Wells Fargo & Company Lowers Roblox (NYSE:RBLX) Price Target to $78.00

Roblox (NYSE:RBLX) had its target price lowered by stock analysts at Wells Fargo & Company from $97.00 to $78.00 in a report issued on Monday, Marketbeat.com reports. The brokerage presently has an “overweight” rating on the stock. Wells Fargo & Company‘s target price indicates a potential upside of 35.62% from the stock’s current price.

Several other research analysts have also recently weighed in on the stock. Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a research report on Friday, March 27th. TD Cowen reaffirmed a “sell” rating on shares of Roblox in a research note on Tuesday, January 27th. BTIG Research reduced their price objective on Roblox from $141.00 to $122.00 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Wedbush reissued an “outperform” rating and set a $110.00 price objective on shares of Roblox in a report on Friday, February 6th. Finally, Morgan Stanley lowered their price objective on shares of Roblox from $155.00 to $140.00 and set an “overweight” rating for the company in a report on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Roblox presently has a consensus rating of “Moderate Buy” and a consensus target price of $116.76.

Roblox Price Performance

Roblox stock traded down $2.60 during midday trading on Monday, reaching $57.51. 2,362,682 shares of the stock were exchanged, compared to its average volume of 11,693,432. Roblox has a 52 week low of $50.10 and a 52 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. The firm has a market cap of $38.05 billion, a PE ratio of -37.06 and a beta of 1.67. The company’s fifty day moving average is $63.12 and its 200-day moving average is $89.41.

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

Insider Buying and Selling at Roblox

In other news, CEO David Baszucki sold 10,834 shares of the company’s stock in a transaction dated Friday, February 20th. The shares were sold at an average price of $61.63, for a total transaction of $667,699.42. Following the completion of the transaction, the chief executive officer directly owned 800,539 shares of the company’s stock, valued at approximately $49,337,218.57. This represents a 1.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Arvind Chakravarthy sold 40,646 shares of the stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $67.23, for a total transaction of $2,732,630.58. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 593,914 shares of company stock worth $42,261,697 over the last ninety days. 12.92% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Norges Bank bought a new position in shares of Roblox during the fourth quarter valued at approximately $435,424,000. Vanguard Group Inc. boosted its holdings in Roblox by 5.6% in the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after acquiring an additional 3,284,073 shares in the last quarter. SRS Investment Management LLC purchased a new position in shares of Roblox during the fourth quarter valued at about $238,065,000. Capital International Investors grew its stake in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock worth $2,589,282,000 after purchasing an additional 2,184,439 shares during the period. Finally, ValueAct Holdings L.P. increased its stake in shares of Roblox by 39.5% during the fourth quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company’s stock valued at $484,221,000 after purchasing an additional 1,692,600 shares in the last quarter. 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.