Roblox (NYSE:RBLX) Trading 5.6% Higher – What’s Next?

Shares of Roblox Corporation (NYSE:RBLXGet Free Report) rose 5.6% on Tuesday . The company traded as high as $48.03 and last traded at $48.21. Approximately 4,970,505 shares were traded during trading, a decline of 57% from the average daily volume of 11,642,269 shares. The stock had previously closed at $45.66.

More Roblox News

Here are the key news stories impacting Roblox this week:

Wall Street Analyst Weigh In

RBLX has been the topic of a number of recent analyst reports. Morgan Stanley reissued an “overweight” rating and issued a $62.00 price target on shares of Roblox in a report on Friday, May 1st. Piper Sandler cut shares of Roblox from an “overweight” rating to a “neutral” rating and reduced their price objective for the company from $100.00 to $50.00 in a research note on Monday, May 4th. Canaccord Genuity Group decreased their target price on shares of Roblox from $140.00 to $80.00 and set a “buy” rating on the stock in a report on Friday, May 1st. BTIG Research cut shares of Roblox from a “buy” rating to a “neutral” rating in a research note on Friday, May 1st. Finally, Needham & Company LLC started coverage on shares of Roblox in a report on Friday, May 1st. They issued a “buy” rating and a $60.00 price target for the company. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $87.07.

Read Our Latest Report on RBLX

Roblox Trading Up 6.8%

The firm has a fifty day simple moving average of $49.38 and a two-hundred day simple moving average of $64.44. The stock has a market cap of $34.43 billion, a PE ratio of -32.50 and a beta of 1.44. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLXGet Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company’s revenue for the quarter was up 43.4% on a year-over-year basis. During the same quarter last year, the company posted ($0.32) EPS. As a group, equities analysts expect that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

Roblox announced that its Board of Directors has authorized a share repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at Roblox

In other Roblox news, insider Mark Reinstra sold 5,978 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $41.71, for a total value of $249,342.38. Following the completion of the transaction, the insider owned 426,760 shares of the company’s stock, valued at $17,800,159.60. The trade was a 1.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total transaction of $649,896.12. Following the completion of the transaction, the insider directly owned 349,964 shares in the company, valued at $15,842,870.28. The trade was a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 189,449 shares of company stock valued at $9,179,410 over the last quarter. Company insiders own 10.05% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in RBLX. Sunbelt Securities Inc. raised its position in Roblox by 58.7% during 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. Horizon Investments LLC boosted its holdings in shares of Roblox by 2,636.4% in the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company’s stock worth $42,000 after purchasing an additional 290 shares in the last quarter. Reyes Financial Architecture Inc. boosted its holdings in shares of Roblox by 164.4% in the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock worth $25,000 after purchasing an additional 194 shares in the last quarter. Fideuram Asset Management Ireland dac bought a new position in shares of Roblox during the 4th quarter valued at about $27,000. Finally, GW&K Investment Management LLC increased its position in shares of Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after purchasing an additional 161 shares during the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Roblox Company Profile

(Get Free Report)

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.

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