Roblox (NYSE:RBLX) Shares Climb 6.7% - Should You Buy?

Key Points

• Roblox shares rose 6.7% to about $48.59 in mid-day trading, though volume was 82% below the stock’s average daily volume.
• Analyst sentiment is mixed: the consensus rating is Hold with an average price target of $60.79, while recent targets range from $55 to $60 and include both upgrades and downgrades.
• Roblox beat quarterly EPS expectations but missed revenue estimates, reporting a $0.26 per-share loss and $1.47 billion in revenue. The company remains unprofitable, with a negative net margin and analysts projecting a $1.39 full-year EPS loss.

Shares of Roblox Corporation (NYSE:RBLX - Get Free Report) traded up 6.7% during mid-day trading on Friday. The stock traded as high as $48.68 and last traded at $48.5860. 2,168,960 shares were traded during 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

Several research analysts recently issued reports on RBLX shares. Morgan Stanley lowered their target price on Roblox from $62.00 to $55.00 and set an "overweight" rating for the company in a research report on Friday, July 31st. Needham & Company LLC increased their price target on Roblox from $50.00 to $55.00 and gave the stock a "buy" rating in a report on Wednesday, September 23rd. Roth Capital increased their price objective on shares of Roblox from $55.00 to $60.00 and gave the stock a "buy" rating in a research report on Tuesday, September 15th. Wolfe Research downgraded shares of Roblox from an "outperform" rating to a "hold" rating in a research report on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Roblox in a research report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $60.79.

Roblox Stock Performance

The company's fifty day simple moving average is $42.05 and its 200 day simple moving average is $47.93. The firm has a market capitalization of $32.68 billion, a PE ratio of -34.11 and a beta of 1.47. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping analysts' consensus estimates of ($0.34) by $0.08. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period in the prior year, the company earned ($0.41) EPS. The company's quarterly revenue was up 8.3% compared to the same quarter last year. As a group, equities research analysts expect that Roblox Corporation will post -1.39 EPS for the current fiscal year.

Insider Buying and Selling at Roblox

In related news, insider Matthew D. Kaufman sold 14,904 shares of the business's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $565,755.84. Following the completion of the transaction, the insider directly owned 335,060 shares in the company, valued at $12,718,877.60. The trade was a 4.26% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Naveen K. Chopra sold 17,509 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $664,641.64. Following the completion of the transaction, the chief financial officer directly owned 363,249 shares in the company, valued at approximately $13,788,932.04. The trade was a 4.60% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 186,390 shares of company stock worth $7,283,371 over the last quarter. Company insiders own 10.05% of the company's stock.

Hedge Funds Weigh In On Roblox

Several large investors have recently modified their holdings of the stock. Amundi grew its holdings in Roblox by 83.7% in the first quarter. Amundi now owns 5,774,151 shares of the company's stock worth $326,586,000 after purchasing an additional 2,631,074 shares during the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Roblox by 89.0% in the 2nd quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company's stock valued at $102,984,000 after acquiring an additional 891,634 shares during the last quarter. Spyglass Capital Management LLC purchased a new position in shares of Roblox during the 1st quarter valued at about $44,116,000. Allspring Global Investments Holdings LLC boosted its position in Roblox by 379.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company's stock worth $53,102,000 after purchasing an additional 729,379 shares in the last quarter. Finally, Sei Investments Co. lifted its position in shares of Roblox by 192.7% during the 1st quarter. Sei Investments Co. now owns 1,080,310 shares of the company's stock valued at $61,102,000 after buying an additional 711,259 shares in the last quarter. Institutional investors own 94.46% of the company's stock.

Roblox Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.