Roblox (NYSE:RBLX) Stock Price Breaks Above 50-Day Moving Average After Analyst Downgrade

Shares of Roblox Corporation (NYSE:RBLX) passed above its fifty day moving average during trading on Wednesday after B. Riley Financial raised their price target on the stock from $45.00 to $51.00. The stock has a fifty day moving average of $46.77 and traded as high as $49.54. B. Riley Financial currently has a buy rating on the stock. Roblox shares last traded at $49.2680, with a volume of 9,214,548 shares trading hands.

Several other research firms have also weighed in on RBLX. Piper Sandler restated a “neutral” rating and set a $47.00 price objective (down from $50.00) on shares of Roblox in a research note on Friday, July 31st. Bank of America upped their price objective on Roblox from $44.00 to $48.00 and gave the company a “neutral” rating in a research note on Monday, September 14th. Wells Fargo & Company cut Roblox from an “overweight” rating to a “cautious” rating in a research report on Monday, October 12th. Weiss Ratings raised Roblox from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, October 30th. Finally, Jefferies Financial Group downgraded Roblox from a “hold” rating to an “underperform” rating and set a $38.00 price target for the company. in a report on Monday, September 28th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, twelve have assigned a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat, Roblox has an average rating of “Hold” and a consensus target price of $53.04.

Insider Activity at Roblox

In other Roblox news, CEO David Baszucki sold 52,568 shares of the company’s stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value 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 represents a 6.17% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $680,774.64. Following the transaction, the insider owned 398,064 shares in the company, valued at $15,110,509.44. The trade was a 4.31% 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. Insiders have sold 169,724 shares of company stock valued at $6,659,063 in the last 90 days. Corporate insiders own 10.05% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently bought and sold shares of RBLX. Basecamp Wealth Advisors LLC boosted its holdings in Roblox by 98.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after purchasing an additional 252 shares during the period. Root Financial Partners LLC grew its position in shares of Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after purchasing an additional 283 shares in the last quarter. Activest Wealth Management raised its position in shares of Roblox by 72.9% in the third quarter. Activest Wealth Management now owns 588 shares of the company’s stock valued at $25,000 after buying an additional 248 shares in the last quarter. Western Wealth Management LLC bought a new stake in shares of Roblox in the first quarter valued at approximately $33,000. Finally, Atlantic Private Wealth LLC acquired a new stake in Roblox during the first quarter worth approximately $35,000. 94.46% of the stock is owned by institutional investors.

Roblox Stock Up 8.4%

The firm has a market cap of $33.08 billion, a price-to-earnings ratio of -35.70 and a beta of 1.45. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.80 and a quick ratio of 0.82. The stock has a 50-day moving average of $46.77 and a 200-day moving average of $52.12.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, October 29th. The company reported ($0.32) earnings per share for the quarter, beating the consensus estimate of ($0.43) by $0.11. The firm had revenue of $1.57 billion during the quarter, compared to analysts’ expectations of $1.63 billion. Roblox had a negative return on equity of 417.56% and a negative net margin of 16.48%. The company’s quarterly revenue was up 15.6% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.37) EPS. Sell-side analysts predict that Roblox Corporation will post -1.38 EPS for the current fiscal year.

About Roblox

Roblox Corporation operates Roblox, an online platform where users can create, publish, and participate in interactive digital experiences. The platform supports a broad range of user-generated content, including games, social spaces, entertainment, educational activities, and virtual events.

Roblox provides development tools through Roblox Studio, enabling creators and developers to design experiences and build virtual items and environments. Users can customize avatars, communicate with others, and access content across computers, mobile devices, consoles, and other supported platforms.