Roblox (NYSE:RBLX) Stock Price Down 5.2% - Here's What Happened

Key Points

• Roblox shares fell 5.2% to about $46.32, with trading volume 73% below the average daily level.
• Analyst sentiment remains mixed: the consensus rating is “Hold”, with an average price target of $60.79, despite recent upgrades including Needham’s $55 target and “Buy” rating.
• Roblox exceeded quarterly EPS expectations but missed revenue estimates, reporting a $0.26 loss per share and $1.47 billion in revenue; insiders have also sold about $7.5 million of stock over the past three months.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) traded down 5.2% during trading on Friday. The company traded as low as $46.31 and last traded at $46.3150. 3,129,923 shares changed hands during trading, a decline of 73% from the average daily volume of 11,747,419 shares. The stock had previously closed at $48.83.

Analyst Upgrades and Downgrades

Several analysts recently commented on RBLX shares. Cantor Fitzgerald initiated coverage on shares of Roblox in a research note on Monday, June 29th. They set an "overweight" rating for the company. DA Davidson set a $40.00 target price on Roblox in a report on Friday, July 31st. Wall Street Zen raised Roblox from a "sell" rating to a "hold" rating in a report on Saturday, July 18th. Needham & Company LLC increased their price target on Roblox from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, UBS Group set a $40.00 price target on Roblox in a research note on Monday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average price target of $60.79.

Roblox Stock Down 3.8%

The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm has a market capitalization of $31.46 billion, a PE ratio of -32.79 and a beta of 1.47. The business's 50-day moving average price is $43.21 and its 200-day moving average price is $48.94.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping analysts' consensus estimates of ($0.34) by $0.08. The company had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The business's quarterly revenue was up 8.3% on a year-over-year basis. During the same period last year, the business earned ($0.41) EPS. As a group, equities research analysts predict that Roblox Corporation will post -1.39 EPS for the current fiscal year.

Insider Transactions at Roblox

In other news, insider Sean Buckley sold 4,321 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $38.68, for a total value of $167,136.28. Following the completion of the sale, the insider directly owned 87,213 shares of the company's stock, valued at approximately $3,373,398.84. This represents a 4.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 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 $1,995,481.28. Following the completion of the sale, the chief executive officer owned 799,646 shares in the company, valued at approximately $30,354,562.16. The trade was a 6.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 185,236 shares of company stock worth $7,538,642. Insiders own 10.05% of the company's stock.

Hedge Funds Weigh In On Roblox

Large investors have recently bought and sold shares of the stock. Capital International Investors increased its holdings in shares of Roblox by 7.3% during the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after purchasing an additional 2,184,439 shares during the period. Geode Capital Management LLC lifted its stake in shares of Roblox by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock valued at $988,002,000 after buying an additional 547,103 shares during the period. Norges Bank acquired a new stake in Roblox during the fourth quarter worth about $435,424,000. Renaissance Technologies LLC increased its stake in Roblox by 7.5% during the first quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company's stock valued at $403,054,000 after acquiring an additional 497,625 shares during the period. Finally, Amundi lifted its position in shares of Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company's stock worth $326,586,000 after acquiring an additional 2,631,074 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.

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.