Roblox (NYSE:RBLX) Sets New 1-Year High – Still a Buy?

Roblox Co. (NYSE:RBLX)’s share price reached a new 52-week high on Wednesday . The stock traded as high as $63.71 and last traded at $63.55, with a volume of 340122 shares. The stock had previously closed at $62.26.

Analysts Set New Price Targets

Several analysts have commented on RBLX shares. Benchmark lifted their target price on shares of Roblox from $44.00 to $60.00 and gave the stock a “buy” rating in a research note on Friday, November 1st. BMO Capital Markets reaffirmed an “outperform” rating and set a $62.00 price target (up from $56.00) on shares of Roblox in a research report on Friday, November 1st. Citigroup upped their target price on shares of Roblox from $53.00 to $63.00 and gave the company a “buy” rating in a research note on Tuesday, November 5th. Barclays raised their price target on shares of Roblox from $40.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Friday, November 1st. Finally, Piper Sandler lifted their price objective on shares of Roblox from $54.00 to $65.00 and gave the stock an “overweight” rating in a report on Friday, November 1st. Seven investment analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Roblox presently has an average rating of “Moderate Buy” and an average price target of $56.62.

Roblox Trading Up 3.0 %

The business has a 50-day simple moving average of $56.39 and a two-hundred day simple moving average of $47.12. The stock has a market cap of $38.96 billion, a price-to-earnings ratio of -39.10 and a beta of 1.43. The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, October 31st. The company reported ($0.37) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $919.00 million during the quarter, compared to analysts’ expectations of $1.02 billion. During the same quarter in the previous year, the company earned ($0.45) EPS. The business’s revenue was up 9.5% on a year-over-year basis. Equities analysts forecast that Roblox Co. will post -1.56 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Manuel Bronstein sold 37,846 shares of the stock in a transaction on Monday, November 4th. The shares were sold at an average price of $52.03, for a total transaction of $1,969,127.38. Following the transaction, the insider now directly owns 674,259 shares of the company’s stock, valued at $35,081,695.77. This represents a 5.31 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark Reinstra sold 24,000 shares of Roblox stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $59.75, for a total transaction of $1,434,000.00. Following the completion of the sale, the insider now directly owns 278,161 shares of the company’s stock, valued at approximately $16,620,119.75. This trade represents a 7.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,254,601 shares of company stock valued at $65,622,735 in the last ninety days. 22.15% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Versant Capital Management Inc grew its position in Roblox by 83.9% in the 4th quarter. Versant Capital Management Inc now owns 524 shares of the company’s stock valued at $30,000 after purchasing an additional 239 shares during the period. V Square Quantitative Management LLC acquired a new position in shares of Roblox during the third quarter valued at about $27,000. Frazier Financial Advisors LLC increased its position in shares of Roblox by 20,800.0% during the third quarter. Frazier Financial Advisors LLC now owns 627 shares of the company’s stock worth $28,000 after acquiring an additional 624 shares in the last quarter. GAMMA Investing LLC increased its holdings in Roblox by 132.8% during the 3rd quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after purchasing an additional 530 shares in the last quarter. Finally, Huntington National Bank boosted its position in shares of Roblox by 277.0% during the third quarter. Huntington National Bank now owns 1,048 shares of the company’s stock valued at $46,000 after buying an additional 770 shares during the last quarter. Institutional investors 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.