Roblox (NYSE:RBLX) Trading 7.6% Higher – Still a Buy?

Roblox Corporation (NYSE:RBLX)’s stock price was up 7.6% during mid-day trading on Tuesday . The stock traded as high as $81.71 and last traded at $82.5650. Approximately 4,944,440 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 10,112,715 shares. The stock had previously closed at $76.72.

Wall Street Analysts Forecast Growth

RBLX has been the subject of several research reports. Wolfe Research set a $100.00 price target on shares of Roblox in a research report on Monday, January 5th. BTIG Research reduced their target price on shares of Roblox from $180.00 to $174.00 and set a “buy” rating for the company in a report on Thursday, October 30th. Needham & Company LLC reiterated a “buy” rating and issued a $159.00 price target on shares of Roblox in a research report on Friday, October 31st. Piper Sandler set a $130.00 price target on shares of Roblox in a research note on Friday, October 31st. Finally, Cowen reissued a “sell” rating on shares of Roblox in a research report on Tuesday, January 6th. Eighteen analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Roblox presently has a consensus rating of “Moderate Buy” and an average target price of $134.23.

Roblox Trading Up 10.1%

The stock’s 50-day simple moving average is $90.40 and its two-hundred day simple moving average is $112.57. The company has a debt-to-equity ratio of 2.54, a current ratio of 0.96 and a quick ratio of 0.96. The firm has a market capitalization of $55.34 billion, a P/E ratio of -59.29 and a beta of 1.64.

Roblox (NYSE:RBLX) last released its earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.07. The company had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. Roblox’s revenue for the quarter was up 70.3% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.37) EPS. Equities research analysts expect that Roblox Corporation will post -1.49 EPS for the current year.

Insider Activity

In other news, Director Anthony P. Lee sold 59,000 shares of Roblox stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $79.96, for a total transaction of $4,717,640.00. Following the sale, the director owned 257,258 shares in the company, valued at $20,570,349.68. This trade represents a 18.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CAO Amy Marie Rawlings sold 2,642 shares of the business’s stock in a transaction on Thursday, November 20th. The stock was sold at an average price of $95.24, for a total transaction of $251,624.08. Following the completion of the transaction, the chief accounting officer directly owned 46,452 shares in the company, valued at $4,424,088.48. This trade represents a 5.38% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 497,300 shares of company stock valued at $45,713,286 in the last three months. 12.92% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Pilgrim Partners Asia Pte Ltd bought a new stake in shares of Roblox in the third quarter worth about $26,000. Whittier Trust Co. of Nevada Inc. bought a new stake in Roblox in the 3rd quarter worth approximately $37,000. Total Investment Management Inc. purchased a new stake in shares of Roblox during the 2nd quarter worth approximately $29,000. Root Financial Partners LLC purchased a new position in shares of Roblox in the third quarter valued at $38,000. Finally, Sunbelt Securities Inc. grew its holdings in shares of Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after purchasing an additional 105 shares in the last quarter. Institutional investors own 94.46% of the company’s stock.

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.