Roblox (NYSE:RBLX) Trading Down 5.9% – Here’s Why

Roblox Co. (NYSE:RBLX) fell 5.9% during trading on Monday . The company traded as low as $55.61 and last traded at $55.82. 3,137,230 shares traded hands during trading, a decline of 59% from the average session volume of 7,636,430 shares. The stock had previously closed at $59.31.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Piper Sandler upped their target price on Roblox from $54.00 to $65.00 and gave the company an “overweight” rating in a report on Friday, November 1st. Barclays upped their price objective on shares of Roblox from $40.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday, November 1st. Morgan Stanley raised shares of Roblox from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $38.00 to $65.00 in a research report on Monday, November 4th. Canaccord Genuity Group lifted their price objective on Roblox from $50.00 to $60.00 and gave the stock a “buy” rating in a research note on Friday, November 1st. Finally, Benchmark raised their target price on Roblox from $44.00 to $60.00 and gave the company a “buy” rating in a report on Friday, November 1st. Seven investment analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $55.30.

Roblox Stock Performance

The firm has a market cap of $34.61 billion, a PE ratio of -36.16 and a beta of 1.50. The company has a 50-day simple moving average of $47.34 and a two-hundred day simple moving average of $42.39. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64.

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

Insider Transactions at Roblox

In other Roblox news, insider Manuel Bronstein sold 15,380 shares of the firm’s stock in a transaction on Wednesday, September 11th. The stock was sold at an average price of $45.00, for a total transaction of $692,100.00. Following the transaction, the insider now directly owns 712,105 shares in the company, valued at $32,044,725. This trade represents a 2.11 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Anthony P. Lee sold 200,000 shares of the firm’s stock in a transaction on Thursday, October 31st. The stock was sold at an average price of $50.33, for a total transaction of $10,066,000.00. Following the completion of the transaction, the director now directly owns 4,707,579 shares of the company’s stock, valued at approximately $236,932,451.07. This represents a 4.08 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 997,868 shares of company stock valued at $47,880,617 over the last 90 days. Company insiders own 22.15% of the company’s stock.

Institutional Investors Weigh In On Roblox

A number of hedge funds have recently bought and sold shares of the stock. V Square Quantitative Management LLC acquired a new stake in shares of Roblox in the third quarter valued at approximately $27,000. Frazier Financial Advisors LLC raised its position 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 worth $28,000 after buying an additional 624 shares during the period. PARK CIRCLE Co acquired a new position in Roblox in the second quarter valued at $30,000. GAMMA Investing LLC increased its stake in Roblox by 132.8% during the third quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after acquiring an additional 530 shares during the last quarter. Finally, Gilliland Jeter Wealth Management LLC raised its holdings in shares of Roblox by 102.4% in the 2nd quarter. Gilliland Jeter Wealth Management LLC now owns 1,000 shares of the company’s stock worth $37,000 after purchasing an additional 506 shares during the period. Institutional investors and hedge funds 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.