The Goldman Sachs Group Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its target price reduced by research analysts at The Goldman Sachs Group from $140.00 to $125.00 in a research note issued on Wednesday, Marketbeat.com reports. The firm presently has a “buy” rating on the stock. The Goldman Sachs Group’s target price indicates a potential upside of 125.60% from the company’s previous close.

RBLX has been the subject of several other research reports. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a research note on Friday, March 27th. Jefferies Financial Group set a $85.00 price objective on shares of Roblox in a research note on Thursday, January 15th. Deutsche Bank Aktiengesellschaft set a $115.00 price objective on shares of Roblox in a research note on Tuesday, January 20th. Oppenheimer decreased their price objective on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating for the company in a research note on Friday, February 6th. Finally, Freedom Capital raised shares of Roblox from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $115.36.

Roblox Stock Down 7.1%

Shares of NYSE:RBLX opened at $55.41 on Wednesday. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65. Roblox has a 12 month low of $51.23 and a 12 month high of $150.59. The company has a 50-day moving average price of $60.17 and a 200 day moving average price of $82.65. The company has a market cap of $37.05 billion, a price-to-earnings ratio of -35.75 and a beta of 1.67.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, beating analysts’ consensus estimates of ($0.49) by $0.04. The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm’s revenue for the quarter was up 122.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.33) EPS. As a group, equities research analysts predict that Roblox will post -1.61 earnings per share for the current year.

Insider Activity

In other news, insider Arvind Chakravarthy sold 40,646 shares of Roblox stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total transaction of $965,794.70. Following the sale, the director directly owned 1,302,834 shares of the company’s stock, valued at $75,499,230.30. This represents a 1.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 551,996 shares of company stock valued at $38,421,146. Insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently modified their holdings of the stock. Patriot Financial Group Insurance Agency LLC raised its stake in shares of Roblox by 159.1% during the first quarter. Patriot Financial Group Insurance Agency LLC now owns 6,656 shares of the company’s stock valued at $376,000 after acquiring an additional 4,087 shares in the last quarter. Venturi Wealth Management LLC raised its stake in Roblox by 258.9% in the first quarter. Venturi Wealth Management LLC now owns 30,236 shares of the company’s stock worth $1,710,000 after buying an additional 21,812 shares in the last quarter. Pinnacle Wealth Management Advisory Group LLC bought a new position in Roblox in the first quarter worth approximately $343,000. Aaron Wealth Advisors LLC raised its stake in Roblox by 80.0% in the first quarter. Aaron Wealth Advisors LLC now owns 5,143 shares of the company’s stock worth $291,000 after buying an additional 2,285 shares in the last quarter. Finally, Kestra Private Wealth Services LLC raised its stake in Roblox by 17.1% in the first quarter. Kestra Private Wealth Services LLC now owns 11,568 shares of the company’s stock worth $654,000 after buying an additional 1,693 shares in the last quarter. Institutional investors 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.