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

Key Points

• Roblox shares rose 8.4% and moved above their 50-day moving average, reaching an intraday high of $49.54 after B. Riley raised its price target from $45 to $51 and maintained a Buy rating.
• Analyst views remain mixed: Roblox has a consensus Hold rating and an average price target of $53.04, with 12 analysts rating it Hold, 13 Buy or Strong Buy, and five Sell.
• In its latest quarter, Roblox lost $0.32 per share—less than analysts expected—but revenue of $1.57 billion fell short of estimates; revenue grew 15.6% year over year.

Roblox Corporation (NYSE:RBLX - Get Free Report)'s stock price crossed 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 traded.

A number of other research firms also recently weighed in on RBLX. Wolfe Research raised Roblox from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 30th. DA Davidson decreased their price objective on Roblox from $50.00 to $48.00 and set a "neutral" rating for the company in a research note on Monday. Weiss Ratings raised Roblox from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, October 30th. Moffett Nathanson restated a "neutral" rating and set a $40.00 target price (down from $88.00) on shares of Roblox in a report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft lowered Roblox from a "buy" rating to a "hold" rating and decreased their target price for the stock from $56.00 to $38.00 in a research report on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, twelve have issued a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, Roblox currently has a consensus rating of "Hold" and an average target price of $53.04.

Insiders Place Their Bets

In related news, CFO Naveen Chopra sold 17,509 shares of the firm's stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $664,641.64. Following the sale, the chief financial officer owned 363,249 shares of the company's stock, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $42.87, for a total value of $714,471.42. Following the completion of the transaction, the director directly owned 1,252,836 shares of the company's stock, valued at approximately $53,709,079.32. The trade was a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 169,724 shares of company stock worth $6,659,063 over the last 90 days. 10.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Roblox

A number of large investors have recently bought and sold shares of the business. Assenagon Asset Management S.A. lifted its position in Roblox by 216.4% during the 3rd quarter. Assenagon Asset Management S.A. now owns 5,992,101 shares of the company's stock worth $253,885,000 after buying an additional 4,098,311 shares in the last quarter. Allspring Global Investments Holdings LLC grew its holdings in shares of Roblox by 379.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company's stock valued at $53,102,000 after acquiring an additional 729,379 shares in the last quarter. PensionDanmark Pensionsforsikringsaktieselskab grew its holdings in shares of Roblox by 35.5% in the 2nd quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company's stock valued at $7,076,000 after acquiring an additional 34,120 shares in the last quarter. Readystate Asset Management LP increased its position in shares of Roblox by 685.8% in the second quarter. Readystate Asset Management LP now owns 377,201 shares of the company's stock valued at $20,512,000 after acquiring an additional 329,201 shares during the last quarter. Finally, Odyssean LLC increased its position in shares of Roblox by 344.4% in the second quarter. Odyssean LLC now owns 40,038 shares of the company's stock valued at $2,177,000 after acquiring an additional 31,029 shares during the last quarter. 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 P/E ratio of -35.70 and a beta of 1.45. The company has a quick ratio of 0.82, a current ratio of 0.80 and a debt-to-equity ratio of 7.82. The firm has a fifty day moving average of $46.77 and a 200-day moving average of $52.12.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share for the quarter, beating analysts' consensus estimates of ($0.43) by $0.11. The firm had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.63 billion. Roblox had a negative return on equity of 417.56% and a negative net margin of 16.48%. The business's revenue was up 15.6% compared to the same quarter last year. During the same period last year, the company earned ($0.37) earnings per share. On average, equities research analysts anticipate that Roblox Corporation will post -1.38 earnings per share for the current year.

Roblox Company Profile

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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