Moffett Nathanson Downgrades Roblox (NYSE:RBLX) to Sell

Roblox (NYSE:RBLX) was downgraded by stock analysts at Moffett Nathanson from a “neutral” rating to a “sell” rating in a report released on Friday,Briefing.com Automated Import reports. They currently have a $34.00 target price on the stock. Moffett Nathanson’s price objective would suggest a potential downside of 49.33% from the company’s previous close.

Several other brokerages also recently commented on RBLX. Barclays lifted their target price on shares of Roblox from $40.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. Benchmark boosted their price objective on Roblox from $44.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Wedbush reaffirmed an “outperform” rating and issued a $49.00 target price on shares of Roblox in a report on Friday, October 25th. The Goldman Sachs Group upped their price target on Roblox from $45.00 to $55.00 and gave the stock a “neutral” rating in a report on Friday, November 1st. Finally, HSBC began coverage on shares of Roblox in a research note on Thursday, December 12th. They issued a “buy” rating and a $63.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, six have issued a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $60.43.

Roblox Price Performance

Shares of NYSE:RBLX opened at $67.10 on Friday. The stock has a market capitalization of $40.77 billion, a P/E ratio of -40.92 and a beta of 1.46. The business has a 50-day moving average of $62.14 and a two-hundred day moving average of $50.44. Roblox has a fifty-two week low of $29.55 and a fifty-two week high of $75.74. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share for the quarter, topping the consensus estimate of ($0.46) by $0.13. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. On average, equities research analysts predict that Roblox will post -1.56 EPS for the current fiscal year.

Insider Buying and Selling at Roblox

In related news, CAO Amy Marie Rawlings sold 6,054 shares of Roblox stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $51.43, for a total transaction of $311,357.22. Following the completion of the transaction, the chief accounting officer now directly owns 85,008 shares of the company’s stock, valued at $4,371,961.44. This trade represents a 6.65 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Michael Guthrie sold 40,000 shares of the business’s stock in a transaction dated Friday, November 15th. The shares were sold at an average price of $52.07, for a total transaction of $2,082,800.00. Following the completion of the transaction, the chief financial officer now owns 352,844 shares in the company, valued at approximately $18,372,587.08. This trade represents a 10.18 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 1,306,335 shares of company stock valued at $77,348,316. 22.15% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

A number of hedge funds and other institutional investors have recently bought and sold shares of RBLX. Versant Capital Management Inc grew its holdings in shares of Roblox by 83.9% during the fourth quarter. Versant Capital Management Inc now owns 524 shares of the company’s stock worth $30,000 after purchasing an additional 239 shares during the last quarter. V Square Quantitative Management LLC acquired a new position in Roblox during the 3rd quarter worth about $27,000. Frazier Financial Advisors LLC grew its holdings in Roblox by 20,800.0% during the 3rd quarter. Frazier Financial Advisors LLC now owns 627 shares of the company’s stock worth $28,000 after acquiring an additional 624 shares during the last quarter. Parkside Financial Bank & Trust increased its position in Roblox by 44.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 747 shares of the company’s stock valued at $43,000 after acquiring an additional 230 shares in the last quarter. Finally, GAMMA Investing LLC raised its stake in shares of Roblox by 132.8% in the third quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after acquiring an additional 530 shares during the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.