 9th. Jefferies Financial Group set a $85.00 target price on shares of Roblox in a research report on Thursday, January 15th. BTIG Research reaffirmed a “buy” rating and set a $141.00 price target on shares of Roblox in a research report on Friday, February 6th. Barclays reduced their price objective on Roblox from $130.00 to $115.00 and set an “equal weight” rating for the company in a research note on Friday, February 6th. Finally, B. Riley Financial started coverage on Roblox in a report on Tuesday, December 9th. They issued a “buy” rating and a $125.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, eight have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat.com, Roblox currently has a consensus rating of “Moderate Buy” and a consensus price target of $116.81.

Roblox Stock Performance

Shares of Roblox stock traded up $0.17 on Tuesday, reaching $59.34. 2,123,847 shares of the stock were exchanged, compared to its average volume of 12,437,794. The business has a 50 day moving average price of $69.41 and a two-hundred day moving average price of $96.78. The firm has a market capitalization of $39.26 billion, a price-to-earnings ratio of -38.30 and a beta of 1.62. Roblox has a twelve month low of $50.10 and a twelve month high of $150.59. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The company had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter in the prior year, the company earned ($0.33) EPS. Roblox’s quarterly revenue was up 122.6% on a year-over-year basis. Analysts anticipate that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Buying and Selling at Roblox

In related news, CEO David Baszucki sold 272,269 shares of the firm’s stock in a transaction dated Tuesday, February 10th. The shares were sold at an average price of $72.66, for a total value of $19,783,065.54. Following the transaction, the chief executive officer directly owned 811,373 shares of the company’s stock, valued at approximately $58,954,362.18. This trade represents a 25.13% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Mark Reinstra sold 60,000 shares of Roblox stock in a transaction dated Friday, February 13th. The stock was sold at an average price of $63.94, for a total value of $3,836,400.00. Following the completion of the sale, the insider owned 394,322 shares in the company, valued at approximately $25,212,948.68. The trade was a 13.21% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 703,144 shares of company stock valued at $51,681,640. Insiders own 12.92% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently made changes to their positions in the company. Norges Bank acquired a new stake in shares of Roblox in the fourth quarter worth approximately $435,424,000. Vanguard Group Inc. lifted its holdings in Roblox by 5.6% in the 3rd quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after purchasing an additional 3,284,073 shares in the last quarter. SRS Investment Management LLC purchased a new position in Roblox in the 4th quarter valued at $238,065,000. Capital International Investors lifted its holdings in Roblox by 7.3% in the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after purchasing an additional 2,184,439 shares in the last quarter. Finally, ValueAct Holdings L.P. boosted its stake in Roblox by 39.5% during the 4th quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company’s stock worth $484,221,000 after purchasing an additional 1,692,600 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.