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

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

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. DA Davidson cut their target price on shares of Roblox from $65.00 to $47.50 and set a “neutral” rating on the stock in a report on Friday, May 1st. Deutsche Bank Aktiengesellschaft set a $115.00 price target on shares of Roblox in a research report on Tuesday, January 20th. Wedbush downgraded shares of Roblox from a “hold” rating to a “neutral” rating in a research report on Friday, May 1st. BMO Capital Markets reiterated an “outperform” rating on shares of Roblox in a research report on Friday, February 6th. Finally, Citigroup reduced their price target on shares of Roblox from $90.00 to $70.00 and set a “buy” rating for the company in a research report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $87.17.

Roblox Stock Up 1.1%

The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a market capitalization of $28.21 billion, a price-to-earnings ratio of -26.58 and a beta of 1.50. The firm’s 50 day simple moving average is $56.11 and its 200-day simple moving average is $75.06.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. Roblox’s revenue was up 43.4% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.32) EPS. On average, sell-side analysts anticipate that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Insider Activity

In other news, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total transaction of $749,470.02. Following the transaction, the director directly owned 1,294,501 shares of the company’s stock, valued at $58,213,709.97. This represents a 1.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 on Friday, February 20th. The stock was sold at an average price of $61.63, for a total transaction of $667,699.42. Following the transaction, the chief executive officer directly 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 SEC filing for this sale provides additional information. Over the last quarter, insiders sold 136,144 shares of company stock valued at $8,072,169. 12.92% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Roblox

A number of institutional investors and hedge funds have recently made changes to their positions in RBLX. Reyes Financial Architecture Inc. grew its stake in shares of Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares during the period. Hanson & Doremus Investment Management acquired a new position in shares of Roblox during the 1st quarter worth $25,000. Pilgrim Partners Asia Pte Ltd acquired a new position in shares of Roblox during the 3rd quarter worth $26,000. Fideuram Asset Management Ireland dac acquired a new position in shares of Roblox during the 4th quarter worth $27,000. Finally, GW&K Investment Management LLC grew its stake in shares of Roblox by 76.3% during the 4th 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. 94.46% of the stock is owned by institutional investors and hedge funds.

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.