Roblox (NYSE:RBLX) Price Target Cut to $60.00 by Analysts at Citigroup

Roblox (NYSE:RBLX) had its price objective dropped by research analysts at Citigroup from $70.00 to $60.00 in a research note issued on Monday,Benzinga reports. The firm currently has a “buy” rating on the stock. Citigroup’s price objective suggests a potential upside of 59.45% from the stock’s current price.

Several other equities research analysts have also recently commented on the stock. The Goldman Sachs Group cut their price objective on shares of Roblox from $125.00 to $65.00 and set a “buy” rating on the stock in a research report on Friday, May 1st. Canaccord Genuity Group set a $58.00 price target on Roblox in a research note on Friday. UBS Group set a $33.00 price target on Roblox in a report on Friday. Barclays reduced their price objective on Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research report on Monday. Finally, Oppenheimer reiterated an “outperform” rating on shares of Roblox in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $62.04.

Roblox Stock Up 5.7%

RBLX stock traded up $2.03 during mid-day trading on Monday, hitting $37.63. 17,077,386 shares of the company were exchanged, compared to its average volume of 11,716,067. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The firm has a market cap of $25.27 billion, a P/E ratio of -26.33 and a beta of 1.41. The firm’s 50 day simple moving average is $49.28 and its 200 day simple moving average is $56.79. Roblox has a 1-year low of $33.88 and a 1-year high of $142.00.

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

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

Insider Transactions at Roblox

In other Roblox news, insider Mark Reinstra sold 17,275 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $782,212.00. Following the transaction, the insider owned 438,198 shares of the company’s stock, valued at $19,841,605.44. The trade was a 3.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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. Also, CFO Naveen K. Chopra sold 16,863 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $763,556.64. Following the sale, the chief financial officer owned 380,758 shares in the company, valued at approximately $17,240,722.24. This represents a 4.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 161,983 shares of company stock valued at $7,580,990. 10.05% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Allspring Global Investments Holdings LLC raised its holdings in 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 during the period. Glynn Capital Management LLC acquired a new position in shares of Roblox in the fourth quarter valued at approximately $5,706,000. Militia Capital Management LLC acquired a new position in shares of Roblox in the first quarter valued at approximately $2,590,000. Engineers Gate Manager LP increased its stake 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 worth $23,802,000 after purchasing an additional 144,600 shares during the period. Finally, Spyglass Capital Management LLC bought a new position in shares of Roblox during the first quarter worth approximately $44,116,000. 94.46% of the stock is owned by institutional investors and hedge funds.

Key Roblox News

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

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.