Roblox (NYSE:RBLX) Sets New 12-Month High – Still a Buy?

Roblox Co. (NYSE:RBLX)’s stock price hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $66.86 and last traded at $65.95, with a volume of 452821 shares changing hands. The stock had previously closed at $65.53.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Citigroup increased their price target on Roblox from $53.00 to $63.00 and gave the company a “buy” rating in a research report on Tuesday, November 5th. The Goldman Sachs Group boosted their price target on shares of Roblox from $45.00 to $55.00 and gave the stock a “neutral” rating in a report on Friday, November 1st. BMO Capital Markets reissued an “outperform” rating and set a $62.00 target price (up previously from $56.00) on shares of Roblox in a research report on Friday, November 1st. Canaccord Genuity Group upped their target price on Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a report on Friday, November 1st. Finally, Wedbush reissued an “outperform” rating and issued a $49.00 price objective on shares of Roblox in a research report on Friday, October 25th. Seven research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $57.48.

Roblox Stock Performance

The company has a debt-to-equity ratio of 5.64, a quick ratio of 0.98 and a current ratio of 0.98. The business has a 50 day moving average price of $57.34 and a two-hundred day moving average price of $47.90. The company has a market cap of $40.20 billion, a P/E ratio of -40.30 and a beta of 1.43.

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

Insider Activity

In related news, CAO Amy Marie Rawlings sold 2,186 shares of the company’s stock in a transaction on Monday, November 4th. The stock was sold at an average price of $52.90, for a total value of $115,639.40. Following the sale, the chief accounting officer now directly owns 91,062 shares of the company’s stock, valued at $4,817,179.80. This represents a 2.34 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Anthony P. Lee sold 250,000 shares of the firm’s stock in a transaction on Thursday, January 16th. The shares were sold at an average price of $65.04, for a total value of $16,260,000.00. Following the transaction, the director now directly owns 6,254,137 shares of the company’s stock, valued at $406,769,070.48. This represents a 3.84 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,504,601 shares of company stock valued at $81,882,735. Company insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Toronto Dominion Bank increased its position in Roblox by 34.3% during the third quarter. Toronto Dominion Bank now owns 60,092 shares of the company’s stock valued at $2,660,000 after acquiring an additional 15,333 shares during the last quarter. Entropy Technologies LP increased its holdings in Roblox by 168.4% in the 3rd quarter. Entropy Technologies LP now owns 99,649 shares of the company’s stock worth $4,410,000 after acquiring an additional 62,521 shares in the last quarter. Dragoneer Investment Group LLC lifted its holdings in Roblox by 26.9% during the second quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock valued at $437,039,000 after purchasing an additional 2,488,044 shares in the last quarter. Benjamin Edwards Inc. raised its position in shares of Roblox by 12,971.4% during the 3rd quarter. Benjamin Edwards Inc. now owns 52,024 shares of the company’s stock valued at $2,302,000 after purchasing an additional 51,626 shares during the period. Finally, State Street Corp boosted its stake in shares of Roblox by 2.3% in the third quarter. State Street Corp now owns 10,855,890 shares of the company’s stock worth $480,482,000 after acquiring an additional 240,565 shares during the period. 94.46% of the stock is currently owned by 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.