Roblox (NYSE:RBLX) Shares Gap Up – Here’s What Happened

Roblox Corporation (NYSE:RBLX)’s share price gapped up before the market opened on Monday . The stock had previously closed at $47.82, but opened at $50.90. Roblox shares last traded at $50.2310, with a volume of 1,138,611 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. DA Davidson set a $40.00 target price on Roblox in a report on Friday, July 31st. Seaport Research Partners cut shares of Roblox to a “neutral” rating in a research report on Monday, June 29th. Bank of America boosted their target price on Roblox from $44.00 to $48.00 and gave the stock a “neutral” rating in a report on Monday, September 14th. Wolfe Research downgraded shares of Roblox from an “outperform” rating to a “hold” rating in a research note on Friday, July 31st. Finally, Benchmark cut Roblox from a “hold” rating to a “sell” rating and set a $33.00 price objective on the stock. in a research report on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, fourteen have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $60.61.

Roblox Stock Down 2.7%

The firm has a market capitalization of $33.39 billion, a PE ratio of -34.85 and a beta of 1.47. The company has a fifty day moving average price of $43.47 and a 200-day moving average price of $49.16. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82.

Roblox (NYSE:RBLX) last issued its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.08. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The company had revenue of $1.47 billion for the quarter, compared to analysts’ expectations of $1.60 billion. During the same period in the previous year, the firm posted ($0.41) earnings per share. The firm’s revenue for the quarter was up 8.3% on a year-over-year basis. As a group, analysts expect that Roblox Corporation will post -1.39 earnings per share for the current year.

Insider Activity

In related news, insider Matthew Kaufman sold 14,904 shares of Roblox stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $565,755.84. Following the completion of the sale, the insider directly owned 335,060 shares in the company, valued at $12,718,877.60. The trade was a 4.26% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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 the business’s stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $680,774.64. Following the completion of the sale, the insider owned 398,064 shares of the company’s stock, valued at approximately $15,110,509.44. This represents a 4.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Company insiders own 10.05% of the company’s stock.

Institutional Investors Weigh In On Roblox

Hedge funds have recently made changes to their positions in the stock. Capital International Investors boosted its stake in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock valued at $2,589,282,000 after acquiring an additional 2,184,439 shares in the last quarter. Geode Capital Management LLC increased its position in Roblox by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company’s stock valued at $988,002,000 after buying an additional 547,103 shares in the last quarter. Renaissance Technologies LLC raised its stake in Roblox by 7.5% in the first quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company’s stock valued at $403,054,000 after buying an additional 497,625 shares during the last quarter. Amundi raised its stake in Roblox by 83.7% in the first quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after buying an additional 2,631,074 shares during the last quarter. Finally, Norges Bank acquired a new stake in Roblox in the fourth quarter worth about $435,424,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

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.