Roblox (NYSE:RBLX) Shares Gap Up – Here’s What Happened

Roblox Co. (NYSE:RBLX) shares gapped up prior to trading on Wednesday . The stock had previously closed at $56.26, but opened at $58.41. Roblox shares last traded at $58.19, with a volume of 1,185,924 shares traded.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Needham & Company LLC raised their price objective on shares of Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a research report on Friday, November 1st. Wedbush restated an “outperform” rating and issued a $49.00 price objective on shares of Roblox in a research report on Friday, October 25th. Citigroup increased their target price on Roblox from $53.00 to $63.00 and gave the stock a “buy” rating in a research report on Tuesday, November 5th. Wells Fargo & Company lifted their target price on Roblox from $54.00 to $58.00 and gave the company an “overweight” rating in a research note on Friday, November 1st. Finally, BMO Capital Markets restated an “outperform” rating and issued a $62.00 price target (up from $56.00) on shares of Roblox in a research note on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $55.67.

Roblox Trading Down 0.5 %

The firm has a fifty day moving average price of $48.52 and a two-hundred day moving average price of $42.97. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 5.64.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.39) by $0.02. The company had revenue of $919.00 million during the quarter, compared to analyst estimates of $1.02 billion. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. The firm’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter last year, the business posted ($0.45) EPS. On average, equities research analysts anticipate that Roblox Co. will post -1.56 earnings per share for the current year.

Insider Buying and Selling

In other news, CAO Amy Marie Rawlings sold 2,186 shares of the business’s stock in a transaction dated Monday, November 4th. The shares were sold at an average price of $52.90, for a total value of $115,639.40. Following the completion of the sale, the chief accounting officer now owns 91,062 shares in the company, valued at approximately $4,817,179.80. The trade was a 2.34 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO David Baszucki sold 166,666 shares of the stock in a transaction that occurred on Wednesday, September 18th. The shares were sold at an average price of $45.56, for a total transaction of $7,593,302.96. Following the transaction, the chief executive officer now owns 135,755 shares in the company, valued at approximately $6,184,997.80. This represents a 55.11 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,412,379 shares of company stock valued at $71,728,919 over the last quarter. 22.15% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Roblox

A number of hedge funds have recently made changes to their positions in RBLX. Swedbank AB raised its holdings in Roblox by 0.5% in the second quarter. Swedbank AB now owns 53,297 shares of the company’s stock worth $1,983,000 after purchasing an additional 285 shares in the last quarter. Coronation Fund Managers Ltd. purchased a new position in shares of Roblox in the 2nd quarter worth approximately $2,663,000. Blue Trust Inc. raised its stake in shares of Roblox by 1,836.5% during the 2nd quarter. Blue Trust Inc. now owns 3,931 shares of the company’s stock worth $150,000 after acquiring an additional 3,728 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its stake in Roblox by 17.6% in the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 9,984,817 shares of the company’s stock valued at $371,535,000 after acquiring an additional 1,491,726 shares in the last quarter. Finally, First Horizon Advisors Inc. lifted its holdings in shares of Roblox by 44.9% during the 2nd quarter. First Horizon Advisors Inc. now owns 2,593 shares of the company’s stock valued at $96,000 after purchasing an additional 804 shares during the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

About Roblox

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.