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

Roblox Co. (NYSE:RBLX) shares gapped up prior to trading 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 traded.

Analysts Set New Price Targets

A number of research firms recently weighed in on RBLX. The Goldman Sachs Group raised their price target on Roblox from $45.00 to $55.00 and gave the company a “neutral” rating in a report on Friday, November 1st. Deutsche Bank Aktiengesellschaft raised their price target on Roblox from $45.00 to $60.00 and gave the company a “buy” rating in a report on Monday, November 4th. Canaccord Genuity Group raised their price target on Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a report on Friday, November 1st. Raymond James reaffirmed a “strong-buy” rating and set a $60.00 price target on shares of Roblox in a report on Friday, November 22nd. Finally, JPMorgan Chase & Co. increased their price objective on Roblox from $62.00 to $72.00 and gave the company an “overweight” rating in a research report on Friday. Seven investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $56.14.

Roblox Trading Down 0.5 %

The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98. The business has a 50-day moving average of $55.74 and a 200-day moving average of $46.44. The firm has a market cap of $37.52 billion, a price-to-earnings ratio of -37.65 and a beta of 1.43.

Roblox (NYSE:RBLX) last released its earnings results 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. The business had revenue of $919.00 million for the quarter, compared to the consensus estimate of $1.02 billion. Roblox had a negative return on equity of 986.36% and a negative net margin of 30.90%. Roblox’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.45) earnings per share. Research analysts anticipate that Roblox Co. will post -1.56 EPS for the current year.

Insiders Place Their Bets

In other news, CEO David Baszucki sold 166,668 shares of the business’s stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $42.15, for a total transaction of $7,025,056.20. Following the completion of the sale, the chief executive officer now owns 135,755 shares in the company, valued at $5,722,073.25. The trade was a 55.11 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Manuel Bronstein sold 37,846 shares of the business’s stock in a transaction that occurred on Monday, November 4th. The stock was sold at an average price of $52.03, for a total value of $1,969,127.38. Following the sale, the insider now owns 674,259 shares of the company’s stock, valued at approximately $35,081,695.77. This represents a 5.31 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,254,601 shares of company stock valued at $65,622,735 over the last 90 days. 22.15% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Roblox

Institutional investors have recently made changes to their positions in the stock. Versant Capital Management Inc raised its position in Roblox by 83.9% during the fourth quarter. Versant Capital Management Inc now owns 524 shares of the company’s stock valued at $30,000 after purchasing an additional 239 shares in the last quarter. Impact Partnership Wealth LLC raised its position in Roblox by 3.8% during the third quarter. Impact Partnership Wealth LLC now owns 6,730 shares of the company’s stock valued at $298,000 after purchasing an additional 245 shares in the last quarter. GAMMA Investing LLC raised its position in Roblox by 29.2% during the fourth quarter. GAMMA Investing LLC now owns 1,200 shares of the company’s stock valued at $69,000 after purchasing an additional 271 shares in the last quarter. Metis Global Partners LLC raised its position in Roblox by 5.0% during the third quarter. Metis Global Partners LLC now owns 6,003 shares of the company’s stock valued at $266,000 after purchasing an additional 288 shares in the last quarter. Finally, Oppenheimer & Co. Inc. raised its position in Roblox by 5.0% during the third quarter. Oppenheimer & Co. Inc. now owns 6,691 shares of the company’s stock valued at $296,000 after purchasing an additional 321 shares in the last quarter. 94.46% of the stock is currently owned by institutional investors.

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.