Wall Street Zen Upgrades Roblox (NYSE:RBLX) to Hold

Roblox (NYSE:RBLX) was upgraded by stock analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a research note issued to investors on Sunday, Wall Street Zen reports.

Several other research analysts also recently weighed in on the company. Morgan Stanley cut their price target on Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a report on Friday, July 31st. Citigroup reduced their price target on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. Needham & Company LLC raised their price objective on Roblox from $50.00 to $55.00 and gave the stock a “buy” rating in a report on Wednesday, September 23rd. Barclays lowered their price objective on Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research report on Monday, August 3rd. Finally, Bank of America lifted their price objective on Roblox from $44.00 to $48.00 and gave the company a “neutral” rating in a research report on Monday, September 14th. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, thirteen have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat, Roblox has an average rating of “Hold” and a consensus price target of $60.79.

Roblox Stock Performance

NYSE:RBLX opened at $49.65 on Friday. The firm has a 50 day simple moving average of $42.56 and a 200-day simple moving average of $47.84. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The firm has a market cap of $33.26 billion, a PE ratio of -34.72 and a beta of 1.47. Roblox has a 1-year low of $33.88 and a 1-year high of $141.95.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter in the prior year, the firm posted ($0.41) earnings per share. The company’s quarterly revenue was up 8.3% compared to the same quarter last year. On average, equities analysts expect that Roblox will post -1.39 EPS for the current year.

Insiders Place Their Bets

In related news, insider Sean Buckley sold 4,321 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $38.68, for a total value of $167,136.28. Following the completion of the sale, the insider directly owned 87,213 shares in the company, valued at approximately $3,373,398.84. The trade was a 4.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 shares of the company’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 $1,995,481.28. Following the transaction, the chief executive officer directly owned 799,646 shares of the company’s stock, valued at $30,354,562.16. This trade represents a 6.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders sold 186,390 shares of company stock valued at $7,283,371. 10.05% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently made changes to their positions in the stock. Renaissance Technologies LLC grew its holdings in Roblox by 7.5% during the 1st quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company’s stock valued at $403,054,000 after purchasing an additional 497,625 shares in the last quarter. Amundi increased its stake in Roblox by 83.7% during the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock worth $326,586,000 after buying an additional 2,631,074 shares during the period. Sumitomo Mitsui Trust Group Inc. lifted its holdings in Roblox by 10.3% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 4,451,881 shares of the company’s stock worth $251,798,000 after buying an additional 416,206 shares in the last quarter. Amova Asset Management Americas Inc. lifted its holdings in Roblox by 17.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,238,160 shares of the company’s stock worth $183,247,000 after buying an additional 469,379 shares in the last quarter. Finally, Artisan Partners Limited Partnership lifted its holdings in Roblox by 18.9% in the 4th quarter. Artisan Partners Limited Partnership now owns 2,292,340 shares of the company’s stock worth $185,748,000 after buying an additional 365,125 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

About Roblox

Roblox Corporation (NYSE:RBLX) operates an online entertainment platform where users can create, share and experience interactive 3D content. The platform hosts user-generated games and other virtual experiences across genres, including entertainment, social activities, education and simulated environments.

Roblox provides development tools through Roblox Studio, enabling creators to build and publish experiences, digital items and other content. Users can customize avatars, interact with others and access the platform across supported computers, mobile devices, gaming consoles and virtual reality systems.