Roblox (NYSE:RBLX) Shares Gap Up – Time to Buy?

Roblox Co. (NYSE:RBLX) gapped up before the market opened on Wednesday . The stock had previously closed at $56.26, but opened at $58.41. Roblox shares last traded at $58.19, with a volume of 1,185,924 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on RBLX. Piper Sandler raised their target price on shares of Roblox from $54.00 to $65.00 and gave the company an “overweight” rating in a research note on Friday, November 1st. BMO Capital Markets restated an “outperform” rating and set a $62.00 price objective (up previously from $56.00) on shares of Roblox in a research report on Friday, November 1st. Morgan Stanley raised Roblox from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $38.00 to $65.00 in a research note on Monday, November 4th. BTIG Research increased their price objective on Roblox from $51.00 to $56.00 and gave the company a “buy” rating in a research report on Friday, November 1st. Finally, Raymond James restated a “strong-buy” rating and issued a $60.00 target price on shares of Roblox in a research report on Friday, November 22nd. Seven research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $55.67.

Roblox Stock Performance

The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.98 and a current ratio of 0.98. The firm’s 50-day moving average is $48.52 and its 200-day moving average is $42.97.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, October 31st. The company reported ($0.37) EPS for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.02. The firm had revenue of $919.00 million for the quarter, compared to analysts’ expectations of $1.02 billion. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. The company’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.45) EPS. As a group, equities analysts predict that Roblox Co. will post -1.56 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Michael Guthrie sold 30,000 shares of the company’s stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $41.50, for a total value of $1,245,000.00. Following the transaction, the chief financial officer now owns 352,844 shares in the company, valued at $14,643,026. The trade was a 7.84 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Amy Marie Rawlings sold 2,186 shares of the firm’s stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $52.90, for a total transaction of $115,639.40. Following the sale, the chief accounting officer now owns 91,062 shares of the company’s stock, valued at approximately $4,817,179.80. This represents a 2.34 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,412,379 shares of company stock worth $71,728,919 in the last 90 days. Insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of RBLX. Swedbank AB raised its holdings in shares of Roblox by 0.5% during the second quarter. Swedbank AB now owns 53,297 shares of the company’s stock valued at $1,983,000 after purchasing an additional 285 shares during the last quarter. Coronation Fund Managers Ltd. bought a new position in shares of Roblox during the 2nd quarter valued at $2,663,000. Blue Trust Inc. grew its holdings in shares of Roblox by 1,836.5% in the second quarter. Blue Trust Inc. now owns 3,931 shares of the company’s stock worth $150,000 after acquiring an additional 3,728 shares during the period. Sumitomo Mitsui Trust Holdings Inc. increased its position in Roblox by 17.6% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 9,984,817 shares of the company’s stock valued at $371,535,000 after acquiring an additional 1,491,726 shares during the last quarter. Finally, First Horizon Advisors Inc. boosted its position in Roblox by 44.9% in the second quarter. First Horizon Advisors Inc. now owns 2,593 shares of the company’s stock worth $96,000 after purchasing an additional 804 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.

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.