Roblox (NYSE:RBLX) Rating Lowered to Neutral at Citigroup

Roblox (NYSE:RBLX) was downgraded by research analysts at Citigroup from a “buy” rating to a “neutral” rating in a report issued on Friday, MarketBeat Ratings reports. They presently have a $55.00 price target on the stock. Citigroup‘s price objective would indicate a potential upside of 10.16% from the stock’s previous close.

Several other research firms have also recently weighed in on RBLX. Benchmark cut shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price target for the company. in a report on Friday, July 31st. Moffett Nathanson restated a “neutral” rating and set a $40.00 price objective (down from $88.00) on shares of Roblox in a report on Monday, August 3rd. Bank of America boosted their price objective on shares of Roblox from $44.00 to $48.00 and gave the company a “neutral” rating in a research report on Monday, September 14th. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $55.00 target price on shares of Roblox in a research note on Friday, October 30th. Finally, Morgan Stanley reduced their target price on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, thirteen have given a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat, Roblox currently has a consensus rating of “Hold” and a consensus target price of $53.04.

Roblox Stock Down 2.9%

Shares of RBLX traded down $1.49 on Friday, hitting $49.93. The company’s stock had a trading volume of 5,338,539 shares, compared to its average volume of 9,970,259. The firm’s fifty day moving average price is $48.27 and its 200-day moving average price is $51.20. Roblox has a fifty-two week low of $33.88 and a fifty-two week high of $103.78. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 7.82. The firm has a market capitalization of $33.52 billion, a price-to-earnings ratio of -36.18 and a beta of 1.45.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, topping the consensus estimate of ($0.43) by $0.11. Roblox had a negative net margin of 16.48% and a negative return on equity of 417.56%. The firm had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.63 billion. During the same period last year, the company posted ($0.37) EPS. The business’s quarterly revenue was up 15.6% on a year-over-year basis. On average, equities research analysts expect that Roblox will post -1.36 EPS for the current year.

Insider Transactions at Roblox

In other Roblox news, CEO David Baszucki sold 52,568 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the completion of the transaction, the chief executive officer owned 799,646 shares of the company’s stock, valued at $30,354,562.16. This represents a 6.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen Chopra sold 17,509 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $664,641.64. Following the transaction, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 174,795 shares of company stock worth $6,921,031. Corporate insiders own 10.05% of the company’s stock.

Institutional Trading of Roblox

A number of institutional investors have recently made changes to their positions in RBLX. Headlands Technologies LLC bought a new position in Roblox in the third quarter valued at $306,000. Empowered Funds LLC increased its stake in Roblox by 3.5% in the 3rd quarter. Empowered Funds LLC now owns 50,264 shares of the company’s stock valued at $2,130,000 after buying an additional 1,699 shares during the last quarter. Kovack Advisors Inc. acquired a new stake in Roblox in the 3rd quarter valued at $34,000. Healthcare of Ontario Pension Plan Trust Fund increased its stake in Roblox by 382.3% in the 3rd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 1,544,900 shares of the company’s stock valued at $65,457,000 after buying an additional 1,224,600 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC increased its stake in Roblox by 7.9% in the 3rd quarter. Steward Partners Investment Advisory LLC now owns 44,283 shares of the company’s stock valued at $1,876,000 after buying an additional 3,244 shares during the last quarter. Institutional investors own 94.46% of the company’s stock.

Roblox News Roundup

Here’s some of the latest news about RBLX:

• Positive Sentiment: Roblox trades at about 4.9 times sales, below its five-year average, which may appeal to investors who believe the platform’s growth prospects remain intact. Is Citi Wrong to Give Up on Roblox? It Trades at 4.9x Sales, Below Its 5-Year Average
• Neutral Sentiment: Citi cut its rating from Buy to Neutral but set a $55 price target, above the cited $49.93 share price. The target suggests potential upside, though the rating change signals a more cautious view. Roblox edges lower as Citi downgrades stock to neutral on growth risks
• Negative Sentiment: Citi’s downgrade reflects concerns about Roblox’s growth outlook. A recent analysis also highlighted bookings down 12% despite revenue rising 16%, reinforcing investor attention to demand and growth quality. Citi just downgraded Roblox stock. Here’s why. Bookings down 12%, revenue up 16%—A CPA dissects Roblox

Roblox Company Profile

Roblox Corporation operates an online platform where users can create, share and play interactive 3D experiences. The company provides Roblox Studio, a set of tools that creators use to build games and other virtual spaces, as well as services for users to connect and communicate within those experiences. Roblox supports a creator economy through Robux, its virtual currency, which users can use for digital items and purchases in experiences. Eligible creators can earn revenue from their work through purchases and other platform programs.