Roblox (NYSE:RBLX) Shares Down 6.9% – Should You Sell?

Roblox Corporation (NYSE:RBLX)’s share price was down 6.9% on Tuesday . The company traded as low as $81.35 and last traded at $81.2160. Approximately 4,746,771 shares traded hands during trading, a decline of 62% from the average daily volume of 12,469,323 shares. The stock had previously closed at $87.28.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on RBLX. Wall Street Zen raised Roblox from a “sell” rating to a “hold” rating in a research report on Saturday, October 18th. Macquarie increased their price objective on shares of Roblox from $158.00 to $164.00 and gave the stock an “outperform” rating in a report on Tuesday, November 4th. BTIG Research decreased their target price on shares of Roblox from $180.00 to $174.00 and set a “buy” rating on the stock in a research report on Thursday, October 30th. Barclays boosted their target price on shares of Roblox from $120.00 to $130.00 and gave the company an “equal weight” rating in a report on Friday, October 31st. Finally, Benchmark reaffirmed a “hold” rating on shares of Roblox in a research note on Friday, October 31st. Seventeen equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $132.96.

Roblox Stock Down 9.7%

The stock has a fifty day moving average price of $88.53 and a 200-day moving average price of $111.93. The firm has a market cap of $51.62 billion, a PE ratio of -55.13 and a beta of 1.64. The company has a debt-to-equity ratio of 2.54, a quick ratio of 0.96 and a current ratio of 0.96.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, October 30th. The company reported ($0.37) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.44) by $0.07. Roblox had a negative net margin of 21.70% and a negative return on equity of 314.20%. The firm had revenue of $1.36 billion for the quarter, compared to analysts’ expectations of $1.64 billion. During the same period in the previous year, the company posted ($0.37) earnings per share. Roblox’s revenue was up 70.3% compared to the same quarter last year. Research analysts expect that Roblox Corporation will post -1.49 EPS for the current year.

Insider Buying and Selling at Roblox

In related news, insider Matthew D. Kaufman sold 20,867 shares of the company’s stock in a transaction on Thursday, November 20th. The shares were sold at an average price of $96.10, for a total transaction of $2,005,318.70. Following the completion of the sale, the insider directly owned 239,775 shares of the company’s stock, valued at approximately $23,042,377.50. This represents a 8.01% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Anthony P. Lee sold 66,000 shares of the stock in a transaction on Tuesday, November 4th. The shares were sold at an average price of $104.07, for a total value of $6,868,620.00. Following the completion of the sale, the director owned 266,008 shares of the company’s stock, valued at approximately $27,683,452.56. This represents a 19.88% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 504,300 shares of company stock worth $46,290,436. Corporate insiders own 12.92% of the company’s stock.

Institutional Trading of Roblox

A number of hedge funds have recently made changes to their positions in RBLX. Pilgrim Partners Asia Pte Ltd acquired a new position in Roblox in the 3rd quarter worth $26,000. Total Investment Management Inc. acquired a new stake in Roblox during the 2nd quarter valued at approximately $29,000. ORG Partners LLC purchased a new stake in Roblox during the 2nd quarter worth approximately $33,000. Whipplewood Advisors LLC purchased a new stake in Roblox during the 2nd quarter worth approximately $34,000. Finally, Whittier Trust Co. of Nevada Inc. acquired a new position in shares of Roblox in the 3rd quarter valued at approximately $37,000. Hedge funds and other institutional investors 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.