Roblox (NYSE:RBLX) Price Target Cut to $48.00 by Analysts at DA Davidson

Key Points

• DA Davidson cut Roblox’s price target from $50 to $48 while maintaining a “neutral” rating, implying 10.89% potential upside from the stock’s $43.29 price.
• Analyst sentiment is mixed: Roblox has a consensus “Hold” rating and an average price target of $53.12, with recent targets ranging from $45 to $84.
• Roblox exceeded quarterly EPS expectations but missed revenue estimates, reporting an adjusted loss of $0.32 per share and revenue of $1.57 billion, up 15.6% year over year.

Roblox (NYSE:RBLX - Get Free Report) had its target price reduced by DA Davidson from $50.00 to $48.00 in a report released on Monday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. DA Davidson's price objective indicates a potential upside of 10.89% from the company's current price.

Several other research analysts have also recently issued reports on RBLX. UBS Group cut their price objective on Roblox from $53.00 to $50.00 and set a "neutral" rating for the company in a research report on Friday. B. Riley Financial reduced their price objective on shares of Roblox from $80.00 to $45.00 and set a "buy" rating for the company in a research note on Monday, August 3rd. The Goldman Sachs Group reissued a "buy" rating and set a $55.00 price objective on shares of Roblox in a report on Friday. Wolfe Research upgraded shares of Roblox from a "hold" rating to a "strong-buy" rating in a research report on Friday. Finally, Roth Capital reaffirmed a "buy" rating and issued a $84.00 target price (up from $78.00) on shares of Roblox in a report on Monday, October 26th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, twelve have given a Hold rating and five have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $53.12.

Roblox Stock Performance

RBLX stock traded up $0.30 during trading on Monday, hitting $43.29. The company had a trading volume of 4,783,411 shares, compared to its average volume of 11,732,815. The firm has a 50-day moving average price of $46.34 and a 200-day moving average price of $52.69. Roblox has a 1-year low of $33.88 and a 1-year high of $113.60. The firm has a market cap of $29.06 billion, a PE ratio of -31.39 and a beta of 1.45. 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 (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.11. The business 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 303.93% 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 quarter in the prior year, the business earned ($0.37) earnings per share. On average, analysts expect that Roblox will post -1.41 earnings per share for the current year.

Insider Activity

In related news, CFO Naveen Chopra sold 17,509 shares of Roblox stock in a transaction dated Thursday, August 20th. The stock was 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 owned 363,249 shares in the company, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Buckley sold 4,321 shares of the company'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 transaction of $167,136.28. Following the transaction, the insider directly owned 87,213 shares in the company, valued at $3,373,398.84. The trade was a 4.72% 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 have sold a total of 186,390 shares of company stock worth $7,283,371 in the last quarter. Corporate insiders own 10.05% of the company's stock.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently added to or reduced their stakes in RBLX. Basecamp Wealth Advisors LLC raised its holdings in shares of Roblox by 98.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock worth $29,000 after purchasing an additional 252 shares during the period. Root Financial Partners LLC lifted its stake in shares of Roblox by 100.7% in the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after purchasing an additional 283 shares in the last quarter. Activest Wealth Management lifted its stake in shares of Roblox by 72.9% in the 3rd quarter. Activest Wealth Management now owns 588 shares of the company's stock valued at $25,000 after purchasing an additional 248 shares in the last quarter. Western Wealth Management LLC purchased a new stake in shares of Roblox during the 1st quarter worth about $33,000. Finally, Atlantic Private Wealth LLC purchased a new stake in shares of Roblox during the 1st quarter worth about $35,000. Hedge funds and other institutional investors own 94.46% of the company's stock.

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.

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