Roblox (NYSE:RBLX) Shares Gap Down – Here’s Why

Roblox Co. (NYSE:RBLX)’s share price gapped down before the market opened on Thursday . The stock had previously closed at $75.47, but opened at $60.14. Roblox shares last traded at $62.20, with a volume of 12,504,453 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on RBLX. Wedbush reissued an “outperform” rating and issued a $49.00 target price on shares of Roblox in a report on Friday, October 25th. Needham & Company LLC raised their target price on Roblox from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Roth Mkm upped their price target on Roblox from $54.00 to $70.00 and gave the company a “neutral” rating in a report on Monday, January 27th. Piper Sandler reissued an “overweight” rating and set a $72.00 price objective (up previously from $65.00) on shares of Roblox in a report on Tuesday, January 28th. Finally, Raymond James restated a “strong-buy” rating and issued a $60.00 target price on shares of Roblox in a report on Friday, November 22nd. Seven analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Roblox currently has an average rating of “Moderate Buy” and an average target price of $60.05.

Roblox Trading Down 13.8 %

The company has a debt-to-equity ratio of 5.64, a current ratio of 0.98 and a quick ratio of 0.98. The firm has a market capitalization of $39.51 billion, a price-to-earnings ratio of -39.79 and a beta of 1.46. The business’s 50 day moving average price is $61.79 and its 200-day moving average price is $50.32.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, February 6th. The company reported ($0.33) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.46) by $0.13. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. Equities analysts forecast that Roblox Co. will post -1.56 EPS for the current fiscal year.

Insider Transactions at Roblox

In other Roblox news, CEO David Baszucki sold 138,555 shares of the business’s stock in a transaction dated Thursday, January 30th. The stock was sold at an average price of $71.62, for a total transaction of $9,923,309.10. Following the completion of the sale, the chief executive officer now owns 129,301 shares of the company’s stock, valued at approximately $9,260,537.62. The trade was a 51.73 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Anthony P. Lee sold 250,000 shares of the stock in a transaction on Thursday, January 16th. The stock was sold at an average price of $65.04, for a total transaction of $16,260,000.00. Following the completion of the sale, 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 disclosure for this sale can be found here. Insiders sold a total of 1,306,335 shares of company stock valued at $77,348,316 over the last three months. 22.15% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roblox

Institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. boosted its holdings in Roblox by 6.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 10,623 shares of the company’s stock valued at $395,000 after purchasing an additional 605 shares during the last quarter. Truist Financial Corp bought a new position in Roblox during the 2nd quarter worth approximately $559,000. Cetera Investment Advisers lifted its stake in Roblox by 4.4% during the second quarter. Cetera Investment Advisers now owns 41,332 shares of the company’s stock worth $1,538,000 after purchasing an additional 1,748 shares during the last quarter. Sanctuary Advisors LLC acquired a new position in Roblox in the second quarter worth $1,105,000. Finally, GAMMA Investing LLC raised its holdings in shares of Roblox by 132.8% during the third quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after purchasing an additional 530 shares during the period. Institutional investors and hedge funds own 94.46% of the company’s stock.

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.