Roblox (NYSE:RBLX) Trading Down 5% - Should You Sell?

Roblox Corporation (NYSE:RBLX - Get Free Report) shares fell 5% during mid-day trading on Wednesday . The stock traded as low as $115.00 and last traded at $114.25. 5,618,549 shares were traded during trading, a decline of 31% from the average session volume of 8,187,489 shares. The stock had previously closed at $120.20.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on RBLX. Canaccord Genuity Group upped their price target on Roblox from $80.00 to $84.00 and gave the company a "buy" rating in a research note on Friday, May 2nd. The Goldman Sachs Group upped their price target on Roblox from $63.00 to $80.00 and gave the company a "neutral" rating in a research note on Wednesday, May 14th. Barclays upped their price target on Roblox from $46.00 to $62.00 and gave the company an "equal weight" rating in a research note on Friday, May 2nd. Needham & Company LLC reaffirmed a "buy" rating on shares of Roblox in a research note on Friday, May 2nd. Finally, Bank of America upped their price target on Roblox from $86.00 to $103.00 and gave the company a "buy" rating in a research note on Thursday, June 5th. One research analyst has rated the stock with a sell rating, four have given a hold rating and nineteen have assigned a buy rating to the company. According to data from MarketBeat, Roblox has an average rating of "Moderate Buy" and an average target price of $95.95.

Roblox Stock Up 0.6%

The firm has a fifty day simple moving average of $100.68 and a 200-day simple moving average of $76.37. The company has a market capitalization of $80.57 billion, a P/E ratio of -88.65 and a beta of 1.60. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 3.39.

Roblox (NYSE:RBLX - Get Free Report) last announced 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. Roblox had a negative return on equity of 442.68% and a negative net margin of 22.94%. The company had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.14 billion. During the same period in the prior year, the company earned ($0.43) earnings per share. The company's revenue for the quarter was up 30.6% compared to the same quarter last year. On average, equities research analysts expect that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO David Baszucki sold 139,507 shares of the stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $105.19, for a total transaction of $14,674,741.33. Following the completion of the transaction, the chief executive officer directly owned 211,559 shares in the company, valued at approximately $22,253,891.21. This trade represents a 39.74% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Matthew D. Kaufman sold 6,000 shares of the stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $118.51, for a total value of $711,060.00. Following the transaction, the insider owned 307,223 shares of the company's stock, valued at approximately $36,408,997.73. The trade was a 1.92% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 6,651,690 shares of company stock worth $593,440,562 over the last ninety days. 12.92% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Mirae Asset Global Investments Co. Ltd. grew its holdings in shares of Roblox by 15.5% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 35,483 shares of the company's stock worth $2,096,000 after buying an additional 4,760 shares in the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new position in shares of Roblox during the first quarter worth about $890,000. IFM Investors Pty Ltd grew its holdings in shares of Roblox by 7.2% during the first quarter. IFM Investors Pty Ltd now owns 92,118 shares of the company's stock worth $5,370,000 after buying an additional 6,180 shares in the last quarter. Montag A & Associates Inc. grew its holdings in shares of Roblox by 1,193.7% during the first quarter. Montag A & Associates Inc. now owns 26,934 shares of the company's stock worth $1,570,000 after buying an additional 24,852 shares in the last quarter. Finally, Azzad Asset Management Inc. ADV bought a new position in shares of Roblox during the first quarter worth about $280,000. 94.46% of the stock is currently owned by institutional investors.

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.