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

Key Points

• Roblox shares jumped from a $47.82 prior close to a $50.90 open, with the stock last trading near $50.23.
• Analyst sentiment is mixed: the consensus rating is “Hold” with a $60.61 price target, although several firms maintain Buy or Outperform ratings.
• Roblox beat quarterly EPS expectations but missed revenue estimates; revenue rose 8.3% year over year, while the company remained unprofitable with a projected full-year loss.

Roblox Corporation (NYSE:RBLX - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $47.82, but opened at $50.90. Roblox shares last traded at $50.2310, with a volume of 1,138,611 shares.

Wall Street Analyst Weigh In

Several analysts have issued reports on RBLX shares. BMO Capital Markets cut Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 target price on the stock. in a research report on Friday, July 31st. Citigroup decreased their price objective on Roblox from $70.00 to $60.00 and set a "buy" rating for the company in a research note on Monday, August 3rd. Oppenheimer reaffirmed an "outperform" rating on shares of Roblox in a research report on Friday, September 11th. Raymond James Financial reiterated a "buy" rating on shares of Roblox in a research note on Friday, September 11th. Finally, Canaccord Genuity Group set a $58.00 target price on shares of Roblox in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, fourteen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $60.61.

Roblox Stock Performance

The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market cap of $34.02 billion, a PE ratio of -35.46 and a beta of 1.47. The firm has a fifty day moving average price of $43.64 and a 200 day moving average price of $49.40.

Roblox (NYSE:RBLX - Get Free Report) last announced its 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 analyst estimates 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 quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.41) EPS. Research analysts forecast that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 52,568 shares of the firm's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $1,995,481.28. Following the completion of the transaction, the chief executive officer owned 799,646 shares of the company's stock, valued at approximately $30,354,562.16. This trade represents a 6.17% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Buckley sold 4,321 shares of Roblox stock in a transaction on Monday, August 24th. The stock was sold at an average price of $38.68, for a total transaction of $167,136.28. Following the sale, the insider owned 87,213 shares of the company's stock, valued at $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. Insiders sold 185,236 shares of company stock worth $7,538,642 over the last ninety days. Company insiders own 10.05% of the company's stock.

Institutional Trading of Roblox

Large investors have recently added to or reduced their stakes in the company. SkyView Investment Advisors LLC acquired a new position in shares of Roblox in the second quarter valued at about $245,000. National Pension Service lifted its holdings in shares of Roblox by 34.0% during the second quarter. National Pension Service now owns 1,243,524 shares of the company's stock worth $67,623,000 after purchasing an additional 315,244 shares during the period. NorthRock Partners LLC lifted its holdings in shares of Roblox by 13.7% during the second quarter. NorthRock Partners LLC now owns 30,413 shares of the company's stock worth $1,654,000 after purchasing an additional 3,660 shares during the period. NewEdge Advisors LLC boosted its position in Roblox by 18.6% in the second quarter. NewEdge Advisors LLC now owns 16,977 shares of the company's stock valued at $923,000 after buying an additional 2,662 shares during the last quarter. Finally, IFP Advisors Inc increased its holdings in Roblox by 25.5% in the 2nd quarter. IFP Advisors Inc now owns 33,527 shares of the company's stock worth $1,823,000 after buying an additional 6,808 shares during the period. Hedge funds and other institutional investors own 94.46% of the company's stock.

Roblox Company Profile

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.

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