Roblox (NYSE:RBLX) Hits New 52-Week High – Should You Buy?

Roblox Co. (NYSE:RBLX)’s share price hit a new 52-week high on Monday . The company traded as high as $62.35 and last traded at $62.30, with a volume of 944469 shares trading hands. The stock had previously closed at $60.47.

Analysts Set New Price Targets

Several equities research analysts have commented on RBLX shares. Wells Fargo & Company boosted their price objective on Roblox from $54.00 to $58.00 and gave the stock an “overweight” rating in a research note on Friday, November 1st. Morgan Stanley raised Roblox from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $38.00 to $65.00 in a research note on Monday, November 4th. Canaccord Genuity Group increased their price objective on Roblox from $50.00 to $60.00 and gave the company a “buy” rating in a research note on Friday, November 1st. Deutsche Bank Aktiengesellschaft raised their price objective on Roblox from $45.00 to $60.00 and gave the company a “buy” rating in a report on Monday, November 4th. Finally, Raymond James reaffirmed a “strong-buy” rating and set a $60.00 target price on shares of Roblox in a report on Friday, November 22nd. Seven equities research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $55.67.

Roblox Price Performance

The company has a fifty day moving average of $55.15 and a 200-day moving average of $46.22. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 5.64. The stock has a market cap of $37.23 billion, a PE ratio of -37.37 and a beta of 1.43.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, October 31st. The company reported ($0.37) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.39) by $0.02. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. The company had revenue of $919.00 million for the quarter, compared to analyst estimates of $1.02 billion. During the same period in the prior year, the firm earned ($0.45) earnings per share. The business’s revenue for the quarter was up 9.5% compared to the same quarter last year. Sell-side analysts expect that Roblox Co. will post -1.56 EPS for the current fiscal year.

Insiders Place Their Bets

In other Roblox news, insider Manuel Bronstein sold 44,888 shares of the company’s stock in a transaction dated Wednesday, December 11th. The stock was sold at an average price of $60.01, for a total transaction of $2,693,728.88. Following the sale, the insider now owns 573,266 shares in the company, valued at $34,401,692.66. This represents a 7.26 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mark Reinstra sold 24,000 shares of Roblox stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $59.75, for a total value of $1,434,000.00. Following the completion of the transaction, the insider now owns 278,161 shares of the company’s stock, valued at $16,620,119.75. The trade was a 7.94 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 1,254,601 shares of company stock worth $65,622,735 in the last ninety days. 22.15% of the stock is owned by corporate insiders.

Institutional Trading of Roblox

Several hedge funds have recently added to or reduced their stakes in RBLX. Toronto Dominion Bank grew its holdings in Roblox by 34.3% during the 3rd quarter. Toronto Dominion Bank now owns 60,092 shares of the company’s stock worth $2,660,000 after acquiring an additional 15,333 shares in the last quarter. Entropy Technologies LP grew its stake in shares of Roblox by 168.4% during the third quarter. Entropy Technologies LP now owns 99,649 shares of the company’s stock worth $4,410,000 after purchasing an additional 62,521 shares in the last quarter. Dragoneer Investment Group LLC increased its holdings in Roblox by 26.9% in the second quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock valued at $437,039,000 after buying an additional 2,488,044 shares during the last quarter. Benjamin Edwards Inc. raised its stake in Roblox by 12,971.4% in the third quarter. Benjamin Edwards Inc. now owns 52,024 shares of the company’s stock valued at $2,302,000 after buying an additional 51,626 shares in the last quarter. Finally, State Street Corp raised its stake in Roblox by 2.3% in the third quarter. State Street Corp now owns 10,855,890 shares of the company’s stock valued at $480,482,000 after buying an additional 240,565 shares in the last quarter. Institutional investors and hedge funds 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.