BTIG Research Issues Pessimistic Forecast for Roblox (NYSE:RBLX) Stock Price

Key Points

• BTIG Research cut its price target for Roblox from $174 to $141 while keeping a "buy" rating, a target the report says implies roughly a 95% upside from the stock's current price (around $72).
• Q3 results showed revenue of $1.36 billion (missing the $1.64 billion estimate) while EPS of -$0.37 beat expectations, revenue was up 70.3% year-over-year, but the company remains unprofitable with a negative net margin and negative return on equity.
• Insider selling has been significant—504,300 shares worth about $46.3 million were sold in the last three months (insiders now own 12.92%), while institutional investors hold roughly 94.46% of the stock.

Roblox (NYSE:RBLX - Get Free Report) had its price objective dropped by BTIG Research from $174.00 to $141.00 in a report issued on Wednesday, MarketBeat reports. The firm presently has a "buy" rating on the stock. BTIG Research's target price would indicate a potential upside of 95.34% from the stock's current price.

A number of other brokerages have also issued reports on RBLX. BMO Capital Markets boosted their target price on shares of Roblox from $150.00 to $160.00 and gave the stock an "outperform" rating in a research report on Thursday, October 2nd. Benchmark restated a "hold" rating on shares of Roblox in a research report on Friday, October 31st. The Goldman Sachs Group raised shares of Roblox from a "neutral" rating to a "buy" rating and upped their price objective for the company from $155.00 to $180.00 in a research report on Friday, October 31st. TD Cowen reiterated a "sell" rating on shares of Roblox in a research note on Tuesday. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research note on Monday, December 29th. Seventeen research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Roblox presently has a consensus rating of "Moderate Buy" and a consensus price target of $133.77.

Roblox Trading Down 2.5%

Shares of NYSE:RBLX opened at $72.18 on Wednesday. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96. The stock's 50-day moving average is $85.21 and its 200-day moving average is $110.64. The company has a market cap of $47.27 billion, a P/E ratio of -50.48 and a beta of 1.64. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings data on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, topping the consensus estimate of ($0.44) by $0.07. The business had revenue of $1.36 billion during the quarter, compared to analysts' expectations of $1.64 billion. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.The firm's revenue was up 70.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.37) EPS. Equities research analysts predict that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling at Roblox

In other Roblox news, insider Matthew D. Kaufman sold 20,867 shares of Roblox stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $96.10, for a total transaction of $2,005,318.70. Following the completion of the transaction, the insider directly owned 239,775 shares of the company's stock, valued at approximately $23,042,377.50. This trade represents a 8.01% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Anthony P. Lee sold 66,000 shares of the company's stock in a transaction dated Tuesday, November 4th. The stock was sold at an average price of $104.07, for a total transaction of $6,868,620.00. Following the completion of the sale, the director directly owned 266,008 shares in the company, valued at approximately $27,683,452.56. The trade was a 19.88% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 504,300 shares of company stock worth $46,290,436 over the last three months. 12.92% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roblox

Large investors have recently bought and sold shares of the business. Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Roblox during the third quarter worth $26,000. Whittier Trust Co. of Nevada Inc. acquired a new position in Roblox during the 3rd quarter worth about $37,000. Total Investment Management Inc. bought a new stake in Roblox during the 2nd quarter worth about $29,000. Root Financial Partners LLC acquired a new stake in Roblox in the 3rd quarter valued at about $38,000. Finally, Sunbelt Securities Inc. raised its stake in shares of Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after acquiring an additional 105 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

Roblox Company Profile

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.

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.