Morgan Stanley has recently raised Roblox Corp (RBLX) stock rating, as announced on November 4, 2024, according to Finviz. Earlier, on September 9, 2024, BTIG Research had reiterated the stock to Buy, setting a price target of $51 for RBLX stock. Wolfe Research also initiated Peer Perform rating. Additionally, Jefferies resumed Hold rating on July 11, 2024, with a target price of $42. Macquarie analysts, in their report published on June 14, 2024, also initiated Outperform rating and set a price target of $46 for Roblox Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Roblox Corp (RBLX) Stock Trading Recap
On Tuesday, Roblox Corp (RBLX) stock saw a modest uptick, ending the day at $53.53 which represents a slight increase of $1.37 or 2.63% from the prior close of $52.16. The stock opened at $51.76 and touched a low of $51.63 during the day, reaching a high of $53.63. The volume of shares traded was 6.23 million falling short of the average volume of 8.33 million.
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RBLX Stock Performance and Moving Averages
In recent trading, Roblox Corp (RBLX) stock price has shown some volatility, fluctuating 8.89% over the last five trades and 4.06% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 52.94%, and it has gained 23.74% in the previous three months. Currently, RBLX is trading at 3.73%, 14.95%, and 31.85% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, RBLX, a Communication Services sector stock, is trading -2.85% below its 52-week high but remains 81.15% above its 52-week low. The Average True Range (ATR) (14 days) of 1.91 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Roblox Corp’s Profitability and Valuation Ratios
Roblox Corp’s profitability metrics reveal financial health. The company currently boasts an operating margin of -34.91% and a profit margin of -30.90%, with a gross margin of 52.94%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Roblox Corp’s market capitalization stands at $35.13 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 10.44, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 184.95, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 19.25% of Roblox Corp (RBLX)’s shares, while financial institutions hold 63.56%.
Notable insider trades include Lee Anthony P, Director at Roblox Corp (RBLX), who sold 25000 shares on Dec 02 ’24, at $51.19 each, totaling $1.28 million. On Nov 27 ’24, Baszucki Gregory, Director, sold 26000 shares for $49.75 each, amounting to $1.29 million. Additionally, on Nov 26 ’24, Chakravarthy Arvind sold 14269 shares at $49.43 each, generating $0.71 million.
