UBS Group Lowers Roblox (NYSE:RBLX) Price Target to $49.00

Roblox (NYSE:RBLX) had its target price cut by equities researchers at UBS Group from $74.00 to $49.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. UBS Group’s price target would indicate a potential upside of 8.53% from the company’s previous close.

Several other research firms have also recently issued reports on RBLX. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Roblox in a research report on Friday, March 27th. Piper Sandler reaffirmed an “overweight” rating and issued a $100.00 price objective (down from $125.00) on shares of Roblox in a research report on Friday, February 6th. Freedom Capital upgraded shares of Roblox from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 6th. HSBC lowered shares of Roblox from a “buy” rating to a “hold” rating and set a $46.00 target price for the company. in a research note on Friday. Finally, Raymond James Financial lowered shares of Roblox from an “outperform” rating to a “market perform” rating in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Roblox presently has a consensus rating of “Hold” and an average price target of $92.69.

Roblox Stock Down 18.3%

Roblox stock traded down $10.11 during trading hours on Friday, hitting $45.15. 53,289,442 shares of the stock traded hands, compared to its average volume of 11,689,348. The firm’s 50-day moving average price is $59.46 and its two-hundred day moving average price is $80.23. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65. The company has a market cap of $30.19 billion, a PE ratio of -29.13 and a beta of 1.67. Roblox has a one year low of $41.75 and a one year high of $150.59.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The firm had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. During the same period in the previous year, the firm posted ($0.32) EPS. The business’s revenue for the quarter was up 43.4% compared to the same quarter last year. On average, research analysts forecast that Roblox will post -1.6 EPS for the current year.

Insider Buying and Selling at Roblox

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total transaction of $965,794.70. Following the completion of the transaction, the director owned 1,302,834 shares of the company’s stock, valued at $75,499,230.30. This represents a 1.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Arvind Chakravarthy sold 40,646 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 551,996 shares of company stock worth $38,421,146. Insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. National Pension Service raised its holdings in shares of Roblox by 7.3% during the third quarter. National Pension Service now owns 1,697,820 shares of the company’s stock worth $235,182,000 after purchasing an additional 115,096 shares during the period. SG Americas Securities LLC raised its holdings in shares of Roblox by 298.4% during the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company’s stock worth $45,617,000 after purchasing an additional 246,652 shares during the period. Yarbrough Capital LLC grew its position in shares of Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock worth $4,646,000 after acquiring an additional 53,780 shares during the last quarter. Cypress Wealth Services LLC bought a new position in shares of Roblox during the fourth quarter worth about $2,373,000. Finally, Tokio Marine Asset Management Co. Ltd. bought a new position in shares of Roblox during the third quarter worth about $2,895,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox News Roundup

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Needham initiated coverage with a Buy and $60 price target, highlighting upside versus the current level and providing a modest bullish counterpoint for investors looking for long-term conviction. Benzinga
• Neutral Sentiment: Roblox beat EPS estimates for the quarter (smaller-than-expected loss), and revenue grew year-over-year, giving some evidence that the core business still generates growth even as guidance weakens. Earnings / Slide Deck
• Negative Sentiment: Bank of America slashed its price target from $165 to $48 and downgraded RBLX to Neutral, the most aggressive analyst move today and a clear signal that Wall Street is re-rating the company on sustainability of growth after the safety-driven slowdown. BofA Article
• Negative Sentiment: Management cut full?year revenue/bookings guidance (FY revenue now guided materially below prior ranges) and issued Q2 guidance below Street estimates; the company blamed new child-safety and age?verification measures that have reduced communication, onboarding and monetization. This is the primary driver of the stock decline. Reuters
• Negative Sentiment: Multiple outlets report steep after?hours and intraday drops (market reaction amplified by heavy volume), and other shops (BTIG, others) downgraded or trimmed targets — creating near?term selling pressure and raising questions about user/booking recovery timing. CNBC
• Negative Sentiment: Analyst moves are mixed but skew negative: while TD Cowen moved to Hold, BTIG and others cut ratings or targets; BofA’s extreme PT cut is particularly notable because it implies materially lower expectations for long?term monetization on the platform. Analyst Coverage

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.