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

Roblox Co. (NYSE:RBLX)’s stock price gapped down prior to trading 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.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on RBLX shares. Benchmark upped their price objective on shares of Roblox from $44.00 to $60.00 and gave the stock a “buy” rating in a report on Friday, November 1st. BTIG Research upped their target price on Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Roth Mkm lifted their price target on Roblox from $54.00 to $70.00 and gave the company a “neutral” rating in a research report on Monday, January 27th. Wedbush restated an “outperform” rating and issued a $49.00 price objective on shares of Roblox in a report on Friday, October 25th. Finally, Needham & Company LLC boosted their price target on shares of Roblox from $50.00 to $60.00 and gave the stock a “buy” rating in a research report on Friday, November 1st. Seven equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $60.05.

Roblox Trading Down 13.8 %

The company has a fifty day moving average of $61.79 and a 200-day moving average of $50.32. 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 PE ratio of -39.79 and a beta of 1.46.

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

Insider Activity

In other Roblox news, CEO David Baszucki sold 138,555 shares of the stock in a transaction on Thursday, January 30th. The shares were sold at an average price of $71.62, for a total transaction of $9,923,309.10. Following the transaction, the chief executive officer now directly owns 129,301 shares of the company’s stock, valued at $9,260,537.62. This represents a 51.73 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Anthony P. Lee sold 250,000 shares of the business’s stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $65.04, for a total value 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. This represents a 3.84 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,306,335 shares of company stock worth $77,348,316. 22.15% of the stock is owned by corporate insiders.

Institutional Trading of Roblox

Institutional investors and hedge funds have recently modified their holdings of the company. Northwestern Mutual Wealth Management Co. raised its holdings in Roblox by 6.0% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 10,623 shares of the company’s stock worth $395,000 after acquiring an additional 605 shares during the period. Truist Financial Corp acquired a new stake in shares of Roblox in the second quarter valued at about $559,000. Cetera Investment Advisers increased its stake in shares of Roblox by 4.4% in 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 period. Sanctuary Advisors LLC acquired a new position in shares of Roblox during the 2nd quarter worth about $1,105,000. Finally, GAMMA Investing LLC boosted its stake in Roblox by 132.8% during the 3rd quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock valued at $41,000 after purchasing an additional 530 shares during the period. 94.46% of the stock is currently owned by institutional investors and hedge funds.

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.