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

Roblox (NYSE:RBLX) had its price objective lowered by Morgan Stanley from $170.00 to $155.00 in a report issued on Tuesday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley’s price objective points to a potential upside of 86.25% from the company’s previous close.

RBLX has been the topic of several other research reports. B. Riley started coverage on Roblox in a report on Tuesday, December 9th. They set a “buy” rating and a $125.00 price objective on the stock. Roth Capital restated a “neutral” rating and set a $146.00 price objective on shares of Roblox in a report on Friday, October 17th. Barclays lifted their price target on shares of Roblox from $120.00 to $130.00 and gave the stock an “equal weight” rating in a research report on Friday, October 31st. Citigroup raised their price objective on Roblox from $152.00 to $155.00 and gave the stock a “buy” rating in a research note on Wednesday, October 8th. Finally, JPMorgan Chase & Co. cut Roblox from an “overweight” rating to a “neutral” rating and decreased their target price for the company from $145.00 to $100.00 in a research note on Friday, December 12th. Eighteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Roblox presently has a consensus rating of “Moderate Buy” and an average target price of $134.23.

Roblox Stock Performance

Shares of RBLX traded up $6.50 on Tuesday, reaching $83.22. 10,849,188 shares of the stock traded hands, compared to its average volume of 11,014,859. The stock’s 50-day moving average price is $90.40 and its 200-day moving average price is $112.57. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. The firm has a market cap of $54.50 billion, a price-to-earnings ratio of -58.40 and a beta of 1.64. Roblox has a 12 month low of $50.10 and a 12 month high of $150.59.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, beating the consensus estimate of ($0.44) by $0.07. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The business had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.64 billion. During the same period in the previous year, the business earned ($0.37) EPS. The firm’s revenue was up 70.3% on a year-over-year basis. Equities analysts forecast that Roblox will post -1.49 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Arvind Chakravarthy sold 20,912 shares of the company’s stock in a transaction dated Thursday, November 20th. The stock was sold at an average price of $95.23, for a total transaction of $1,991,449.76. Following the sale, the insider owned 181,043 shares in the company, valued at approximately $17,240,724.89. This represents a 10.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Anthony P. Lee sold 66,000 shares of the business’s stock in a transaction on Tuesday, November 4th. The stock was sold at an average price of $104.07, for a total transaction of $6,868,620.00. Following the transaction, the director owned 266,008 shares in the company, valued at approximately $27,683,452.56. The trade was a 19.88% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 497,300 shares of company stock worth $45,713,286 over the last three months. Company insiders own 12.92% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. boosted its stake in shares of Roblox by 2.6% during the 2nd quarter. Vanguard Group Inc. now owns 59,153,925 shares of the company’s stock valued at $6,222,993,000 after purchasing an additional 1,513,608 shares in the last quarter. SG Americas Securities LLC lifted its holdings in Roblox by 298.4% in the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company’s stock worth $45,617,000 after buying an additional 246,652 shares during the period. Westfield Capital Management Co. LP bought a new stake in Roblox during the 2nd quarter valued at approximately $120,041,000. Teacher Retirement System of Texas boosted its position in Roblox by 14.5% during the 2nd quarter. Teacher Retirement System of Texas now owns 81,314 shares of the company’s stock valued at $8,554,000 after acquiring an additional 10,325 shares in the last quarter. Finally, Moody Lynn & Lieberson LLC purchased a new position in shares of Roblox during the 2nd quarter worth approximately $2,779,000. 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.