Roblox (NYSE:RBLX) Shares Climb 6.7% – What’s Next?

Roblox Corporation (NYSE:RBLX) was up 6.7% during trading on Friday. The company traded as high as $48.68 and last traded at $48.5860. Approximately 2,168,960 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 11,818,009 shares. The stock had previously closed at $45.52.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on RBLX. Deutsche Bank Aktiengesellschaft downgraded Roblox from a “buy” rating to a “hold” rating and lowered their price target for the company from $56.00 to $38.00 in a report on Friday, July 31st. Citigroup reduced their target price on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research note on Monday, August 3rd. B. Riley Financial decreased their price objective on Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, August 3rd. Moffett Nathanson restated a “neutral” rating and issued a $40.00 price target on shares of Roblox in a report on Monday, August 3rd. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Roblox in a research note on Monday, September 21st. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, thirteen have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $60.79.

Roblox Trading Up 7.2%

The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm’s 50 day moving average is $42.05 and its two-hundred day moving average is $47.93. The stock has a market cap of $32.68 billion, a price-to-earnings ratio of -34.11 and a beta of 1.47.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period last year, the firm earned ($0.41) EPS. Equities analysts anticipate that Roblox Corporation will post -1.39 EPS for the current year.

Insider Activity at Roblox

In other Roblox news, insider Matthew D. Kaufman sold 14,904 shares of the business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $565,755.84. Following the transaction, the insider owned 335,060 shares in the company, valued at $12,718,877.60. The trade was a 4.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $680,774.64. Following the completion of the transaction, the insider owned 398,064 shares in the company, valued at $15,110,509.44. This represents a 4.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 186,390 shares of company stock worth $7,283,371. Company insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently modified their holdings of the business. LifeGoal Investments LLC bought a new position in shares of Roblox in the 3rd quarter valued at approximately $222,000. Stableford Capital II LLC acquired a new stake in Roblox in the 3rd quarter valued at approximately $533,000. Farther Finance Advisors LLC lifted its holdings in shares of Roblox by 54.3% during the third quarter. Farther Finance Advisors LLC now owns 15,032 shares of the company’s stock worth $637,000 after buying an additional 5,291 shares during the last quarter. Apella Capital LLC acquired a new stake in shares of Roblox in the third quarter worth $234,000. Finally, Bangor Savings Bank bought a new stake in Roblox in the 3rd quarter valued at $818,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

About Roblox

Roblox Corporation (NYSE:RBLX) operates an online entertainment platform where users can create, share and experience interactive 3D content. The platform hosts user-generated games and other virtual experiences across genres, including entertainment, social activities, education and simulated environments.

Roblox provides development tools through Roblox Studio, enabling creators to build and publish experiences, digital items and other content. Users can customize avatars, interact with others and access the platform across supported computers, mobile devices, gaming consoles and virtual reality systems.