Roblox (NYSE:RBLX) Shares Gap Up – Still a Buy?

Roblox Co. (NYSE:RBLX) shares gapped up before the market opened on Tuesday . The stock had previously closed at $58.29, but opened at $62.23. Roblox shares last traded at $58.83, with a volume of 3,314,647 shares.

Analysts Set New Price Targets

RBLX has been the subject of several recent research reports. FBN Securities assumed coverage on Roblox in a research report on Friday. They set a “sector perform” rating and a $65.00 price target for the company. Morgan Stanley upped their price objective on shares of Roblox from $65.00 to $75.00 and gave the company an “overweight” rating in a research note on Monday, January 13th. HSBC started coverage on Roblox in a report on Thursday, December 12th. They issued a “buy” rating and a $63.00 price target for the company. Moffett Nathanson downgraded Roblox from a “neutral” rating to a “sell” rating and set a $34.00 price objective for the company. in a research report on Friday, February 7th. Finally, Benchmark restated a “buy” rating and issued a $71.00 price target on shares of Roblox in a report on Tuesday, March 18th. One analyst has rated the stock with a sell rating, seven have given a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $64.23.

Roblox Stock Performance

The company has a debt-to-equity ratio of 4.82, a current ratio of 1.02 and a quick ratio of 0.98. The stock has a fifty day moving average price of $63.07 and a two-hundred day moving average price of $55.65. The company has a market cap of $37.24 billion, a P/E ratio of -41.43 and a beta of 1.49.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.46) by $0.13. Roblox had a negative return on equity of 665.98% and a negative net margin of 25.97%. On average, equities analysts forecast that Roblox Co. will post -1.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO David Baszucki sold 34,099 shares of the firm’s stock in a transaction that occurred on Monday, March 17th. The shares were sold at an average price of $57.05, for a total transaction of $1,945,347.95. Following the completion of the sale, the chief executive officer now directly owns 221,983 shares in the company, valued at approximately $12,664,130.15. This trade represents a 13.32 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Anthony P. Lee sold 250,000 shares of the company’s stock in a transaction on Thursday, January 16th. The shares were sold at an average price of $65.04, for a total value of $16,260,000.00. Following the completion of the transaction, the director now directly owns 6,254,137 shares in the company, valued at $406,769,070.48. This represents a 3.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 926,466 shares of company stock valued at $60,212,297 over the last quarter. Corporate insiders own 22.15% of the company’s stock.

Hedge Funds Weigh In On Roblox

A number of institutional investors have recently bought and sold shares of RBLX. FMR LLC boosted its holdings in shares of Roblox by 89.4% in the fourth quarter. FMR LLC now owns 39,658,528 shares of the company’s stock worth $2,294,642,000 after buying an additional 18,715,837 shares during the period. Wealthfront Advisers LLC boosted its stake in Roblox by 74,400.8% in the 4th quarter. Wealthfront Advisers LLC now owns 17,335,594 shares of the company’s stock worth $1,063,365,000 after purchasing an additional 17,312,325 shares during the period. ValueAct Holdings L.P. boosted its stake in Roblox by 340.7% in the 3rd quarter. ValueAct Holdings L.P. now owns 10,135,921 shares of the company’s stock worth $448,616,000 after purchasing an additional 7,835,921 shares during the period. Arrowstreet Capital Limited Partnership grew its position in Roblox by 1,084.2% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 4,813,347 shares of the company’s stock worth $278,500,000 after purchasing an additional 4,406,885 shares in the last quarter. Finally, Durable Capital Partners LP purchased a new stake in shares of Roblox in the fourth quarter valued at $246,560,000. 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.