Roblox (NYSE:RBLX) Shares Gap Up – Here’s Why

Roblox Co. (NYSE:RBLX)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $56.26, but opened at $58.41. Roblox shares last traded at $58.19, with a volume of 1,185,924 shares.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on RBLX shares. BTIG Research raised their price objective on Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a report on Friday, November 1st. Wells Fargo & Company increased their price target on shares of Roblox from $54.00 to $58.00 and gave the stock an “overweight” rating in a research note on Friday, November 1st. Benchmark increased their target price on Roblox from $44.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Wedbush restated an “outperform” rating and set a $49.00 price target on shares of Roblox in a research note on Friday, October 25th. Finally, Macquarie lifted their target price on shares of Roblox from $50.00 to $58.00 and gave the company an “outperform” rating in a report on Friday, November 1st. Seven research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $55.30.

Roblox Stock Performance

The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.98 and a current ratio of 0.98. The company has a market capitalization of $36.99 billion, a price-to-earnings ratio of -36.51 and a beta of 1.50. The firm’s 50 day simple moving average is $47.84 and its 200-day simple moving average is $42.73.

Roblox (NYSE:RBLX) last posted 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 firm had revenue of $919.00 million during 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 company’s revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.45) earnings per share. Analysts expect that Roblox Co. will post -1.56 EPS for the current year.

Insider Buying and Selling at Roblox

In related news, CEO David Baszucki sold 333,334 shares of the firm’s stock in a transaction on Thursday, December 5th. The shares were sold at an average price of $57.31, for a total transaction of $19,103,371.54. Following the sale, the chief executive officer now directly owns 129,295 shares in the company, valued at $7,409,896.45. This trade represents a 72.05 % 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 Mark Reinstra sold 17,000 shares of the firm’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $45.58, for a total transaction of $774,860.00. Following the completion of the transaction, the insider now directly owns 327,009 shares of the company’s stock, valued at $14,905,070.22. This represents a 4.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 1,412,379 shares of company stock valued at $71,728,919. 22.15% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Roblox

Several hedge funds and other institutional investors have recently modified their holdings of RBLX. V Square Quantitative Management LLC bought a new stake in shares of Roblox during the third quarter worth $27,000. Frazier Financial Advisors LLC raised its position in Roblox by 20,800.0% in the third quarter. Frazier Financial Advisors LLC now owns 627 shares of the company’s stock valued at $28,000 after purchasing an additional 624 shares during the last quarter. PARK CIRCLE Co acquired a new stake in shares of Roblox during the second quarter valued at about $30,000. GAMMA Investing LLC grew its holdings in shares of Roblox by 132.8% during the third quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after purchasing an additional 530 shares during the last quarter. Finally, Gilliland Jeter Wealth Management LLC increased its stake in shares of Roblox by 102.4% in the second quarter. Gilliland Jeter Wealth Management LLC now owns 1,000 shares of the company’s stock valued at $37,000 after buying an additional 506 shares during the period. Institutional investors own 91.08% 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.