B. Riley Financial Cuts Roblox (NYSE:RBLX) Price Target to $45.00

Roblox (NYSE:RBLX) had its price target cut by analysts at B. Riley Financial from $80.00 to $45.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. B. Riley Financial’s target price would indicate a potential upside of 20.09% from the company’s previous close.

RBLX has been the topic of several other research reports. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a research report on Saturday, July 18th. BTIG Research cut shares of Roblox from a “neutral” rating to a “sell” rating and set a $30.00 price objective on the stock. in a research report on Friday. HSBC downgraded shares of Roblox from a “buy” rating to a “hold” rating and set a $46.00 target price on the stock. in a research note on Friday, May 1st. Wells Fargo & Company set a $46.00 price target on shares of Roblox in a research note on Monday. Finally, UBS Group set a $33.00 price target on shares of Roblox in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $62.39.

Roblox Price Performance

Shares of Roblox stock traded up $1.87 during trading hours on Monday, reaching $37.47. The company’s stock had a trading volume of 11,911,557 shares, compared to its average volume of 11,682,000. The firm has a 50 day moving average price of $49.28 and a 200-day moving average price of $56.79. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. The stock has a market cap of $25.17 billion, a P/E ratio of -26.17 and a beta of 1.41. Roblox has a one year low of $33.88 and a one year high of $142.00.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating 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 firm had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. During the same quarter last year, the firm earned ($0.41) EPS. The firm’s revenue for the quarter was up 8.3% compared to the same quarter last year. On average, analysts predict that Roblox will post -1.4 EPS for the current year.

Roblox announced that its board has initiated a stock repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Roblox news, insider Matthew D. Kaufman sold 14,356 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the transaction, the insider directly owned 349,964 shares in the company, valued at $15,842,870.28. This trade represents a 3.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,275 shares of Roblox stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total value of $782,212.00. Following the sale, the insider directly owned 438,198 shares of the company’s stock, valued at approximately $19,841,605.44. This trade represents a 3.79% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 161,983 shares of company stock worth $7,580,990. 10.05% of the stock is owned by company insiders.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the company. Allspring Global Investments Holdings LLC lifted its holdings in Roblox by 379.8% during the first quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock worth $53,102,000 after buying an additional 729,379 shares during the period. Glynn Capital Management LLC purchased a new position in Roblox in the fourth quarter valued at about $5,706,000. Militia Capital Management LLC bought a new position in Roblox in the first quarter worth about $2,590,000. Engineers Gate Manager LP lifted its position in shares of Roblox by 97.0% during the fourth quarter. Engineers Gate Manager LP now owns 293,744 shares of the company’s stock valued at $23,802,000 after buying an additional 144,600 shares during the last quarter. Finally, Spyglass Capital Management LLC purchased a new stake in shares of Roblox during the first quarter valued at about $44,116,000. 94.46% of the stock is currently owned by institutional investors.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: A Zacks analysis is examining Roblox’s dependence on international revenue, highlighting its importance to financial stability and future growth while leaving the ultimate stock impact dependent on execution and regional performance. International Markets and Roblox: A Deep Dive for 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.