Roblox (NYSE:RBLX) Rating Increased to Hold at Zacks Investment Research

Roblox (NYSE:RBLXGet Rating) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Tuesday, Zacks.com reports.

According to Zacks, “Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset which allows developers and creators to build, publish and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution which provides services and infrastructure to power the human co-experience platform. Roblox Corporation is based in San Mateo, California. “

Several other research firms also recently weighed in on RBLX. Stifel Nicolaus dropped their target price on shares of Roblox from $65.00 to $53.00 in a research report on Tuesday, May 3rd. Daiwa Capital Markets dropped their price objective on shares of Roblox from $56.00 to $38.00 in a research note on Tuesday. BTIG Research dropped their price target on shares of Roblox from $99.00 to $84.00 in a research note on Friday, March 11th. Wedbush began coverage on shares of Roblox in a report on Monday, May 9th. They set a “neutral” rating and a $28.00 price objective for the company. Finally, Truist Financial decreased their price objective on shares of Roblox from $70.00 to $36.00 in a report on Tuesday, May 10th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and ten have assigned a buy rating to the stock. According to data from MarketBeat, Roblox presently has an average rating of “Buy” and an average target price of $58.94.

RBLX stock traded down $1.85 during midday trading on Tuesday, hitting $30.29. The stock had a trading volume of 397,565 shares, compared to its average volume of 34,130,152. The firm has a market cap of $16.41 billion, a PE ratio of -34.06 and a beta of 2.29. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.73 and a quick ratio of 1.73. Roblox has a 12-month low of $21.65 and a 12-month high of $141.60. The company’s 50-day moving average price is $39.88 and its 200 day moving average price is $69.74.

Roblox (NYSE:RBLXGet Rating) last released its earnings results on Tuesday, May 10th. The company reported ($0.27) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.05). The firm had revenue of $631.21 million during the quarter, compared to analysts’ expectations of $649.48 million. Roblox had a negative return on equity of 89.70% and a negative net margin of 25.01%. The firm’s revenue was down 3.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.46) earnings per share. As a group, sell-side analysts anticipate that Roblox will post -1 EPS for the current year.

In other news, insider Craig Donato sold 5,000 shares of the firm’s stock in a transaction on Friday, March 18th. The stock was sold at an average price of $50.00, for a total transaction of $250,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Michael Guthrie sold 2,998 shares of Roblox stock in a transaction dated Tuesday, February 22nd. The stock was sold at an average price of $46.87, for a total value of $140,516.26. The disclosure for this sale can be found here. Insiders have sold a total of 15,930 shares of company stock valued at $797,939 in the last three months. Insiders own 28.22% of the company’s stock.

Several large investors have recently added to or reduced their stakes in RBLX. Morgan Stanley boosted its stake in shares of Roblox by 269.0% during the second quarter. Morgan Stanley now owns 18,737,506 shares of the company’s stock valued at $1,686,002,000 after purchasing an additional 13,659,143 shares during the period. Center for Financial Planning Inc. raised its holdings in Roblox by 81.7% in the third quarter. Center for Financial Planning Inc. now owns 6,559 shares of the company’s stock worth $496,000 after purchasing an additional 2,950 shares in the last quarter. Rafferty Asset Management LLC bought a new position in Roblox in the third quarter worth $214,000. Citigroup Inc. raised its holdings in Roblox by 698.2% in the third quarter. Citigroup Inc. now owns 363,438 shares of the company’s stock worth $27,456,000 after purchasing an additional 317,906 shares in the last quarter. Finally, Allianz Asset Management GmbH raised its holdings in Roblox by 70.9% in the third quarter. Allianz Asset Management GmbH now owns 13,085 shares of the company’s stock worth $989,000 after purchasing an additional 5,427 shares in the last quarter. 68.00% of the stock is owned by hedge funds and other institutional investors.

About Roblox (Get Rating)

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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