Roblox (NYSE:RBLX) Reaches New 12-Month High Following Better-Than-Expected Earnings

Roblox Co. (NYSE:RBLX)’s share price hit a new 52-week high on Thursday following a stronger than expected earnings report. The stock traded as high as $51.15 and last traded at $48.70, with a volume of 3573876 shares trading hands. The stock had previously closed at $43.14.

The company reported ($0.37) EPS for the quarter, topping analysts’ consensus estimates of ($0.38) by $0.01. Roblox had a negative net margin of 34.12% and a negative return on equity of 1,187.59%. The company had revenue of $919.00 million for the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter last year, the company earned ($0.45) EPS. The firm’s revenue was up 9.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on RBLX shares. Piper Sandler raised their price target on Roblox from $54.00 to $65.00 and gave the stock an “overweight” rating in a research report on Friday. Wolfe Research began coverage on shares of Roblox in a research note on Tuesday, July 16th. They issued a “peer perform” rating on the stock. Wells Fargo & Company upped their price target on shares of Roblox from $54.00 to $58.00 and gave the company an “overweight” rating in a report on Friday. Jefferies Financial Group started coverage on shares of Roblox in a report on Thursday, July 11th. They issued a “hold” rating and a $42.00 price target on the stock. Finally, Macquarie upped their price objective on shares of Roblox from $50.00 to $58.00 and gave the company an “outperform” rating in a research note on Friday. Eight equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Roblox currently has a consensus rating of “Moderate Buy” and a consensus target price of $52.55.

Insider Activity

In related news, CFO Michael Guthrie sold 30,000 shares of the stock in a transaction dated Wednesday, August 14th. The shares were sold at an average price of $38.82, for a total value of $1,164,600.00. Following the completion of the transaction, the chief financial officer now directly owns 374,633 shares in the company, valued at $14,543,253.06. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. In related news, Director Anthony P. Lee sold 200,000 shares of the company’s stock in a transaction that occurred on Thursday, October 31st. The stock was sold at an average price of $50.33, for a total value of $10,066,000.00. Following the sale, the director now owns 4,707,579 shares in the company, valued at $236,932,451.07. This represents a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CFO Michael Guthrie sold 30,000 shares of Roblox stock in a transaction on Wednesday, August 14th. The shares were sold at an average price of $38.82, for a total value of $1,164,600.00. Following the transaction, the chief financial officer now owns 374,633 shares of the company’s stock, valued at $14,543,253.06. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 979,341 shares of company stock worth $43,897,012. Corporate insiders own 22.15% of the company’s stock.

Hedge Funds Weigh In On Roblox

Institutional investors and hedge funds have recently modified their holdings of the stock. V Square Quantitative Management LLC bought a new position in Roblox in the 3rd quarter worth about $27,000. PARK CIRCLE Co bought a new position in shares of Roblox in the second quarter worth approximately $30,000. Strategic Financial Concepts LLC bought a new position in Roblox in the 2nd quarter valued at approximately $33,000. Gilliland Jeter Wealth Management LLC boosted its position in shares of Roblox by 102.4% during the second quarter. Gilliland Jeter Wealth Management LLC now owns 1,000 shares of the company’s stock valued at $37,000 after buying an additional 506 shares during the last quarter. Finally, Washington Trust Advisors Inc. purchased a new stake in shares of Roblox during the 1st quarter valued at about $39,000. 91.08% of the stock is currently owned by institutional investors.

Roblox Trading Down 0.5 %

The company has a debt-to-equity ratio of 9.04, a current ratio of 1.03 and a quick ratio of 1.03. The stock’s 50-day moving average is $43.67 and its two-hundred day moving average is $39.34. The company has a market cap of $30.79 billion, a P/E ratio of -29.91 and a beta of 1.60.

Roblox Company Profile

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.