Roblox (NYSE:RBLX) Shares Gap Down – What’s Next?

Roblox Co. (NYSE:RBLX)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $75.47, but opened at $60.14. Roblox shares last traded at $62.20, with a volume of 12,504,453 shares trading hands.

Wall Street Analysts Forecast Growth

RBLX has been the subject of a number of research analyst reports. The Goldman Sachs Group raised their price target on Roblox from $55.00 to $63.00 and gave the stock a “neutral” rating in a research note on Friday. Wedbush reissued an “outperform” rating and set a $83.00 target price on shares of Roblox in a research note on Friday. JPMorgan Chase & Co. raised their price target on shares of Roblox from $62.00 to $72.00 and gave the stock an “overweight” rating in a research note on Friday, January 10th. Wells Fargo & Company boosted their price objective on shares of Roblox from $58.00 to $76.00 and gave the company an “overweight” rating in a research report on Thursday, January 16th. Finally, BTIG Research raised their target price on shares of Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $64.19.

Roblox Stock Down 1.1 %

The business’s 50 day moving average is $62.47 and its 200 day moving average is $50.62. The company has a market capitalization of $40.34 billion, a price-to-earnings ratio of -45.80 and a beta of 1.46. The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.98 and a current ratio of 0.98.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.46) by $0.13. Roblox had a negative return on equity of 795.19% and a negative net margin of 25.97%. Sell-side analysts anticipate that Roblox Co. will post -1.4 earnings per share for the current year.

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 138,555 shares of the company’s stock in a transaction on Thursday, January 30th. The shares were sold at an average price of $71.62, for a total value of $9,923,309.10. Following the sale, the chief executive officer now directly owns 129,301 shares of the company’s stock, valued at approximately $9,260,537.62. This represents a 51.73 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mark Reinstra sold 24,000 shares of the stock in a transaction dated Wednesday, January 22nd. The stock was sold at an average price of $65.89, for a total value of $1,581,360.00. Following the sale, the insider now directly owns 281,161 shares in the company, valued at $18,525,698.29. This represents a 7.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,306,335 shares of company stock valued at $77,348,316 over the last quarter. 22.15% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently bought and sold shares of the stock. Versant Capital Management Inc boosted its holdings in Roblox by 83.9% during the fourth quarter. Versant Capital Management Inc now owns 524 shares of the company’s stock worth $30,000 after buying an additional 239 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in shares of Roblox during the 3rd quarter worth about $27,000. Frazier Financial Advisors LLC increased its stake in shares of Roblox by 20,800.0% in the 3rd quarter. Frazier Financial Advisors LLC now owns 627 shares of the company’s stock valued at $28,000 after purchasing an additional 624 shares in the last quarter. Parkside Financial Bank & Trust raised its holdings in Roblox by 44.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 747 shares of the company’s stock worth $43,000 after purchasing an additional 230 shares during the period. Finally, GAMMA Investing LLC raised its holdings in Roblox by 132.8% in the 3rd quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after purchasing an additional 530 shares during the period. Hedge funds and other institutional investors own 94.46% of the company’s stock.

About Roblox

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.