Citigroup Cuts Roblox (NYSE:RBLX) Price Target to $105.00

Roblox (NYSE:RBLX) had its price objective decreased by investment analysts at Citigroup from $119.00 to $105.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price target points to a potential upside of 76.95% from the stock’s previous close.

Several other research analysts also recently commented on RBLX. JPMorgan Chase & Co. reduced their price objective on Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a report on Friday, February 6th. Roth Mkm raised Roblox from a “neutral” rating to a “buy” rating and increased their price target for the stock from $78.00 to $84.00 in a research report on Monday, February 9th. The Goldman Sachs Group cut their price target on Roblox from $180.00 to $140.00 and set a “buy” rating on the stock in a research note on Friday, February 6th. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a report on Monday, December 29th. Finally, Jefferies Financial Group set a $85.00 price objective on shares of Roblox in a research note on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Roblox currently has an average rating of “Moderate Buy” and a consensus price target of $116.81.

Roblox Trading Up 0.3%

RBLX stock traded up $0.17 during trading on Tuesday, hitting $59.34. The company had a trading volume of 2,123,847 shares, compared to its average volume of 12,437,794. Roblox has a 52-week low of $50.10 and a 52-week high of $150.59. The company has a 50 day simple moving average of $69.41 and a 200-day simple moving average of $96.78. The firm has a market capitalization of $39.26 billion, a P/E ratio of -38.30 and a beta of 1.62. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.49) by $0.04. The company had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $2.08 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm’s quarterly revenue was up 122.6% on a year-over-year basis. During the same period in the previous year, the company earned ($0.33) EPS. As a group, research analysts forecast that Roblox will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Arvind Chakravarthy sold 40,646 shares of the company’s stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total transaction of $2,732,630.58. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Mark Reinstra sold 60,000 shares of the stock in a transaction on Friday, February 13th. The shares were sold at an average price of $63.94, for a total value of $3,836,400.00. Following the sale, the insider owned 394,322 shares of the company’s stock, valued at approximately $25,212,948.68. This represents a 13.21% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 703,144 shares of company stock worth $51,681,640 over the last 90 days. 12.92% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in RBLX. WPG Advisers LLC grew its stake in shares of Roblox by 17.8% during the third quarter. WPG Advisers LLC now owns 555 shares of the company’s stock worth $77,000 after acquiring an additional 84 shares during the last quarter. Baird Financial Group Inc. raised its holdings in shares of Roblox by 1.4% in the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after buying an additional 102 shares during the last quarter. Sunbelt Securities Inc. lifted its stake in shares of Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after buying an additional 105 shares during the period. Lido Advisors LLC grew its holdings in shares of Roblox by 1.3% during the second quarter. Lido Advisors LLC now owns 8,529 shares of the company’s stock valued at $897,000 after buying an additional 106 shares during the last quarter. Finally, Brown Brothers Harriman & Co. increased its position in shares of Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after acquiring an additional 110 shares during the period. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

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.