Roblox (NYSE:RBLX) Shares Gap Down – Time to Sell?

Shares of Roblox Co. (NYSE:RBLX) gapped down before the market opened 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 changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on RBLX shares. Citigroup upped their price target on Roblox from $63.00 to $82.00 and gave the stock a “buy” rating in a research note on Monday, February 3rd. Roth Mkm lifted their price target on Roblox from $54.00 to $70.00 and gave the stock a “neutral” rating in a research report on Monday, January 27th. BTIG Research upped their price target on shares of Roblox from $51.00 to $56.00 and gave the stock a “buy” rating in a research note on Friday, November 1st. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Roblox from $45.00 to $60.00 and gave the company a “buy” rating in a research note on Monday, November 4th. Finally, Needham & Company LLC increased their price target on shares of Roblox from $60.00 to $72.00 and gave the company a “buy” rating in a report on Friday. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $64.19.

Roblox Price Performance

The firm has a 50 day moving average price of $62.47 and a 200 day moving average price of $50.62. The stock has a market capitalization of $40.34 billion, a PE ratio of -45.80 and a beta of 1.46. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 5.64.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, February 6th. The company reported ($0.33) EPS for the quarter, topping the consensus estimate of ($0.46) by $0.13. Roblox had a negative return on equity of 795.19% and a negative net margin of 25.97%. Research analysts anticipate that Roblox Co. will post -1.4 earnings per share for the current year.

Insider Activity

In other Roblox news, CAO Amy Marie Rawlings sold 3,601 shares of the stock in a transaction dated Friday, November 22nd. The shares were sold at an average price of $49.32, for a total transaction of $177,601.32. Following the completion of the transaction, the chief accounting officer now owns 81,407 shares of the company’s stock, valued at $4,014,993.24. This represents a 4.24 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Anthony P. Lee sold 25,000 shares of Roblox stock in a transaction dated Friday, November 15th. The stock was sold at an average price of $52.34, for a total value of $1,308,500.00. Following the completion of the sale, the director now directly owns 5,731,695 shares in the company, valued at $299,996,916.30. This trade represents a 0.43 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,306,335 shares of company stock worth $77,348,316 in the last three months. Company insiders own 22.15% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Truist Financial Corp bought a new stake in shares of Roblox in the 2nd quarter worth about $559,000. Cetera Investment Advisers increased its stake in Roblox by 4.4% during the second quarter. Cetera Investment Advisers now owns 41,332 shares of the company’s stock worth $1,538,000 after acquiring an additional 1,748 shares during the last quarter. Sanctuary Advisors LLC bought a new stake in shares of Roblox in the 2nd quarter valued at approximately $1,105,000. GAMMA Investing LLC boosted its holdings in shares of Roblox by 132.8% in the 3rd quarter. GAMMA Investing LLC now owns 929 shares of the company’s stock worth $41,000 after purchasing an additional 530 shares during the period. Finally, Dynamic Advisor Solutions LLC bought a new position in shares of Roblox during the 3rd quarter valued at approximately $235,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.