Roblox (NYSE:RBLX) Sees Strong Trading Volume After Earnings Beat

Roblox Co. (NYSE:RBLX) saw unusually-strong trading volume on Thursday following a better than expected earnings announcement. Approximately 8,845,310 shares changed hands during trading, an increase of 12% from the previous session’s volume of 7,909,706 shares.The stock last traded at $69.56 and had previously closed at $67.05.

The company reported ($0.32) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.09. The business had revenue of $1.04 billion for the quarter, compared to the consensus estimate of $1.14 billion. Roblox had a negative return on equity of 665.98% and a negative net margin of 25.97%. Roblox’s revenue for the quarter was up 30.6% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.43) earnings per share.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Citigroup increased their target price on shares of Roblox from $78.00 to $85.00 and gave the stock a “buy” rating in a research report on Friday. FBN Securities began coverage on shares of Roblox in a report on Friday, March 28th. They set a “sector perform” rating and a $65.00 target price on the stock. Barclays lifted their price target on Roblox from $46.00 to $62.00 and gave the company an “equal weight” rating in a research report on Friday. Benchmark increased their price objective on Roblox from $71.00 to $77.00 and gave the stock a “buy” rating in a report on Friday. Finally, Moffett Nathanson lowered Roblox from a “neutral” rating to a “sell” rating and set a $34.00 target price for the company. in a report on Friday, February 7th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, seventeen have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $67.27.

Insider Activity

In other news, CFO Michael Guthrie sold 50,000 shares of the stock in a transaction dated Monday, February 24th. The shares were sold at an average price of $61.14, for a total transaction of $3,057,000.00. Following the completion of the sale, the chief financial officer now directly owns 395,465 shares in the company, valued at approximately $24,178,730.10. This represents a 11.22 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO David Baszucki sold 229,167 shares of the business’s stock in a transaction dated Monday, April 7th. The shares were sold at an average price of $52.48, for a total value of $12,026,684.16. Following the transaction, the chief executive officer now owns 221,983 shares in the company, valued at approximately $11,649,667.84. This represents a 50.80 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 764,399 shares of company stock valued at $45,431,661. 22.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Roblox

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in Roblox by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 53,239,693 shares of the company’s stock worth $3,080,449,000 after purchasing an additional 462,450 shares in the last quarter. FMR LLC raised its stake in Roblox by 89.4% in the fourth quarter. FMR LLC now owns 39,658,528 shares of the company’s stock worth $2,294,642,000 after buying an additional 18,715,837 shares in the last quarter. Wealthfront Advisers LLC lifted its holdings in Roblox by 74,400.8% in the fourth quarter. Wealthfront Advisers LLC now owns 17,335,594 shares of the company’s stock worth $1,063,365,000 after buying an additional 17,312,325 shares during the period. Ieq Capital LLC boosted its position in Roblox by 26.8% during the 4th quarter. Ieq Capital LLC now owns 16,592,623 shares of the company’s stock valued at $960,049,000 after acquiring an additional 3,507,901 shares in the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Roblox by 3.0% during the 4th quarter. Geode Capital Management LLC now owns 8,579,173 shares of the company’s stock worth $495,564,000 after acquiring an additional 246,610 shares during the period. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Price Performance

The stock has a market cap of $46.63 billion, a P/E ratio of -51.17 and a beta of 1.49. 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 firm has a 50-day moving average price of $59.73 and a 200-day moving average price of $58.37.

Roblox Company Profile

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.