Moffett Nathanson Downgrades Roblox (NYSE:RBLX) to Sell

Moffett Nathanson cut shares of Roblox (NYSE:RBLX) from a neutral rating to a sell rating in a research note released on Friday, MarketBeat reports. The firm currently has $34.00 price target on the stock.

A number of other research analysts have also weighed in on RBLX. Raymond James reaffirmed a “strong-buy” rating and set a $60.00 target price on shares of Roblox in a report on Friday, November 22nd. Benchmark lifted their target price on shares of Roblox from $44.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Morgan Stanley upped their price target on shares of Roblox from $65.00 to $75.00 and gave the company an “overweight” rating in a research report on Monday, January 13th. Citigroup lifted their price objective on Roblox from $63.00 to $82.00 and gave the stock a “buy” rating in a report on Monday, February 3rd. Finally, Wells Fargo & Company increased their target price on Roblox from $58.00 to $76.00 and gave the company an “overweight” rating in a report on Thursday, January 16th. One investment analyst has rated the stock with a sell rating, six have given a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $64.19.

Roblox Price Performance

NYSE RBLX opened at $66.41 on Friday. The firm’s 50-day simple moving average is $62.47 and its two-hundred day simple moving average is $50.62. Roblox has a 52 week low of $29.55 and a 52 week high of $75.74. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, February 6th. The company reported ($0.33) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.46) by $0.13. Roblox had a negative net margin of 25.97% and a negative return on equity of 795.19%. Research analysts predict that Roblox will post -1.4 EPS for the current year.

Insiders Place Their Bets

In other Roblox news, CAO Amy Marie Rawlings sold 3,601 shares of Roblox stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $49.32, for a total value of $177,601.32. Following the completion of the transaction, the chief accounting officer now directly owns 81,407 shares of the company’s stock, valued at approximately $4,014,993.24. The trade was a 4.24 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Mark Reinstra sold 16,480 shares of the firm’s stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $51.43, for a total transaction of $847,566.40. Following the sale, the insider now directly owns 278,161 shares of the company’s stock, valued at $14,305,820.23. This trade represents a 5.59 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,306,335 shares of company stock worth $77,348,316. 22.15% of the stock is currently owned by company insiders.

Institutional Trading of Roblox

A number of institutional investors have recently made changes to their positions in RBLX. Sequoia Financial Advisors LLC purchased a new stake in Roblox during the 4th quarter valued at $250,000. Prosperity Wealth Management Inc. bought a new position in Roblox in the fourth quarter valued at about $371,000. Wealthfront Advisers LLC grew its stake in shares of Roblox by 74,400.8% during the 4th quarter. Wealthfront Advisers LLC now owns 17,335,594 shares of the company’s stock valued at $1,063,365,000 after purchasing an additional 17,312,325 shares during the period. Independent Advisor Alliance increased its position in shares of Roblox by 23.6% during the 4th quarter. Independent Advisor Alliance now owns 11,178 shares of the company’s stock valued at $647,000 after purchasing an additional 2,132 shares during the last quarter. Finally, Daiwa Securities Group Inc. boosted its holdings in shares of Roblox by 10.8% in the fourth quarter. Daiwa Securities Group Inc. now owns 61,192 shares of the company’s stock worth $3,541,000 after buying an additional 5,953 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.