Roblox (NYSE:RBLX) Cut to Sell at Wall Street Zen

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

A number of other equities analysts have also issued reports on RBLX. Piper Sandler reaffirmed an “overweight” rating and issued a $100.00 target price (down from $125.00) on shares of Roblox in a research report on Friday, February 6th. TD Cowen reaffirmed a “sell” rating on shares of Roblox in a report on Tuesday, January 27th. BMO Capital Markets reiterated an “outperform” rating on shares of Roblox in a research note on Friday, February 6th. UBS Group set a $74.00 price objective on shares of Roblox in a report on Friday, February 6th. Finally, Jefferies Financial Group set a $85.00 target price on shares of Roblox in a research note on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $119.44.

Roblox Price Performance

RBLX stock opened at $68.46 on Friday. The stock has a 50-day moving average price of $73.63 and a two-hundred day moving average price of $101.70. The company has a market cap of $45.29 billion, a PE ratio of -44.17 and a beta of 1.63. 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 $50.10 and a 12-month high of $150.59.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.04. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company’s revenue was up 122.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.33) earnings per share. As a group, research analysts predict that Roblox will post -1.49 EPS for the current year.

Insider Transactions at Roblox

In other Roblox news, insider Arvind Chakravarthy sold 40,646 shares of the business’s stock in a transaction dated 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 document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO David Baszucki sold 10,834 shares of the firm’s stock in a transaction that occurred on Friday, February 20th. The shares were sold at an average price of $61.63, for a total transaction of $667,699.42. Following the completion of the sale, the chief executive officer owned 800,539 shares in the company, valued at $49,337,218.57. The trade was a 1.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 769,144 shares of company stock worth $57,789,280 over the last 90 days. Corporate insiders own 12.92% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. National Pension Service grew its stake in shares of Roblox by 7.3% in the 3rd quarter. National Pension Service now owns 1,697,820 shares of the company’s stock valued at $235,182,000 after buying an additional 115,096 shares in the last quarter. Vanguard Group Inc. raised its position in Roblox by 2.6% during the second quarter. Vanguard Group Inc. now owns 59,153,925 shares of the company’s stock valued at $6,222,993,000 after acquiring an additional 1,513,608 shares in the last quarter. SG Americas Securities LLC lifted its stake in Roblox by 298.4% in the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company’s stock valued at $45,617,000 after acquiring an additional 246,652 shares during the last quarter. Westfield Capital Management Co. LP bought a new stake in Roblox in the second quarter worth approximately $120,041,000. Finally, Tokio Marine Asset Management Co. Ltd. acquired a new position in shares of Roblox during the 3rd quarter worth $2,895,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.