Roblox (NYSE:RBLX) Hits New 12-Month High - Time to Buy?

Roblox Co. (NYSE:RBLX - Get Free Report) shares reached a new 52-week high on Wednesday . The company traded as high as $63.71 and last traded at $63.55, with a volume of 340122 shares traded. The stock had previously closed at $62.26.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RBLX. JPMorgan Chase & Co. lifted their price objective on Roblox from $62.00 to $72.00 and gave the stock an "overweight" rating in a report on Friday, January 10th. The Goldman Sachs Group lifted their price target on Roblox from $45.00 to $55.00 and gave the stock a "neutral" rating in a research note on Friday, November 1st. BTIG Research increased their price objective on shares of Roblox from $51.00 to $56.00 and gave the company a "buy" rating in a research note on Friday, November 1st. Piper Sandler lifted their target price on shares of Roblox from $54.00 to $65.00 and gave the stock an "overweight" rating in a research report on Friday, November 1st. Finally, Wedbush reiterated an "outperform" rating and issued a $49.00 price target on shares of Roblox in a research report on Friday, October 25th. Seven equities research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.48.

Roblox Stock Performance

The company has a market cap of $39.84 billion, a price-to-earnings ratio of -39.98 and a beta of 1.43. The company has a current ratio of 0.98, a quick ratio of 0.98 and a debt-to-equity ratio of 5.64. The stock's 50 day moving average price is $56.85 and its 200 day moving average price is $47.36.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, October 31st. The company reported ($0.37) EPS for the quarter, topping the consensus estimate of ($0.39) by $0.02. The firm had revenue of $919.00 million during the quarter, compared to analyst estimates of $1.02 billion. Roblox had a negative net margin of 30.90% and a negative return on equity of 986.36%. Roblox's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.45) earnings per share. On average, analysts expect that Roblox Co. will post -1.56 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO David Baszucki sold 166,668 shares of the business's stock in a transaction dated Friday, October 25th. The stock was sold at an average price of $42.15, for a total transaction of $7,025,056.20. Following the completion of the sale, the chief executive officer now owns 135,755 shares in the company, valued at approximately $5,722,073.25. The trade was a 55.11 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Amy Marie Rawlings sold 2,186 shares of the firm's stock in a transaction that occurred on Monday, November 4th. The shares were sold at an average price of $52.90, for a total transaction of $115,639.40. Following the completion of the transaction, the chief accounting officer now owns 91,062 shares in the company, valued at $4,817,179.80. The trade was a 2.34 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,504,601 shares of company stock valued at $81,882,735. 22.15% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RBLX. ValueAct Holdings L.P. boosted its holdings in Roblox by 340.7% in the 3rd quarter. ValueAct Holdings L.P. now owns 10,135,921 shares of the company's stock worth $448,616,000 after acquiring an additional 7,835,921 shares during the period. FMR LLC lifted its holdings in Roblox by 24.5% in the 3rd quarter. FMR LLC now owns 20,942,691 shares of the company's stock worth $926,924,000 after buying an additional 4,115,286 shares in the last quarter. Dragoneer Investment Group LLC grew its stake in shares of Roblox by 26.9% during the second quarter. Dragoneer Investment Group LLC now owns 11,745,203 shares of the company's stock valued at $437,039,000 after acquiring an additional 2,488,044 shares in the last quarter. Whale Rock Capital Management LLC acquired a new stake in shares of Roblox during the third quarter valued at about $107,491,000. Finally, Greenvale Capital LLP purchased a new stake in shares of Roblox during the second quarter worth about $89,304,000. 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.