Zacks Investment Research Downgrades Roblox (NYSE:RBLX) to Sell


Roblox logoRoblox (NYSE:RBLX – Get Rating) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Wednesday, Zacks.com reports.

According to Zacks, “Roblox Corporation develops and operates an online entertainment platform. It offers Roblox Client, an application that allows users to explore 3D digital worlds; and Roblox Studio, a toolset which allows developers and creators to build, publish and operate 3D experiences and other content. The company also provides Roblox Cloud, a solution which provides services and infrastructure to power the human co-experience platform. Roblox Corporation is based in San Mateo, California. “

Several other analysts have also recently weighed in on the stock. Bank of America initiated coverage on shares of Roblox in a report on Monday, February 14th. They issued a “buy” rating and a $84.00 price target on the stock. The Goldman Sachs Group cut shares of Roblox from a “buy” rating to a “neutral” rating and reduced their price target for the company from $108.00 to $50.00 in a research report on Tuesday, April 19th. MKM Partners started coverage on shares of Roblox in a report on Wednesday, March 30th. They issued a “neutral” rating and a $55.00 price objective for the company. Morgan Stanley reduced their target price on Roblox from $65.00 to $32.00 in a report on Wednesday, April 27th. Finally, Stifel Nicolaus decreased their target price on Roblox from $65.00 to $53.00 in a research report on Tuesday, May 3rd. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat.com, Roblox has a consensus rating of “Hold” and an average target price of $63.47.

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RBLX stock opened at $23.19 on Wednesday. The stock has a market capitalization of $12.54 billion, a price-to-earnings ratio of -21.28 and a beta of 2.29. The firm’s 50-day moving average price is $40.94 and its two-hundred day moving average price is $71.31. The company has a current ratio of 1.73, a quick ratio of 1.73 and a debt-to-equity ratio of 1.67. Roblox has a 12-month low of $21.65 and a 12-month high of $141.60.

Roblox (NYSE:RBLX – Get Rating) last announced its quarterly earnings results on Tuesday, May 10th. The company reported ($0.27) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.05). The business had revenue of $631.21 million for the quarter, compared to analysts’ expectations of $649.48 million. Roblox had a negative net margin of 25.62% and a negative return on equity of 84.32%. The firm’s revenue for the quarter was down 3.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.46) EPS. Equities analysts predict that Roblox will post -0.96 EPS for the current year.

In related news, CFO Michael Guthrie sold 2,998 shares of Roblox stock in a transaction dated Tuesday, February 22nd. The stock was sold at an average price of $46.87, for a total value of $140,516.26. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Craig Donato sold 5,000 shares of the company’s stock in a transaction dated Friday, February 18th. The shares were sold at an average price of $54.00, for a total transaction of $270,000.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 15,930 shares of company stock worth $797,939. 28.22% of the stock is currently owned by company insiders.

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Institutional investors have recently modified their holdings of the stock. Baystate Wealth Management LLC boosted its holdings in Roblox by 175.0% in the fourth quarter. Baystate Wealth Management LLC now owns 275 shares of the company’s stock worth $28,000 after purchasing an additional 175 shares during the last quarter. City State Bank bought a new position in shares of Roblox during the 4th quarter valued at $31,000. North Star Investment Management Corp. purchased a new position in shares of Roblox in the 4th quarter worth $33,000. Gordian Capital Singapore Pte Ltd bought a new stake in shares of Roblox in the fourth quarter worth $34,000. Finally, Cornerstone Advisory LLC purchased a new stake in Roblox during the fourth quarter valued at $34,000. Institutional investors own 68.00% of the company’s stock.

About Roblox (Get Rating)

Roblox Corporation develops and operates an online entertainment platform. The company 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 digital world; Roblox Education for learning experiences; and Roblox Cloud, which provides services and infrastructure that power the human co-experience platform.

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