Roblox (NYSE:RBLX) Trading Down 6.9% – Here’s Why

Roblox Corporation (NYSE:RBLX)’s share price was down 6.9% during mid-day trading on Tuesday . The stock traded as low as $81.35 and last traded at $81.2160. Approximately 4,746,771 shares were traded during mid-day trading, a decline of 62% from the average daily volume of 12,469,323 shares. The stock had previously closed at $87.28.

Analysts Set New Price Targets

RBLX has been the topic of several research analyst reports. Macquarie lifted their price target on Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a research report on Tuesday, November 4th. Citigroup raised their target price on shares of Roblox from $152.00 to $155.00 and gave the stock a “buy” rating in a research report on Wednesday, October 8th. Raymond James Financial reaffirmed an “outperform” rating and issued a $165.00 target price (up from $155.00) on shares of Roblox in a report on Tuesday, October 14th. BMO Capital Markets upped their price target on shares of Roblox from $150.00 to $160.00 and gave the company an “outperform” rating in a research report on Thursday, October 2nd. Finally, Roth Capital restated a “neutral” rating and issued a $146.00 price objective on shares of Roblox in a research note on Friday, October 17th. Seventeen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Roblox currently has a consensus rating of “Hold” and an average target price of $132.96.

Roblox Trading Down 9.7%

The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.54. The business’s fifty day moving average is $88.53 and its 200 day moving average is $111.93. The stock has a market cap of $51.62 billion, a PE ratio of -55.13 and a beta of 1.64.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, October 30th. The company reported ($0.37) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.07. The firm had revenue of $1.36 billion during the quarter, compared to analysts’ expectations of $1.64 billion. Roblox had a negative return on equity of 314.20% and a negative net margin of 21.70%.Roblox’s revenue was up 70.3% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.37) earnings per share. As a group, analysts predict that Roblox Corporation will post -1.49 earnings per share for the current year.

Insider Transactions at Roblox

In other Roblox news, Director Anthony P. Lee sold 7,000 shares of the firm’s stock in a transaction dated Tuesday, January 13th. The shares were sold at an average price of $82.45, for a total transaction of $577,150.00. Following the completion of the transaction, the director directly owned 256,768 shares in the company, valued at approximately $21,170,521.60. This trade represents a 2.65% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mark Reinstra sold 16,782 shares of the company’s stock in a transaction dated Thursday, November 20th. The shares were sold at an average price of $95.24, for a total transaction of $1,598,317.68. Following the completion of the sale, the insider directly owned 370,532 shares in the company, valued at $35,289,467.68. This trade represents a 4.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 504,300 shares of company stock worth $46,290,436 in the last 90 days. Insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Pilgrim Partners Asia Pte Ltd purchased a new position in Roblox in the 3rd quarter valued at about $26,000. Total Investment Management Inc. purchased a new position in shares of Roblox during the second quarter valued at approximately $29,000. ORG Partners LLC purchased a new position in shares of Roblox during the second quarter valued at approximately $33,000. Whipplewood Advisors LLC acquired a new stake in Roblox during the second quarter worth approximately $34,000. Finally, Whittier Trust Co. of Nevada Inc. purchased a new stake in Roblox in the 3rd quarter worth approximately $37,000. 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.