The Goldman Sachs Group Issues Pessimistic Forecast for Roblox (NYSE:RBLX) Stock Price

Roblox (NYSE:RBLX) had its price target dropped by research analysts at The Goldman Sachs Group from $140.00 to $125.00 in a note issued to investors on Wednesday. The firm presently has a “buy” rating on the stock. The Goldman Sachs Group’s target price points to a potential upside of 103.83% from the stock’s previous close.

Several other research analysts have also recently weighed in on the stock. Wells Fargo & Company dropped their price objective on shares of Roblox from $97.00 to $78.00 and set an “overweight” rating for the company in a research report on Monday, April 6th. Oppenheimer dropped their target price on shares of Roblox from $150.00 to $130.00 and set an “outperform” rating for the company in a research report on Friday, February 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Roblox in a research report on Friday, March 27th. Morgan Stanley dropped their target price on shares of Roblox from $155.00 to $140.00 and set an “overweight” rating for the company in a research report on Friday, February 6th. Finally, Freedom Capital upgraded shares of Roblox from a “hold” rating to a “strong-buy” rating in a research report on Friday, February 6th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Roblox presently has a consensus rating of “Moderate Buy” and an average target price of $116.16.

Roblox Stock Performance

RBLX stock opened at $61.33 on Wednesday. The company has a debt-to-equity ratio of 2.65, a current ratio of 0.96 and a quick ratio of 0.96. The company has a 50 day moving average price of $60.51 and a 200 day moving average price of $83.00. Roblox has a fifty-two week low of $51.23 and a fifty-two week high of $150.59. The stock has a market capitalization of $41.01 billion, a PE ratio of -39.57 and a beta of 1.67.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, topping the consensus estimate of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm had revenue of $1.42 billion during the quarter, compared to analysts’ expectations of $2.08 billion. During the same quarter in the previous year, the company posted ($0.33) EPS. Roblox’s revenue was up 122.6% on a year-over-year basis. Analysts forecast that Roblox will post -1.61 EPS for the current year.

Insider Activity at Roblox

In other news, Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total value of $965,794.70. Following the completion of the transaction, the director owned 1,302,834 shares of the company’s stock, valued at $75,499,230.30. The trade was a 1.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Arvind Chakravarthy sold 40,646 shares of the business’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total transaction of $2,732,630.58. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 551,996 shares of company stock worth $38,421,146. 12.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the company. Venturi Wealth Management LLC grew its holdings in shares of Roblox by 258.9% in the 1st quarter. Venturi Wealth Management LLC now owns 30,236 shares of the company’s stock valued at $1,710,000 after buying an additional 21,812 shares during the period. Pinnacle Wealth Management Advisory Group LLC acquired a new position in shares of Roblox in the 1st quarter valued at $343,000. Aaron Wealth Advisors LLC grew its holdings in shares of Roblox by 80.0% in the 1st quarter. Aaron Wealth Advisors LLC now owns 5,143 shares of the company’s stock valued at $291,000 after buying an additional 2,285 shares during the period. Kestra Private Wealth Services LLC grew its holdings in shares of Roblox by 17.1% in the 1st quarter. Kestra Private Wealth Services LLC now owns 11,568 shares of the company’s stock valued at $654,000 after buying an additional 1,693 shares during the period. Finally, OP Asset Management Ltd acquired a new position in shares of Roblox in the 1st quarter valued at $5,927,000. Institutional investors and hedge funds 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.