Roblox (NYSE:RBLX) Shares Gap Down - Time to Sell?

Key Points

• Roblox's share price gapped down significantly, opening at $113.83 after closing at $125.28.
• Analysts have provided mixed ratings, with 19 analysts giving a "buy" rating while two rated the stock as a sell, highlighting a consensus rating of "Moderate Buy".
• The company reported a loss of ($0.41) per share for the last quarter, missing the estimated loss, but revenue increased by 50.5% year-over-year to $1.44 billion.

Roblox Corporation (NYSE:RBLX - Get Free Report)'s share price gapped down prior to trading on Friday . The stock had previously closed at $125.28, but opened at $113.83. Roblox shares last traded at $116.31, with a volume of 5,680,662 shares.

Wall Street Analyst Weigh In

RBLX has been the topic of a number of recent research reports. Wedbush raised their target price on Roblox from $142.00 to $165.00 and gave the stock an "outperform" rating in a report on Friday, August 1st. Wall Street Zen lowered Roblox from a "hold" rating to a "sell" rating in a research note on Saturday, August 2nd. Needham & Company LLC raised their price objective on Roblox from $79.00 to $159.00 and gave the company a "buy" rating in a research report on Friday, August 1st. BMO Capital Markets lifted their price target on Roblox from $135.00 to $150.00 and gave the stock an "outperform" rating in a research report on Friday, August 1st. Finally, JPMorgan Chase & Co. lifted their price target on Roblox from $120.00 to $125.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 16th. Three analysts have rated the stock with a sell rating, four have given a hold rating and nineteen have issued a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $117.59.

Roblox Stock Down 0.7%

The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 2.94. The stock has a 50 day simple moving average of $112.96 and a 200 day simple moving average of $83.00. The stock has a market cap of $75.20 billion, a price-to-earnings ratio of -81.53 and a beta of 1.63.

Roblox (NYSE:RBLX - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.04). The firm had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%. The business's quarterly revenue was up 50.5% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.32) earnings per share. As a group, analysts expect that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

Insider Transactions at Roblox

In other Roblox news, CEO David Baszucki sold 687,500 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $87.97, for a total transaction of $60,479,375.00. Following the transaction, the chief executive officer owned 211,559 shares in the company, valued at approximately $18,610,845.23. This represents a 76.47% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 5,127,213 shares of company stock worth $493,410,989. 12.92% of the stock is owned by insiders.

Hedge Funds Weigh In On Roblox

A number of institutional investors have recently bought and sold shares of the stock. Caxton Associates LLP bought a new stake in shares of Roblox in the second quarter worth about $1,414,000. FORA Capital LLC raised its stake in shares of Roblox by 843.9% during the second quarter. FORA Capital LLC now owns 89,017 shares of the company's stock valued at $9,365,000 after acquiring an additional 79,586 shares in the last quarter. Headlands Technologies LLC raised its stake in shares of Roblox by 4,515.3% during the second quarter. Headlands Technologies LLC now owns 44,999 shares of the company's stock valued at $4,734,000 after acquiring an additional 44,024 shares in the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in Roblox by 4.3% during the second quarter. CANADA LIFE ASSURANCE Co now owns 475,025 shares of the company's stock valued at $50,012,000 after buying an additional 19,428 shares during the period. Finally, SkyView Investment Advisors LLC purchased a new position in Roblox in the second quarter worth $316,000. 94.46% of the stock is 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.