Roblox (NYSE:RBLX) Shares Gap Up – Should You Buy?

Roblox Co. (NYSE:RBLX)’s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $61.30, but opened at $62.83. Roblox shares last traded at $63.02, with a volume of 1,841,592 shares.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on RBLX shares. BTIG Research upped their price target on shares of Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a report on Friday, November 1st. Wedbush reiterated an “outperform” rating and set a $49.00 price target on shares of Roblox in a report on Friday, October 25th. Citigroup upped their price target on shares of Roblox from $53.00 to $63.00 and gave the stock a “buy” rating in a report on Tuesday, November 5th. Deutsche Bank Aktiengesellschaft upped their price target on shares of Roblox from $45.00 to $60.00 and gave the stock a “buy” rating in a report on Monday, November 4th. Finally, Needham & Company LLC increased their price objective on Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a report on Friday, November 1st. Seven analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $56.14.

Roblox Stock Down 0.5 %

The company has a market cap of $37.52 billion, a P/E ratio of -37.65 and a beta of 1.43. The stock’s 50-day moving average price is $55.74 and its 200-day moving average price is $46.44. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 5.64.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.39) by $0.02. The company 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 business’s revenue was up 9.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.45) EPS. As a group, research analysts forecast that Roblox Co. will post -1.56 EPS for the current year.

Insider Transactions at Roblox

In related news, insider Manuel Bronstein sold 37,846 shares of the firm’s stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $52.03, for a total value of $1,969,127.38. Following the transaction, the insider now owns 674,259 shares of the company’s stock, valued at approximately $35,081,695.77. This trade represents a 5.31 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Michael Guthrie sold 10,000 shares of the firm’s stock in a transaction dated Thursday, October 31st. The shares were sold at an average price of $49.44, for a total transaction of $494,400.00. Following the completion of the transaction, the chief financial officer now directly owns 352,844 shares in the company, valued at approximately $17,444,607.36. The trade was a 2.76 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 1,254,601 shares of company stock valued at $65,622,735 in the last 90 days. 22.15% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Toronto Dominion Bank increased its stake in Roblox by 34.3% in the 3rd quarter. Toronto Dominion Bank now owns 60,092 shares of the company’s stock valued at $2,660,000 after buying an additional 15,333 shares during the last quarter. Entropy Technologies LP increased its stake in Roblox by 168.4% in the 3rd quarter. Entropy Technologies LP now owns 99,649 shares of the company’s stock valued at $4,410,000 after buying an additional 62,521 shares during the last quarter. Dragoneer Investment Group LLC increased its stake in Roblox by 26.9% in the 2nd quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock valued at $437,039,000 after buying an additional 2,488,044 shares during the last quarter. Benjamin Edwards Inc. increased its stake in Roblox by 12,971.4% in the 3rd quarter. Benjamin Edwards Inc. now owns 52,024 shares of the company’s stock valued at $2,302,000 after buying an additional 51,626 shares during the last quarter. Finally, State Street Corp increased its stake in shares of Roblox by 2.3% during the 3rd quarter. State Street Corp now owns 10,855,890 shares of the company’s stock worth $480,482,000 after purchasing an additional 240,565 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.