Roblox (NYSE:RBLX) Trading 2.9% Higher – Still a Buy?

Roblox Co. (NYSE:RBLX)’s stock price traded up 2.9% on Friday . The company traded as high as $59.00 and last traded at $59.63. 1,462,330 shares changed hands during mid-day trading, a decline of 81% from the average session volume of 7,563,877 shares. The stock had previously closed at $57.92.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. CICC Research assumed coverage on Roblox in a research report on Tuesday, January 14th. They issued an “outperform” rating for the company. JPMorgan Chase & Co. lifted their price objective on Roblox from $62.00 to $72.00 and gave the stock an “overweight” rating in a research note on Friday, January 10th. Moffett Nathanson lowered 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. Piper Sandler reiterated an “overweight” rating and issued a $72.00 price objective (up from $65.00) on shares of Roblox in a research note on Tuesday, January 28th. Finally, Needham & Company LLC lifted their price objective on Roblox from $60.00 to $72.00 and gave the stock a “buy” rating in a research note on Friday, February 7th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, seventeen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, Roblox has an average rating of “Moderate Buy” and a consensus price target of $64.19.

Roblox Stock Performance

The company has a market capitalization of $37.89 billion, a P/E ratio of -42.21 and a beta of 1.49. The firm has a 50 day moving average price of $63.54 and a two-hundred day moving average price of $54.90. The company has a debt-to-equity ratio of 4.82, a quick ratio of 0.98 and a current ratio of 1.02.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, February 6th. The company reported ($0.33) earnings per share for the quarter, beating the consensus estimate of ($0.46) by $0.13. Roblox had a negative return on equity of 665.98% and a negative net margin of 25.97%. On average, research analysts expect that Roblox Co. will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Anthony P. Lee sold 250,000 shares of the business’s stock in a transaction that occurred on Thursday, January 16th. The stock was 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. The trade was a 3.84 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Arvind Chakravarthy sold 982 shares of the business’s stock in a transaction that occurred on Thursday, February 27th. The stock was sold at an average price of $61.26, for a total value of $60,157.32. Following the completion of the transaction, the insider now directly owns 204,261 shares in the company, valued at $12,513,028.86. The trade was a 0.48 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 950,466 shares of company stock worth $61,646,297. Company insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Vanguard Group Inc. lifted its holdings in Roblox by 0.9% during the 4th quarter. Vanguard Group Inc. now owns 53,239,693 shares of the company’s stock worth $3,080,449,000 after buying an additional 462,450 shares in the last quarter. FMR LLC lifted its holdings in Roblox by 89.4% during the 4th quarter. FMR LLC now owns 39,658,528 shares of the company’s stock worth $2,294,642,000 after buying an additional 18,715,837 shares in the last quarter. Wealthfront Advisers LLC lifted its holdings in Roblox by 74,400.8% during the 4th quarter. Wealthfront Advisers LLC now owns 17,335,594 shares of the company’s stock worth $1,063,365,000 after buying an additional 17,312,325 shares in the last quarter. Ieq Capital LLC lifted its holdings in Roblox by 26.8% during the 4th quarter. Ieq Capital LLC now owns 16,592,623 shares of the company’s stock worth $960,049,000 after buying an additional 3,507,901 shares in the last quarter. Finally, State Street Corp lifted its holdings in Roblox by 2.3% during the 3rd quarter. State Street Corp now owns 10,855,890 shares of the company’s stock worth $480,482,000 after buying an additional 240,565 shares in the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

Roblox Company Profile

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.