Barclays Issues Pessimistic Forecast for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its price objective lowered by analysts at Barclays from $60.00 to $47.00 in a research note issued on Monday,Benzinga reports. The brokerage currently has an “equal weight” rating on the stock. Barclays‘s price objective indicates a potential upside of 29.62% from the stock’s current price.

Other research analysts have also issued research reports about the company. Deutsche Bank Aktiengesellschaft lowered Roblox from a “buy” rating to a “hold” rating and lowered their price objective for the company from $56.00 to $38.00 in a report on Friday. Wedbush cut Roblox from an “outperform” rating to a “neutral” rating and decreased their target price for the stock from $65.00 to $40.00 in a research report on Friday. Jefferies Financial Group lowered shares of Roblox from a “hold” rating to a “hold” rating in a research report on Friday, May 1st. Benchmark cut shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price objective for the company. in a research note on Friday. Finally, Wells Fargo & Company set a $46.00 price objective on shares of Roblox in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $66.19.

Roblox Stock Up 1.9%

Shares of Roblox stock traded up $0.66 during midday trading on Monday, reaching $36.26. 6,913,257 shares of the company’s stock traded hands, compared to its average volume of 11,640,760. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. Roblox has a 52 week low of $33.88 and a 52 week high of $142.00. The company’s 50 day simple moving average is $49.28 and its 200 day simple moving average is $56.79. The company has a market cap of $24.35 billion, a price-to-earnings ratio of -25.36 and a beta of 1.41.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping 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 firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. During the same period in the prior year, the business posted ($0.41) earnings per share. The business’s quarterly revenue was up 8.3% on a year-over-year basis. Equities analysts expect that Roblox will post -1.4 earnings per share for the current fiscal year.

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

Insider Transactions at Roblox

In other 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 sale, the insider directly owned 438,198 shares in the company, valued at approximately $19,841,605.44. The trade was a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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 business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were 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 ownership of the stock. 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 have sold 161,983 shares of company stock worth $7,580,990. 10.05% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently bought and sold shares of the business. Sunbelt Securities Inc. lifted its holdings in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after acquiring an additional 105 shares during the period. Horizon Investments LLC increased its stake in Roblox by 2,636.4% in the third quarter. Horizon Investments LLC now owns 301 shares of the company’s stock valued at $42,000 after acquiring an additional 290 shares during the period. Reyes Financial Architecture Inc. raised its position in Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares in the last quarter. Fideuram Asset Management Ireland dac bought a new position in Roblox during the fourth quarter worth about $27,000. Finally, GW&K Investment Management LLC lifted its stake in Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock worth $30,000 after purchasing an additional 161 shares during the period. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: A Zacks analysis is examining Roblox’s dependence on international revenue, highlighting its importance to financial stability and future growth while leaving the ultimate stock impact dependent on execution and regional performance. International Markets and Roblox: A Deep Dive for 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.