Roblox (NYSE:RBLX) Sets New 12-Month Low – Here’s What Happened

Roblox Corporation (NYSE:RBLX)’s stock price reached a new 52-week low on Thursday . The company traded as low as $40.15 and last traded at $42.0020, with a volume of 10768712 shares traded. The stock had previously closed at $41.54.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. DA Davidson lowered their price objective on shares of Roblox from $65.00 to $47.50 and set a “neutral” rating on the stock in a research note on Friday, May 1st. Piper Sandler cut shares of Roblox from an “overweight” rating to a “neutral” rating and lowered their price objective for the company from $100.00 to $50.00 in a research note on Monday, May 4th. Freedom Capital raised shares of Roblox from a “hold” rating to a “strong-buy” rating in a research note on Friday, February 6th. HSBC cut shares of Roblox from a “buy” rating to a “hold” rating and set a $46.00 price objective on the stock. in a research note on Friday, May 1st. Finally, Citigroup lowered their price objective on shares of Roblox from $90.00 to $70.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Roblox has an average rating of “Hold” and an average target price of $87.17.

Roblox Stock Performance

The company has a market capitalization of $28.21 billion, a PE ratio of -26.58 and a beta of 1.50. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89. The stock’s fifty day simple moving average is $56.11 and its 200-day simple moving average is $75.06.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm’s quarterly revenue was up 43.4% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.32) EPS. As a group, equities analysts predict that Roblox Corporation will post -1.4 earnings per share for the current year.

Insider Activity

In other Roblox news, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total value of $749,470.02. Following the transaction, the director directly owned 1,294,501 shares in the company, valued at approximately $58,213,709.97. This represents a 1.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 10,834 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $61.63, for a total transaction of $667,699.42. Following the completion of the transaction, the chief executive officer owned 800,539 shares in the company, valued at approximately $49,337,218.57. This trade represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 136,144 shares of company stock valued at $8,072,169 in the last 90 days. Company insiders own 12.92% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. National Pension Service lifted its position in Roblox by 7.3% during the third quarter. National Pension Service now owns 1,697,820 shares of the company’s stock valued at $235,182,000 after buying an additional 115,096 shares in the last quarter. Cypress Wealth Services LLC acquired a new position in Roblox during the fourth quarter valued at approximately $2,373,000. Yarbrough Capital LLC lifted its position in Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock valued at $4,646,000 after buying an additional 53,780 shares in the last quarter. Triglav Investments D.O.O. purchased a new stake in shares of Roblox during the third quarter valued at approximately $3,186,000. Finally, Mirae Asset Global Investments Co. Ltd. raised its stake in shares of Roblox by 28.3% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 76,590 shares of the company’s stock valued at $10,609,000 after purchasing an additional 16,915 shares during the period. 94.46% of the stock is currently owned by hedge funds and other institutional 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.