Citigroup Has Lowered Expectations for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its price target reduced by equities research analysts at Citigroup from $105.00 to $90.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Citigroup’s price target indicates a potential upside of 58.89% from the company’s previous close.

RBLX has been the subject of a number of other reports. Needham & Company LLC decreased their price target on Roblox from $159.00 to $105.00 and set a “buy” rating for the company in a report on Friday, February 6th. Wolfe Research set a $100.00 price objective on shares of Roblox in a research note on Monday, January 5th. B. Riley Financial started coverage on shares of Roblox in a report on Tuesday, December 9th. They set a “buy” rating and a $125.00 target price for the company. Wells Fargo & Company set a $97.00 price target on shares of Roblox in a report on Monday, February 9th. Finally, Oppenheimer dropped their price target on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating on the stock in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Roblox has an average rating of “Moderate Buy” and a consensus target price of $118.28.

Roblox Stock Performance

NYSE RBLX opened at $56.64 on Monday. The stock has a 50-day simple moving average of $64.05 and a two-hundred day simple moving average of $91.04. The firm has a market capitalization of $37.48 billion, a P/E ratio of -36.54 and a beta of 1.62. Roblox has a fifty-two week low of $50.10 and a fifty-two week high of $150.59. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, topping analysts’ consensus estimates of ($0.49) by $0.04. The firm had revenue of $1.42 billion for the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company’s revenue was up 122.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.33) earnings per share. On average, equities analysts forecast that Roblox will post -1.49 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO David Baszucki sold 10,834 shares of the stock in a transaction that occurred 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 owned 800,539 shares in the company, valued at $49,337,218.57. This trade represents a 1.34% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Mark Reinstra sold 60,000 shares of Roblox stock in a transaction on Friday, February 13th. The shares were sold at an average price of $63.94, for a total transaction of $3,836,400.00. Following the completion of the sale, the insider directly owned 394,322 shares in the company, valued at $25,212,948.68. This represents a 13.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 636,248 shares of company stock valued at $46,013,542 in the last 90 days. Corporate insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Hsbc Holdings PLC raised its position in Roblox by 127.7% during the fourth quarter. Hsbc Holdings PLC now owns 625,234 shares of the company’s stock worth $50,786,000 after acquiring an additional 350,686 shares during the period. Caitong International Asset Management Co. Ltd grew its position in shares of Roblox by 97,100.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 972 shares of the company’s stock valued at $79,000 after purchasing an additional 971 shares during the period. Reflection Asset Management purchased a new stake in shares of Roblox during the fourth quarter worth about $60,000. Wick Capital Partners LLC purchased a new stake in shares of Roblox during the fourth quarter worth about $483,000. Finally, MidFirst Bank acquired a new position in shares of Roblox during the 4th quarter worth about $250,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

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.