Roblox (NYSE:RBLX) Shares Gap Down – Should You Sell?

Roblox Corporation (NYSE:RBLX)’s stock price gapped down prior to trading on Monday. The stock had previously closed at $46.44, but opened at $43.60. Roblox shares last traded at $42.6360, with a volume of 1,766,062 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts recently commented on RBLX shares. Cantor Fitzgerald began coverage on Roblox in a research report on Monday, June 29th. They set an “overweight” rating on the stock. Seaport Research Partners downgraded Roblox to a “neutral” rating in a research report on Monday, June 29th. Raymond James Financial reissued a “buy” rating on shares of Roblox in a research note on Friday, September 11th. Wedbush increased their target price on Roblox from $40.00 to $48.00 and gave the stock a “neutral” rating in a report on Monday, September 14th. Finally, Needham & Company LLC raised their target price on Roblox from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, September 23rd. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, thirteen have given a Hold rating and four have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $60.79.

Roblox Price Performance

The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The firm has a market capitalization of $29.18 billion, a P/E ratio of -30.45 and a beta of 1.47. The company has a 50-day moving average price of $43.10 and a 200-day moving average price of $48.83.

Roblox (NYSE:RBLX) last announced its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. The business had revenue of $1.47 billion during the quarter, compared to analysts’ expectations of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The firm’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.41) earnings per share. On average, sell-side analysts predict that Roblox Corporation will post -1.39 earnings per share for the current year.

Insider Activity

In related news, insider Matthew D. Kaufman sold 14,904 shares of the stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $565,755.84. Following the sale, the insider directly owned 335,060 shares in the company, valued at $12,718,877.60. This trade represents a 4.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of Roblox stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $680,774.64. Following the transaction, the insider directly owned 398,064 shares in the company, valued at $15,110,509.44. The trade was a 4.31% 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. In the last 90 days, insiders have sold 185,236 shares of company stock valued at $7,538,642. Insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Several large investors have recently bought and sold shares of RBLX. Fideuram Asset Management Ireland dac acquired a new stake in Roblox in the fourth quarter worth $27,000. LM Advisors LLC bought a new position in shares of Roblox during the fourth quarter worth $35,000. Hanson & Doremus Investment Management acquired a new position in shares of Roblox in the 1st quarter valued at $25,000. Basecamp Wealth Advisors LLC grew its holdings in shares of Roblox by 98.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock valued at $29,000 after buying an additional 252 shares during the period. Finally, Root Financial Partners LLC increased its position in shares of Roblox by 100.7% in the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock valued at $32,000 after buying an additional 283 shares in the last quarter. Institutional investors own 94.46% of the company’s stock.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.