Citigroup lowered shares of Roblox (NYSE:RBLX – Free Report) from a buy rating to a neutral rating in a report released on Friday morning, Marketbeat.com reports. Citigroup currently has $55.00 target price on the stock.
A number of other equities research analysts have also recently weighed in on RBLX. Deutsche Bank cut Roblox from a “buy” rating to a “hold” rating and lowered their price target for the stock from $56.00 to $38.00 in a report on Friday, July 31st. Wells Fargo & Company downgraded Roblox from an “overweight” rating to a “cautious” rating in a research note on Monday, October 12th. Needham & Company LLC reaffirmed a “buy” rating and set a $55.00 price objective on shares of Roblox in a report on Friday, October 30th. Oppenheimer reiterated an “outperform” rating and set a $50.00 target price (down from $82.00) on shares of Roblox in a research report on Friday, September 11th. Finally, B. Riley Financial boosted their target price on Roblox from $45.00 to $51.00 and gave the stock a “buy” rating in a research report on Monday, November 2nd. Two investment 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 assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Roblox presently has an average rating of “Hold” and a consensus price target of $53.04.
Check Out Our Latest Stock Analysis on Roblox
Roblox Price Performance
Roblox (NYSE:RBLX – Get Free Report) last issued its earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.11. Roblox had a negative net margin of 16.48% and a negative return on equity of 417.56%. The company had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.63 billion. During the same period last year, the company posted ($0.37) earnings per share. The firm’s quarterly revenue was up 15.6% compared to the same quarter last year. As a group, analysts predict that Roblox will post -1.36 earnings per share for the current fiscal year.
Insider Activity at Roblox
In other news, insider Matthew D. Kaufman sold 14,904 shares of the 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 $565,755.84. Following the sale, the insider directly owned 335,060 shares in the company, valued at $12,718,877.60. This represents a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $680,774.64. Following the transaction, the insider directly 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. Additional details regarding this sale are available in the official SEC disclosure. 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 quarter. 10.05% of the stock is owned by corporate insiders.
Institutional Inflows and Outflows
Institutional investors have recently modified their holdings of the stock. Headlands Technologies LLC purchased a new stake in Roblox in the 3rd quarter valued at approximately $306,000. Empowered Funds LLC raised its holdings in shares of Roblox by 3.5% in the third quarter. Empowered Funds LLC now owns 50,264 shares of the company’s stock worth $2,130,000 after acquiring an additional 1,699 shares during the last quarter. Kovack Advisors Inc. acquired a new position in shares of Roblox in the third quarter worth $34,000. Healthcare of Ontario Pension Plan Trust Fund lifted its position in shares of Roblox by 382.3% in the third quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,544,900 shares of the company’s stock valued at $65,457,000 after acquiring an additional 1,224,600 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC lifted its position in shares of Roblox by 7.9% in the third quarter. Steward Partners Investment Advisory LLC now owns 44,283 shares of the company’s stock valued at $1,876,000 after acquiring an additional 3,244 shares in the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.
Key Roblox News
Investors following RBLX have been watching these news items:
- 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
Roblox Company Profile
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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