Roblox (NYSE:RBLX) Shares Gap Up on Analyst Upgrade

Roblox Co. (NYSE:RBLX)’s stock price gapped up prior to trading on Wednesday after JPMorgan Chase & Co. raised their price target on the stock from $50.00 to $51.00. The stock had previously closed at $41.29, but opened at $42.40. JPMorgan Chase & Co. currently has an overweight rating on the stock. Roblox shares last traded at $41.87, with a volume of 1,375,586 shares trading hands.

Other analysts have also recently issued research reports about the stock. Benchmark raised their price objective on shares of Roblox from $40.00 to $44.00 and gave the stock a “buy” rating in a report on Friday, August 2nd. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Roblox from $40.00 to $45.00 and gave the stock a “buy” rating in a report on Friday, August 2nd. Jefferies Financial Group assumed coverage on shares of Roblox in a report on Thursday, July 11th. They set a “hold” rating and a $42.00 price objective on the stock. Piper Sandler raised their target price on shares of Roblox from $48.00 to $54.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 9th. Finally, Wolfe Research assumed coverage on shares of Roblox in a research report on Tuesday, July 16th. They set a “peer perform” rating on the stock. Eight analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, Roblox has an average rating of “Moderate Buy” and an average price target of $46.29.

Insider Activity at Roblox

In other Roblox news, insider Mark Reinstra sold 12,000 shares of the business’s stock in a transaction on Thursday, August 15th. The shares were sold at an average price of $40.00, for a total transaction of $480,000.00. Following the sale, the insider now directly owns 342,656 shares in the company, valued at approximately $13,706,240. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. In other news, insider Mark Reinstra sold 12,000 shares of Roblox stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $40.00, for a total transaction of $480,000.00. Following the completion of the transaction, the insider now owns 342,656 shares of the company’s stock, valued at $13,706,240. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Arvind Chakravarthy sold 14,176 shares of Roblox stock in a transaction on Friday, August 23rd. The stock was sold at an average price of $43.94, for a total value of $622,893.44. Following the transaction, the insider now directly owns 276,892 shares of the company’s stock, valued at $12,166,634.48. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 612,673 shares of company stock worth $26,805,956 in the last three months. Insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RBLX. Vanguard Group Inc. raised its stake in shares of Roblox by 10.4% during the 1st quarter. Vanguard Group Inc. now owns 51,082,302 shares of the company’s stock worth $1,950,322,000 after buying an additional 4,818,022 shares during the last quarter. Ieq Capital LLC raised its stake in Roblox by 27.6% in the 1st quarter. Ieq Capital LLC now owns 12,409,924 shares of the company’s stock valued at $473,811,000 after purchasing an additional 2,684,713 shares during the last quarter. Dragoneer Investment Group LLC raised its stake in Roblox by 26.9% in the 2nd quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company’s stock valued at $437,039,000 after purchasing an additional 2,488,044 shares during the last quarter. Greenvale Capital LLP acquired a new position in Roblox in the 2nd quarter valued at about $89,304,000. Finally, Marshall Wace LLP acquired a new position in Roblox in the 2nd quarter valued at about $87,543,000. Institutional investors and hedge funds own 91.08% of the company’s stock.

Roblox Price Performance

The firm’s 50 day moving average is $43.24 and its two-hundred day moving average is $39.03. The company has a quick ratio of 1.03, a current ratio of 1.03 and a debt-to-equity ratio of 9.04.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, August 1st. The company reported ($0.32) earnings per share for the quarter, beating the consensus estimate of ($0.39) by $0.07. Roblox had a negative net margin of 34.12% and a negative return on equity of 1,187.59%. The firm had revenue of $893.50 million during the quarter, compared to the consensus estimate of $897.88 million. During the same quarter in the previous year, the company posted ($0.46) EPS. The firm’s revenue for the quarter was up 31.2% on a year-over-year basis. On average, analysts expect that Roblox Co. will post -1.58 EPS for the current year.

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.