Roblox (NYSE:RBLX) Insider Mark Reinstra Sells 6,250 Shares of Stock

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 6,250 shares of Roblox stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $40.00, for a total value of $250,000.00. Following the sale, the insider owned 415,998 shares of the company’s stock, valued at approximately $16,639,920. This trade represents a 1.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Mark Reinstra also recently made the following trade(s):

• On Monday, July 6th, Mark Reinstra sold 4,512 shares of Roblox stock. The shares were sold at an average price of $57.34, for a total transaction of $258,718.08.
• On Monday, June 8th, Mark Reinstra sold 5,978 shares of Roblox stock. The shares were sold at an average price of $41.71, for a total transaction of $249,342.38.

Roblox Price Performance

RBLX opened at $38.52 on Friday. The stock’s 50 day moving average price is $47.21 and its 200-day moving average price is $52.77. Roblox Corporation has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The stock has a market capitalization of $25.81 billion, a PE ratio of -26.94 and a beta of 1.46.

Roblox (NYSE:RBLX) last released its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, beating the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The firm’s revenue was up 8.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.41) earnings per share. On average, equities research analysts predict that Roblox Corporation will post -1.39 EPS for the current year.

Roblox announced that its Board of Directors has approved a share buyback plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to purchase up to 9.5% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on RBLX. Needham & Company LLC cut their target price on shares of Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft downgraded Roblox from a “buy” rating to a “hold” rating and reduced their price target for the stock from $56.00 to $38.00 in a research report on Friday, July 31st. Moffett Nathanson reaffirmed a “neutral” rating and issued a $40.00 price target on shares of Roblox in a report on Monday, August 3rd. Morgan Stanley dropped their target price on Roblox from $62.00 to $55.00 and set an “overweight” rating on the stock in a research report on Friday, July 31st. Finally, Wells Fargo & Company set a $46.00 price target on Roblox in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Roblox currently has a consensus rating of “Hold” and a consensus target price of $60.89.

Institutional Investors Weigh In On Roblox

A number of institutional investors have recently made changes to their positions in the stock. Hanson & Doremus Investment Management purchased a new position in shares of Roblox in the 1st quarter valued at about $25,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox during the fourth quarter worth approximately $27,000. Basecamp Wealth Advisors LLC grew its position in Roblox by 98.8% during the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company’s stock worth $29,000 after purchasing an additional 252 shares during the last quarter. GW&K Investment Management LLC increased its position in Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after acquiring an additional 161 shares during the period. Finally, Root Financial Partners LLC raised its position in Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company’s stock worth $32,000 after buying an additional 283 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors and hedge funds.

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.