Roblox (NYSE:RBLX) Trading Up 9% – Here’s What Happened

Roblox Corporation (NYSE:RBLX)’s stock price shot up 9% on Monday . The company traded as high as $46.24 and last traded at $46.6880. 2,109,332 shares were traded during mid-day trading, a decline of 82% from the average session volume of 11,806,612 shares. The stock had previously closed at $42.85.

Wall Street Analyst Weigh In

RBLX has been the subject of a number of analyst reports. Wolfe Research started coverage on shares of Roblox in a report on Friday, May 1st. They set an “outperform” rating for the company. BTIG Research cut shares of Roblox from a “buy” rating to a “neutral” rating in a research report on Friday, May 1st. Jefferies Financial Group cut shares of Roblox from a “hold” rating to a “hold” rating in a research report on Friday, May 1st. Oppenheimer assumed coverage on Roblox in a report on Friday, May 1st. They set an “outperform” rating on the stock. Finally, Benchmark reissued a “hold” rating on shares of Roblox in a research note on Monday, February 2nd. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $87.17.

Roblox Price Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The company’s fifty day moving average price is $55.15 and its two-hundred day moving average price is $73.87. The company has a market cap of $31.48 billion, a price-to-earnings ratio of -29.67 and a beta of 1.50.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. The business had revenue of $1.44 billion for the quarter, compared to analysts’ expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm’s revenue was up 43.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.32) EPS. On average, equities research analysts forecast that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Insider Transactions at Roblox

In related news, insider Matthew D. Kaufman sold 13,325 shares of Roblox stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $57.94, for a total value of $772,050.50. Following the sale, the insider owned 364,320 shares of the company’s stock, valued at approximately $21,108,700.80. This trade represents a 3.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the company’s stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $44.97, for a total value of $749,470.02. Following the transaction, the director directly owned 1,294,501 shares of the company’s stock, valued at approximately $58,213,709.97. This trade represents a 1.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 76,144 shares of company stock valued at $4,235,769 over the last three months. 12.92% of the stock is currently owned by corporate insiders.

Institutional Trading of Roblox

A number of institutional investors have recently made changes to their positions in the business. Quantinno Capital Management LP lifted its position in Roblox by 18.4% during the 1st quarter. Quantinno Capital Management LP now owns 829,155 shares of the company’s stock worth $46,897,000 after buying an additional 129,010 shares in the last quarter. Ardmore Road Asset Management LP acquired a new stake in shares of Roblox in the 1st quarter valued at approximately $7,070,000. OMERS ADMINISTRATION Corp increased its holdings in Roblox by 39.4% during the first quarter. OMERS ADMINISTRATION Corp now owns 21,926 shares of the company’s stock worth $1,240,000 after buying an additional 6,198 shares during the last quarter. Renaissance Technologies LLC raised its position in Roblox by 7.5% during the first quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company’s stock worth $403,054,000 after acquiring an additional 497,625 shares in the last quarter. Finally, Gavilan Investment Partners LLC acquired a new stake in Roblox in the first quarter valued at $17,534,000. Institutional investors own 94.46% of the company’s stock.

About Roblox

Roblox Corporation operates Roblox, a user-generated online platform that enables people to create, share and monetize immersive 3D experiences and games. The core offering centers on Roblox Studio, a development environment that allows independent creators and studios to design interactive worlds using the company’s building tools and scripting language. Content on the platform spans games, virtual hangouts, branded experiences and live events, all delivered through a persistent social environment.

Roblox’s business model is built around its virtual economy and creator ecosystem.