B. Riley Financial Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its price objective dropped by analysts at B. Riley Financial from $80.00 to $45.00 in a report released on Monday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. B. Riley Financial’s price target points to a potential upside of 20.09% from the stock’s previous close.

A number of other research analysts have also issued reports on RBLX. UBS Group set a $33.00 price target on shares of Roblox in a research note on Friday. Seaport Research Partners lowered shares of Roblox to a “neutral” rating in a report on Monday, June 29th. Needham & Company LLC reduced their target price on Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Friday. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. Finally, Raymond James Financial started coverage on Roblox in a research note on Monday, June 29th. They set a “market perform” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $62.39.

Roblox Stock Up 5.3%

NYSE:RBLX traded up $1.87 during mid-day trading on Monday, hitting $37.47. 11,911,557 shares of the company’s stock traded hands, compared to its average volume of 11,682,000. The company has a fifty day moving average of $49.28 and a 200 day moving average of $56.79. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. Roblox has a twelve month low of $33.88 and a twelve month high of $142.00. The company has a market capitalization of $25.17 billion, a P/E ratio of -26.17 and a beta of 1.41.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The company’s revenue was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.41) earnings per share. On average, analysts forecast that Roblox will post -1.4 EPS for the current year.

Roblox announced that its board has approved a stock repurchase plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its shares are undervalued.

Insider Activity at Roblox

In other news, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $57.69, for a total value of $961,461.54. Following the sale, the director owned 1,277,835 shares in the company, valued at $73,718,301.15. This represents a 1.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sean Jack Buckley sold 4,744 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $46.36, for a total value of $219,931.84. Following the sale, the insider directly owned 97,141 shares in the company, valued at approximately $4,503,456.76. This trade represents a 4.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 161,983 shares of company stock worth $7,580,990 in the last three months. Company insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently bought and sold shares of RBLX. Reyes Financial Architecture Inc. grew its stake in shares of Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares during the period. Hanson & Doremus Investment Management acquired a new position in shares of Roblox in the 1st quarter valued at $25,000. Fideuram Asset Management Ireland dac purchased a new stake in Roblox during the fourth quarter worth $27,000. Basecamp Wealth Advisors LLC grew its position in Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after buying an additional 252 shares during the period. Finally, GW&K Investment Management LLC grew its position in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after buying an additional 161 shares during the period. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: A Zacks analysis is examining Roblox’s dependence on international revenue, highlighting its importance to financial stability and future growth while leaving the ultimate stock impact dependent on execution and regional performance. International Markets and Roblox: A Deep Dive for Investors

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.