Roblox (NYSE:RBLX) Sets New 12-Month High – Should You Buy?

Roblox Co. (NYSE:RBLX)’s share price reached a new 52-week high on Tuesday . The stock traded as high as $100.76 and last traded at $100.43, with a volume of 9312259 shares changing hands. The stock had previously closed at $97.17.

Analysts Set New Price Targets

Several research firms have commented on RBLX. BMO Capital Markets reaffirmed an “outperform” rating and set a $95.00 price target (up previously from $82.00) on shares of Roblox in a research report on Friday, May 30th. Barclays upped their price target on shares of Roblox from $46.00 to $62.00 and gave the company an “equal weight” rating in a research report on Friday, May 2nd. Benchmark raised their price objective on shares of Roblox from $71.00 to $77.00 and gave the stock a “buy” rating in a research report on Friday, May 2nd. Canaccord Genuity Group upped their target price on shares of Roblox from $80.00 to $84.00 and gave the company a “buy” rating in a report on Friday, May 2nd. Finally, Morgan Stanley lowered their price target on Roblox from $75.00 to $70.00 and set an “overweight” rating on the stock in a report on Thursday, April 17th. One investment analyst has rated the stock with a sell rating, seven have given a hold rating, seventeen have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Roblox has a consensus rating of “Moderate Buy” and a consensus price target of $76.09.

Roblox Stock Performance

The stock’s fifty day simple moving average is $75.95 and its 200-day simple moving average is $66.40. The company has a market capitalization of $68.12 billion, a PE ratio of -69.26 and a beta of 1.56. The company has a quick ratio of 0.98, a current ratio of 1.02 and a debt-to-equity ratio of 4.82.

Roblox (NYSE:RBLX) last posted its earnings results on Thursday, May 1st. The company reported ($0.32) EPS for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.09. Roblox had a negative return on equity of 665.98% and a negative net margin of 25.97%. The company had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.14 billion. During the same period in the previous year, the business earned ($0.43) earnings per share. Roblox’s quarterly revenue was up 30.6% compared to the same quarter last year. On average, research analysts predict that Roblox Co. will post -1.49 earnings per share for the current fiscal year.

Insider Activity

In other Roblox news, Director Anthony P. Lee sold 21,200 shares of the company’s stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $61.37, for a total value of $1,301,044.00. Following the transaction, the director now directly owns 6,589,757 shares in the company, valued at approximately $404,413,387.09. This represents a 0.32% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Michael Guthrie sold 50,000 shares of Roblox stock in a transaction dated Thursday, April 3rd. The stock was sold at an average price of $58.79, for a total transaction of $2,939,500.00. Following the sale, the chief financial officer now owns 516,434 shares of the company’s stock, valued at approximately $30,361,154.86. This trade represents a 8.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 5,253,072 shares of company stock worth $436,291,786 over the last ninety days. 12.92% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of RBLX. V Square Quantitative Management LLC lifted its position in Roblox by 320.0% during the fourth quarter. V Square Quantitative Management LLC now owns 2,587 shares of the company’s stock worth $149,000 after buying an additional 1,971 shares during the period. NewSquare Capital LLC lifted its holdings in shares of Roblox by 2.7% during the 1st quarter. NewSquare Capital LLC now owns 115,121 shares of the company’s stock worth $6,710,000 after acquiring an additional 3,065 shares during the period. Amundi boosted its position in shares of Roblox by 111.4% in the fourth quarter. Amundi now owns 3,191,137 shares of the company’s stock worth $198,010,000 after acquiring an additional 1,681,263 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its position in Roblox by 101.7% during the fourth quarter. Connor Clark & Lunn Investment Management Ltd. now owns 704,491 shares of the company’s stock worth $40,762,000 after purchasing an additional 355,270 shares during the last quarter. Finally, Focus Partners Advisor Solutions LLC purchased a new position in Roblox during the fourth quarter worth approximately $278,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

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.