Roblox (NYSE:RBLX) Price Target Cut to $47.50 by Analysts at DA Davidson

Roblox (NYSE:RBLX) had its price target decreased by analysts at DA Davidson from $65.00 to $47.50 in a report released on Friday,Benzinga reports. The brokerage currently has a “neutral” rating on the stock. DA Davidson’s target price points to a potential upside of 5.21% from the company’s current price.

Other equities research analysts also recently issued research reports about the company. The Goldman Sachs Group set a $65.00 target price on Roblox in a research report on Friday. Wedbush downgraded Roblox from a “hold” rating to a “neutral” rating in a research report on Friday. Jefferies Financial Group downgraded Roblox from a “hold” rating to a “hold” rating in a research report on Friday. JPMorgan Chase & Co. reduced their price target on Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a report on Friday, February 6th. Finally, Barclays reduced their price target on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $93.61.

Roblox Stock Down 18.3%

Shares of NYSE RBLX traded down $10.11 on Friday, hitting $45.15. The company had a trading volume of 53,271,696 shares, compared to its average volume of 11,689,348. Roblox has a 12-month low of $41.75 and a 12-month high of $150.59. The business has a 50 day moving average of $59.46 and a two-hundred day moving average of $80.23. The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 2.65. The firm has a market capitalization of $30.19 billion, a P/E ratio of -29.13 and a beta of 1.67.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping the consensus estimate of ($0.41) by $0.06. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter in the prior year, the business earned ($0.32) earnings per share. The company’s revenue was up 43.4% compared to the same quarter last year. As a group, equities research analysts forecast that Roblox will post -1.6 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In related news, insider Matthew D. Kaufman sold 30,034 shares of the stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $72.65, for a total value of $2,181,970.10. Following the completion of the transaction, the insider owned 307,263 shares of the company’s stock, valued at approximately $22,322,656.95. This represents a 8.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Gregory Baszucki sold 16,666 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the transaction, the director directly owned 1,302,834 shares in the company, valued at approximately $75,499,230.30. This represents a 1.26% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 551,996 shares of company stock valued at $38,421,146 in the last three months. 12.92% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. WPG Advisers LLC lifted its stake in Roblox by 17.8% in the 3rd quarter. WPG Advisers LLC now owns 555 shares of the company’s stock valued at $77,000 after acquiring an additional 84 shares in the last quarter. Baird Financial Group Inc. grew its stake in shares of Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock worth $767,000 after acquiring an additional 102 shares in the last quarter. Sunbelt Securities Inc. grew its stake in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock worth $39,000 after acquiring an additional 105 shares in the last quarter. Brown Brothers Harriman & Co. raised its holdings in shares of Roblox by 2.8% in the third quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after purchasing an additional 110 shares during the last quarter. Finally, QTR Family Wealth LLC raised its holdings in shares of Roblox by 2.6% in the third quarter. QTR Family Wealth LLC now owns 4,446 shares of the company’s stock valued at $616,000 after purchasing an additional 111 shares during the last quarter. Institutional investors own 94.46% of the company’s stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Needham initiated coverage with a Buy and $60 price target, highlighting upside versus the current level and providing a modest bullish counterpoint for investors looking for long-term conviction. Benzinga
• Neutral Sentiment: Roblox beat EPS estimates for the quarter (smaller-than-expected loss), and revenue grew year-over-year, giving some evidence that the core business still generates growth even as guidance weakens. Earnings / Slide Deck
• Negative Sentiment: Bank of America slashed its price target from $165 to $48 and downgraded RBLX to Neutral, the most aggressive analyst move today and a clear signal that Wall Street is re-rating the company on sustainability of growth after the safety-driven slowdown. BofA Article
• Negative Sentiment: Management cut full?year revenue/bookings guidance (FY revenue now guided materially below prior ranges) and issued Q2 guidance below Street estimates; the company blamed new child-safety and age?verification measures that have reduced communication, onboarding and monetization. This is the primary driver of the stock decline. Reuters
• Negative Sentiment: Multiple outlets report steep after?hours and intraday drops (market reaction amplified by heavy volume), and other shops (BTIG, others) downgraded or trimmed targets — creating near?term selling pressure and raising questions about user/booking recovery timing. CNBC
• Negative Sentiment: Analyst moves are mixed but skew negative: while TD Cowen moved to Hold, BTIG and others cut ratings or targets; BofA’s extreme PT cut is particularly notable because it implies materially lower expectations for long?term monetization on the platform. Analyst Coverage

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.