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

Key Points

• Wall Street Zen downgraded Roblox from “Hold” to “Sell,” adding to a mixed analyst outlook. MarketBeat reports an overall “Hold” consensus and an average price target of $60.79.
• Roblox opened at $44.12, while its latest quarter showed an adjusted loss of $0.26 per share and revenue of $1.47 billion, below the $1.60 billion consensus estimate. The company remains unprofitable, with an expected full-year EPS loss of $1.39.
• Insiders sold 185,236 shares worth approximately $7.3 million during the last quarter, while institutional investors collectively own 94.46% of Roblox. CFO Naveen Chopra’s sale was reportedly made to cover tax obligations, and another insider’s sale occurred under a pre-arranged trading plan.

Roblox (NYSE:RBLX - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

RBLX has been the topic of several other research reports. Piper Sandler reiterated a "neutral" rating and set a $47.00 price objective (down from $50.00) on shares of Roblox in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft downgraded Roblox from a "buy" rating to a "hold" rating and reduced their target price for the company from $56.00 to $38.00 in a research note on Friday, July 31st. Moffett Nathanson reaffirmed a "neutral" rating and issued a $40.00 target price on shares of Roblox in a research report on Monday, August 3rd. B. Riley Financial cut their price target on Roblox from $80.00 to $45.00 and set a "buy" rating on the stock in a report on Monday, August 3rd. Finally, Jefferies Financial Group lowered Roblox from a "hold" rating to an "underperform" rating and set a $38.00 price target on the stock. in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $60.79.

Roblox Stock Performance

NYSE:RBLX opened at $44.12 on Friday. The company has a fifty day moving average of $42.34 and a 200-day moving average of $48.35. The firm has a market capitalization of $29.56 billion, a P/E ratio of -30.85 and a beta of 1.47. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. Roblox has a twelve month low of $33.88 and a twelve month high of $141.95.

Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. Roblox's quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.41) EPS. As a group, sell-side analysts anticipate that Roblox will post -1.39 EPS for the current year.

Insider Activity at Roblox

In other news, CFO Naveen Chopra sold 17,509 shares of the business's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $664,641.64. Following the completion of the sale, the chief financial officer directly owned 363,249 shares of the company's stock, valued at $13,788,932.04. The trade was a 4.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 5,773 shares of the firm's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $44.80, for a total transaction of $258,630.40. Following the completion of the transaction, the insider directly owned 392,291 shares in the company, valued at approximately $17,574,636.80. The trade was a 1.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 185,236 shares of company stock valued at $7,291,652 over the last quarter. 10.05% of the stock is currently owned by company insiders.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently modified their holdings of RBLX. Capital International Investors boosted its position in shares of Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock valued at $2,589,282,000 after buying an additional 2,184,439 shares during the last quarter. Renaissance Technologies LLC grew its holdings in Roblox by 7.5% during the first quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company's stock worth $403,054,000 after buying an additional 497,625 shares in the last quarter. Amundi raised its position in Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company's stock valued at $326,586,000 after buying an additional 2,631,074 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its position 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 valued at $251,798,000 after buying an additional 416,206 shares during the last quarter. Finally, Artisan Partners Limited Partnership lifted its stake in Roblox by 18.9% during the 4th quarter. Artisan Partners Limited Partnership now owns 2,292,340 shares of the company's stock valued at $185,748,000 after acquiring an additional 365,125 shares in the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.