Roblox (NYSE:RBLX) Trading 7% Higher – Time to Buy?

Roblox Corporation (NYSE:RBLX)’s stock price rose 7% during mid-day trading on Monday . The company traded as high as $55.26 and last traded at $55.2860. Approximately 3,866,458 shares traded hands during mid-day trading, a decline of 66% from the average daily volume of 11,433,381 shares. The stock had previously closed at $51.68.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on RBLX shares. Piper Sandler set a $60.00 price objective on shares of Roblox in a research note on Tuesday. Jefferies Financial Group lowered Roblox from a “hold” rating to a “hold” rating in a research note on Friday, May 1st. Cantor Fitzgerald started coverage on Roblox in a report on Monday, June 29th. They issued an “overweight” rating for the company. Deutsche Bank Aktiengesellschaft assumed coverage on Roblox in a research report on Monday, June 29th. They set a “buy” rating on the stock. Finally, Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $85.85.

Roblox Stock Performance

The stock has a 50-day moving average of $48.94 and a 200 day moving average of $58.50. The stock has a market cap of $35.28 billion, a PE ratio of -33.25 and a beta of 1.41. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business’s revenue was up 43.4% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.32) EPS. Equities analysts predict that Roblox Corporation will post -1.39 EPS for the current fiscal year.

Roblox declared that its board has approved a stock buyback plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Insiders Place Their Bets

In related news, CFO Naveen K. Chopra sold 16,863 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $763,556.64. Following the transaction, the chief financial officer owned 380,758 shares of the company’s stock, valued at $17,240,722.24. This represents a 4.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Matthew D. Kaufman sold 14,356 shares of the stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the completion of the transaction, the insider owned 349,964 shares in the company, valued at approximately $15,842,870.28. The trade was a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 161,983 shares of company stock valued at $7,580,990. Corporate insiders own 10.05% of the company’s stock.

Institutional Trading of Roblox

A number of large investors have recently bought and sold shares of the business. Cypress Wealth Services LLC purchased a new position in Roblox in the fourth quarter valued at about $2,373,000. Yarbrough Capital LLC increased its stake in Roblox by 1,514.5% in the 4th quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock valued at $4,646,000 after purchasing an additional 53,780 shares in the last quarter. Allspring Global Investments Holdings LLC increased its stake in Roblox by 379.8% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock valued at $53,102,000 after purchasing an additional 729,379 shares in the last quarter. Glynn Capital Management LLC acquired a new position in Roblox during the fourth quarter worth $5,706,000. Finally, Engineers Gate Manager LP boosted its position in Roblox by 97.0% during the fourth quarter. Engineers Gate Manager LP now owns 293,744 shares of the company’s stock worth $23,802,000 after purchasing an additional 144,600 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

Roblox Company Profile

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.