Roblox (NYSE:RBLX) Shares Gap Up – Time to Buy?

Roblox Co. (NYSE:RBLX) shares gapped up before the market opened on Friday . The stock had previously closed at $60.43, but opened at $62.40. Roblox shares last traded at $63.52, with a volume of 1,748,359 shares changing hands.

Analyst Ratings Changes

A number of research firms have weighed in on RBLX. Wedbush reiterated an “outperform” rating and issued a $83.00 target price on shares of Roblox in a research note on Friday, February 7th. Morgan Stanley raised their price target on shares of Roblox from $65.00 to $75.00 and gave the stock an “overweight” rating in a research note on Monday, January 13th. Canaccord Genuity Group boosted 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. Citigroup raised their target price on shares of Roblox from $63.00 to $82.00 and gave the stock a “buy” rating in a research report on Monday, February 3rd. Finally, Moffett Nathanson cut Roblox from a “neutral” rating to a “sell” rating and set a $34.00 price objective on the stock. in a research note on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, six have assigned a hold rating, seventeen have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $64.19.

Roblox Price Performance

The stock’s 50 day simple moving average is $64.04 and its 200-day simple moving average is $52.99. The company has a debt-to-equity ratio of 4.82, a quick ratio of 0.98 and a current ratio of 1.02. The firm has a market cap of $39.33 billion, a price-to-earnings ratio of -43.82 and a beta of 1.46.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, February 6th. The company reported ($0.33) EPS for the quarter, topping analysts’ consensus estimates of ($0.46) by $0.13. Roblox had a negative return on equity of 665.98% and a negative net margin of 25.97%. Equities research analysts anticipate that Roblox Co. will post -1.49 EPS for the current fiscal year.

Insider Activity at Roblox

In other Roblox news, Director Anthony P. Lee sold 25,000 shares of Roblox stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $51.19, for a total transaction of $1,279,750.00. Following the completion of the sale, the director now directly owns 5,706,695 shares in the company, valued at approximately $292,125,717.05. The trade was a 0.44 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO David Baszucki sold 138,555 shares of the stock in a transaction on Thursday, January 30th. The stock was sold at an average price of $71.62, for a total transaction of $9,923,309.10. Following the completion of the sale, the chief executive officer now owns 129,301 shares in the company, valued at $9,260,537.62. The trade was a 51.73 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,160,553 shares of company stock worth $71,809,407 over the last quarter. Insiders own 22.15% of the company’s stock.

Institutional Trading of Roblox

A number of hedge funds have recently modified their holdings of RBLX. Integrated Advisors Network LLC purchased a new stake in Roblox in the 4th quarter worth approximately $201,000. Polar Asset Management Partners Inc. lifted its stake in shares of Roblox by 21.7% in the 4th quarter. Polar Asset Management Partners Inc. now owns 82,000 shares of the company’s stock valued at $4,745,000 after purchasing an additional 14,600 shares during the period. American Trust purchased a new stake in Roblox during the fourth quarter worth $211,000. Mackenzie Financial Corp boosted its stake in shares of Roblox by 14.7% during the 4th quarter. Mackenzie Financial Corp now owns 28,329 shares of the company’s stock worth $1,639,000 after acquiring an additional 3,633 shares in the last quarter. Finally, Forum Financial Management LP purchased a new stake in shares of Roblox during the 4th quarter worth about $223,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

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.