Citigroup Cuts Roblox (NYSE:RBLX) Price Target to $60.00

Key Points

• Citigroup lowered Roblox’s price target to $60 from $70 while maintaining a “Buy” rating, implying approximately 59% upside from the reported share price of $37.63.
• Analyst sentiment is mixed: the stock has an overall “Hold” consensus and an average price target of $62.04, with recent target cuts from TD Cowen, B. Riley, and others.
• Roblox exceeded quarterly EPS expectations but missed revenue estimates, reporting a loss of $0.26 per share and revenue of $1.47 billion, up 8.3% year over year. The company also authorized a $3 billion share-repurchase program.

Roblox (NYSE:RBLX - Get Free Report) had its target price reduced by stock analysts at Citigroup from $70.00 to $60.00 in a report released on Monday,Benzinga reports. The firm currently has a "buy" rating on the stock. Citigroup's price target indicates a potential upside of 59.45% from the company's current price.

Other analysts have also issued research reports about the stock. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Roblox in a report on Wednesday, June 24th. TD Cowen decreased their price target on Roblox from $49.00 to $40.00 and set a "hold" rating on the stock in a research report on Friday. Bank of America cut Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target for the company. in a report on Friday, May 1st. B. Riley Financial cut their price objective on Roblox from $80.00 to $45.00 and set a "buy" rating for the company in a research report on Monday. Finally, Canaccord Genuity Group set a $58.00 price objective on Roblox in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $62.04.

Roblox Price Performance

Shares of NYSE:RBLX traded up $2.03 on Monday, hitting $37.63. The stock had a trading volume of 17,077,386 shares, compared to its average volume of 11,716,067. The firm's 50 day moving average price is $49.28 and its 200-day moving average price is $56.79. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. Roblox has a twelve month low of $33.88 and a twelve month high of $142.00. The company has a market capitalization of $25.27 billion, a price-to-earnings ratio of -26.33 and a beta of 1.41.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $1.60 billion. During the same quarter last year, the company posted ($0.41) EPS. The firm's revenue for the quarter was up 8.3% on a year-over-year basis. On average, equities research analysts predict that Roblox will post -1.4 earnings per share for the current year.

Roblox declared that its Board of Directors has approved a share buyback plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Insider Buying and Selling

In other news, CEO David Baszucki sold 50,628 shares of the business's stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $2,292,435.84. Following the completion of the sale, the chief executive officer owned 852,214 shares in the company, valued at $38,588,249.92. The trade was a 5.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Jack Buckley sold 4,744 shares of Roblox stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $46.36, for a total transaction of $219,931.84. Following the sale, the insider owned 97,141 shares of the company's stock, valued at approximately $4,503,456.76. This represents a 4.66% 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. In the last three months, insiders sold 161,983 shares of company stock worth $7,580,990. 10.05% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Reyes Financial Architecture Inc. boosted its position in shares of Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after purchasing an additional 194 shares in the last quarter. Hanson & Doremus Investment Management bought a new stake in shares of Roblox in the 1st quarter valued at $25,000. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox in the 4th quarter valued at $27,000. Basecamp Wealth Advisors LLC raised its stake in Roblox by 98.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock worth $29,000 after buying an additional 252 shares during the period. Finally, GW&K Investment Management LLC lifted its holdings in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after acquiring an additional 161 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: B. Riley lowered its Roblox price target to $45 from $80 but retained a Buy rating, implying roughly 19% upside from the referenced share price. The continued bullish rating provides some support despite the substantial target cut. Benzinga
• Positive Sentiment: Barclays reduced its target to $47 from $60 while assigning an Equal Weight rating. Although the cut signals lower expectations, the target remains above the stock’s recent trading level. Tickerreport analyst update
• Neutral Sentiment: Analysts and market coverage continue to focus on Roblox’s international revenue exposure, which is important for assessing growth, currency risk, and the stability of future results. Zacks international markets analysis
• Negative Sentiment: Wedbush cut Roblox to Neutral, adding to the cautious analyst tone. TD Cowen also lowered its price target to $40, while broader coverage linked Roblox’s recent 52-week-low performance to concerns about short-term execution and profitability. American Banking News Wedbush downgrade
• Negative Sentiment: Several law firms announced or promoted securities-fraud investigations and class-action litigation related to alleged federal securities-law violations. These announcements may weigh on sentiment, although the allegations have not been proven and the financial impact remains uncertain. Investors in the relevant class periods face an August 7 lead-plaintiff deadline. SBS Law lawsuit notice

About Roblox

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.

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