Roblox (NYSE:RBLX) Reaches New 52-Week High Following Better-Than-Expected Earnings

Roblox Co. (NYSE:RBLX)’s share price reached a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $51.15 and last traded at $48.70, with a volume of 3573876 shares. The stock had previously closed at $43.14.

The company reported ($0.37) EPS for the quarter, beating the consensus estimate of ($0.38) by $0.01. The firm had revenue of $919.00 million during the quarter, compared to analyst estimates of $1.02 billion. Roblox had a negative net margin of 34.12% and a negative return on equity of 1,187.59%. The business’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.45) EPS.

Analyst Ratings Changes

Several research analysts have recently weighed in on RBLX shares. BTIG Research lifted their price target on shares of Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a research note on Friday. Citigroup lifted their target price on Roblox from $46.00 to $53.00 and gave the company a “buy” rating in a research report on Wednesday, September 25th. Wells Fargo & Company upped their price target on Roblox from $54.00 to $58.00 and gave the stock an “overweight” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price objective on Roblox from $51.00 to $62.00 and gave the company an “overweight” rating in a research report on Friday. Finally, Jefferies Financial Group started coverage on shares of Roblox in a report on Thursday, July 11th. They issued a “hold” rating and a $42.00 target price for the company. Eight research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, Roblox has an average rating of “Moderate Buy” and an average price target of $52.55.

Insider Activity

In related news, CAO Amy Marie Rawlings sold 4,933 shares of the business’s stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $40.35, for a total value of $199,046.55. Following the sale, the chief accounting officer now directly owns 99,617 shares in the company, valued at approximately $4,019,545.95. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Roblox news, Director Anthony P. Lee sold 200,000 shares of the stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $50.33, for a total transaction of $10,066,000.00. Following the completion of the transaction, the director now owns 4,707,579 shares in the company, valued at $236,932,451.07. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Amy Marie Rawlings sold 4,933 shares of Roblox stock in a transaction dated Tuesday, August 20th. The stock was sold at an average price of $40.35, for a total value of $199,046.55. Following the completion of the transaction, the chief accounting officer now owns 99,617 shares of the company’s stock, valued at approximately $4,019,545.95. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 979,341 shares of company stock worth $43,897,012 over the last 90 days. Corporate insiders own 22.15% of the company’s stock.

Hedge Funds Weigh In On Roblox

Several large investors have recently modified their holdings of the stock. AEGON ASSET MANAGEMENT UK Plc boosted its stake in Roblox by 23.2% during the third quarter. AEGON ASSET MANAGEMENT UK Plc now owns 447,067 shares of the company’s stock worth $19,783,000 after buying an additional 84,198 shares during the period. Capital Performance Advisors LLP purchased a new position in shares of Roblox during the 3rd quarter worth about $100,000. Principal Financial Group Inc. grew its holdings in Roblox by 308.2% during the 3rd quarter. Principal Financial Group Inc. now owns 181,808 shares of the company’s stock valued at $8,047,000 after purchasing an additional 137,267 shares during the last quarter. Gulf International Bank UK Ltd raised its position in Roblox by 8.4% in the 3rd quarter. Gulf International Bank UK Ltd now owns 37,686 shares of the company’s stock worth $1,667,000 after purchasing an additional 2,932 shares during the period. Finally, Robeco Institutional Asset Management B.V. lifted its stake in Roblox by 724.7% in the third quarter. Robeco Institutional Asset Management B.V. now owns 804,488 shares of the company’s stock worth $35,607,000 after purchasing an additional 706,939 shares during the last quarter. Institutional investors own 91.08% of the company’s stock.

Roblox Stock Performance

The firm has a market cap of $30.79 billion, a PE ratio of -29.91 and a beta of 1.60. The business has a 50 day simple moving average of $43.67 and a two-hundred day simple moving average of $39.34. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 9.04.

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.