Roblox (NYSE:RBLX) Shares Gap Down – What’s Next?

Roblox Corporation (NYSE:RBLX)’s stock price gapped down prior to trading on Monday. The stock had previously closed at $46.44, but opened at $43.60. Roblox shares last traded at $42.6360, with a volume of 1,766,062 shares trading hands.

Analysts Set New Price Targets

RBLX has been the subject of several research analyst reports. Benchmark cut Roblox from a “hold” rating to a “sell” rating and set a $33.00 price objective for the company. in a research report on Friday, July 31st. Seaport Research Partners lowered Roblox to a “neutral” rating in a report on Monday, June 29th. Wolfe Research downgraded Roblox from an “outperform” rating to a “hold” rating in a research report on Friday, July 31st. Moffett Nathanson reiterated a “neutral” rating and set a $40.00 price target on shares of Roblox in a report on Monday, August 3rd. Finally, TD Cowen reduced their price objective on Roblox from $49.00 to $40.00 and set a “hold” rating for the company in a research report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, thirteen have issued a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Roblox presently has a consensus rating of “Hold” and a consensus target price of $60.79.

Roblox Stock Down 6.2%

The business’s fifty day moving average price is $43.10 and its 200 day moving average price is $48.83. The company has a market capitalization of $29.18 billion, a P/E ratio of -30.45 and a beta of 1.47. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same quarter in the previous year, the firm posted ($0.41) earnings per share. The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. As a group, equities research analysts predict that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Insider Activity at Roblox

In other news, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $40.47, for a total value of $674,473.02. Following the sale, the director directly owned 1,261,169 shares in the company, valued at approximately $51,039,509.43. This represents a 1.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Sean Buckley sold 4,321 shares of the stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $38.68, for a total value of $167,136.28. Following the completion of the transaction, the insider directly owned 87,213 shares of the company’s stock, valued at approximately $3,373,398.84. The trade was a 4.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 185,236 shares of company stock valued at $7,538,642. Corporate insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RBLX. Hanson & Doremus Investment Management bought a new stake in shares of Roblox in the 1st quarter worth about $25,000. Fideuram Asset Management Ireland dac bought a new position in Roblox during the 4th quarter valued at about $27,000. Basecamp Wealth Advisors LLC lifted its holdings in Roblox by 98.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after purchasing an additional 252 shares during the last quarter. Root Financial Partners LLC lifted its holdings in Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock valued at $32,000 after purchasing an additional 283 shares during the last quarter. Finally, Western Wealth Management LLC acquired a new position in Roblox in the first quarter valued at about $33,000. 94.46% of the stock is currently owned by institutional investors and hedge funds.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.