Roblox (NYSE:RBLX) Downgraded by Wall Street Zen to Sell

Roblox (NYSE:RBLX) was downgraded by Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Several other analysts also recently issued reports on the company. Bank of America boosted their price objective on Roblox from $86.00 to $103.00 and gave the stock a “buy” rating in a report on Thursday, June 5th. Piper Sandler boosted their price target on shares of Roblox from $105.00 to $138.00 and gave the company an “overweight” rating in a report on Thursday, July 24th. BMO Capital Markets upped their price target on shares of Roblox from $135.00 to $150.00 and gave the company an “outperform” rating in a research report on Friday. Raymond James Financial cut shares of Roblox from a “strong-buy” rating to an “outperform” rating and lifted their price objective for the stock from $81.00 to $130.00 in a research report on Wednesday, July 23rd. Finally, Citigroup increased their target price on Roblox from $123.00 to $152.00 and gave the company a “buy” rating in a report on Wednesday, July 23rd. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and nineteen have given a buy rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $117.59.

Roblox Stock Down 9.2%

NYSE:RBLX opened at $125.16 on Friday. Roblox has a 52 week low of $35.30 and a 52 week high of $150.59. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.39. The stock has a 50 day moving average of $105.05 and a 200-day moving average of $78.56. The firm has a market capitalization of $84.89 billion, a PE ratio of -87.52 and a beta of 1.63.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, July 31st. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.04). The company had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.20 billion. Roblox had a negative return on equity of 417.87% and a negative net margin of 23.67%. The business’s revenue for the quarter was up 50.5% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.32) EPS. Analysts predict that Roblox will post -1.49 EPS for the current year.

Insider Buying and Selling

In related news, CEO David Baszucki sold 139,507 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $105.19, for a total transaction of $14,674,741.33. Following the transaction, the chief executive officer owned 211,559 shares in the company, valued at $22,253,891.21. This represents a 39.74% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anthony P. Lee sold 66,000 shares of the stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $103.89, for a total value of $6,856,740.00. Following the completion of the transaction, the director directly owned 284,488 shares in the company, valued at approximately $29,555,458.32. This represents a 18.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 6,651,690 shares of company stock worth $593,440,562 in the last 90 days. Insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Gordian Capital Singapore Pte Ltd lifted its position in shares of Roblox by 74.8% in the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company’s stock worth $32,000 after buying an additional 240 shares in the last quarter. ORG Partners LLC bought a new stake in Roblox during the 2nd quarter valued at $33,000. Larson Financial Group LLC raised its holdings in shares of Roblox by 819.0% in the 1st quarter. Larson Financial Group LLC now owns 579 shares of the company’s stock valued at $34,000 after purchasing an additional 516 shares in the last quarter. Whipplewood Advisors LLC bought a new position in shares of Roblox in the 2nd quarter worth $34,000. Finally, Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Roblox in the 1st quarter worth approximately $39,000. Institutional investors own 94.46% of the company’s stock.

Roblox Company Profile

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It 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 experience; and Roblox Cloud, which provides services and infrastructure that power the platform.