Roblox (NYSE:RBLX) Reaches New 1-Year High - Should You Buy?

Roblox Corporation (NYSE:RBLX - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday . The stock traded as high as $104.63 and last traded at $104.07, with a volume of 1905596 shares changing hands. The stock had previously closed at $102.09.

Analyst Ratings Changes

Several equities research analysts recently issued reports on RBLX shares. Bank of America raised their target price on shares of Roblox from $86.00 to $103.00 and gave the company a "buy" rating in a research note on Thursday, June 5th. JPMorgan Chase & Co. raised their target price on shares of Roblox from $80.00 to $100.00 and gave the company an "overweight" rating in a research note on Tuesday, June 3rd. Barclays raised their target price on shares of Roblox from $46.00 to $62.00 and gave the company an "equal weight" rating in a research note on Friday, May 2nd. Wells Fargo & Company raised their target price on shares of Roblox from $70.00 to $78.00 and gave the company an "overweight" rating in a research note on Friday, May 2nd. Finally, BMO Capital Markets reiterated an "outperform" rating and issued a $95.00 target price (up from $82.00) on shares of Roblox in a research note on Friday, May 30th. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $78.04.

Roblox Price Performance

The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 3.39. The firm has a market cap of $71.19 billion, a price-to-earnings ratio of -78.32 and a beta of 1.56. The company's 50-day moving average is $82.30 and its 200-day moving average is $68.52.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported ($0.32) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.41) by $0.09. The business had revenue of $1.04 billion for the quarter, compared to analyst estimates of $1.14 billion. Roblox had a negative net margin of 22.94% and a negative return on equity of 442.68%. The firm's revenue for the quarter was up 30.6% on a year-over-year basis. During the same quarter last year, the business posted ($0.43) EPS. Equities research analysts predict that Roblox Corporation will post -1.49 earnings per share for the current year.

Insider Buying and Selling

In other Roblox news, CAO Amy Marie Rawlings sold 6,391 shares of the firm's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $80.66, for a total value of $515,498.06. Following the sale, the chief accounting officer now owns 73,931 shares in the company, valued at $5,963,274.46. This trade represents a 7.96% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO Michael Guthrie sold 50,000 shares of the firm's stock in a transaction that occurred on Thursday, April 3rd. The shares were sold at an average price of $58.79, for a total transaction of $2,939,500.00. Following the completion of the sale, the chief financial officer now owns 516,434 shares in the company, valued at $30,361,154.86. This represents a 8.83% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 6,712,649 shares of company stock worth $584,262,803. Corporate insiders own 12.92% of the company's stock.

Institutional Trading of Roblox

Hedge funds have recently added to or reduced their stakes in the stock. Principal Financial Group Inc. lifted its holdings in shares of Roblox by 53.9% during the fourth quarter. Principal Financial Group Inc. now owns 279,849 shares of the company's stock worth $16,192,000 after purchasing an additional 98,041 shares during the period. Sigma Planning Corp lifted its holdings in shares of Roblox by 63.7% during the fourth quarter. Sigma Planning Corp now owns 11,165 shares of the company's stock worth $646,000 after purchasing an additional 4,343 shares during the period. IFP Advisors Inc lifted its holdings in shares of Roblox by 18.0% during the fourth quarter. IFP Advisors Inc now owns 2,926 shares of the company's stock worth $169,000 after purchasing an additional 447 shares during the period. Bank of New York Mellon Corp lifted its holdings in shares of Roblox by 0.5% during the fourth quarter. Bank of New York Mellon Corp now owns 1,736,556 shares of the company's stock worth $100,477,000 after purchasing an additional 9,481 shares during the period. Finally, Amalgamated Bank lifted its holdings in shares of Roblox by 3.7% during the fourth quarter. Amalgamated Bank now owns 35,271 shares of the company's stock worth $2,041,000 after purchasing an additional 1,256 shares during the period. Institutional investors and hedge funds own 94.46% 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.