Roblox (NYSE:RBLX) Reaches New 52-Week High – Here’s Why

Roblox Co. (NYSE:RBLX)’s stock price hit a new 52-week high during trading on Monday . The stock traded as high as $88.59 and last traded at $87.60, with a volume of 1796479 shares traded. The stock had previously closed at $86.98.

Analyst Upgrades and Downgrades

Several brokerages have commented on RBLX. Roth Mkm upped their price target on Roblox from $72.00 to $74.00 and gave the stock a “neutral” rating in a research note on Friday, May 2nd. OTR Global upgraded Roblox from a “mixed” rating to a “positive” rating in a research note on Monday, February 3rd. BMO Capital Markets reaffirmed an “outperform” rating and issued a $95.00 target price (up previously from $82.00) on shares of Roblox in a research report on Friday. Needham & Company LLC reaffirmed a “buy” rating on shares of Roblox in a research report on Friday, May 2nd. Finally, Oppenheimer upped their target price on Roblox from $70.00 to $80.00 and gave the stock an “outperform” rating in a research report on Monday, May 5th. One equities research analyst has rated the stock with a sell rating, six have issued a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $70.86.

Roblox Stock Up 2.7%

The firm has a 50 day simple moving average of $67.73 and a two-hundred day simple moving average of $63.00. The company has a debt-to-equity ratio of 4.82, a quick ratio of 0.98 and a current ratio of 1.02. The stock has a market cap of $60.62 billion, a P/E ratio of -61.61 and a beta of 1.46.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, May 1st. The company reported ($0.32) earnings per share (EPS) for the quarter, beating the consensus estimate 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 analysts’ expectations of $1.14 billion. During the same period last year, the firm earned ($0.43) EPS. The firm’s revenue for the quarter was up 30.6% on a year-over-year basis. Equities research analysts predict that Roblox Co. will post -1.49 earnings per share for the current year.

Insider Activity

In related news, CAO Amy Marie Rawlings sold 6,391 shares of Roblox stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $80.66, for a total value of $515,498.06. Following the transaction, the chief accounting officer now directly owns 73,931 shares in the company, valued at $5,963,274.46. The trade was a 7.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Michael Guthrie sold 50,000 shares of Roblox stock in a transaction on Tuesday, March 4th. The stock was sold at an average price of $60.14, for a total value of $3,007,000.00. Following the completion of the transaction, the chief financial officer now owns 395,465 shares in the company, valued at $23,783,265.10. The trade was a 11.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 2,323,985 shares of company stock worth $164,299,582. 12.92% of the stock is owned by company insiders.

Hedge Funds Weigh In On Roblox

Hedge funds have recently modified their holdings of the stock. Gordian Capital Singapore Pte Ltd grew its holdings in shares of Roblox by 74.8% during the fourth quarter. Gordian Capital Singapore Pte Ltd now owns 561 shares of the company’s stock valued at $32,000 after buying an additional 240 shares in the last quarter. Larson Financial Group LLC grew its holdings in shares of Roblox by 819.0% during the first quarter. Larson Financial Group LLC now owns 579 shares of the company’s stock valued at $34,000 after buying an additional 516 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. purchased a new position in shares of Roblox during the first quarter valued at $39,000. Colonial Trust Co SC purchased a new position in shares of Roblox during the fourth quarter valued at $41,000. Finally, Parkside Financial Bank & Trust grew its holdings in shares of Roblox by 44.5% during the fourth quarter. Parkside Financial Bank & Trust now owns 747 shares of the company’s stock valued at $43,000 after buying an additional 230 shares in the last quarter. 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.