Roblox (NYSE:RBLX) Insider Sells 5,607 Shares

Roblox Corporation (NYSE:RBLX) insider Sean Jack Buckley sold 5,607 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.97, for a total transaction of $212,897.79. Following the sale, the insider owned 91,534 shares in the company, valued at $3,475,545.98. The trade was a 5.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Price Performance

Roblox stock traded up $0.33 during mid-day trading on Monday, hitting $38.70. The stock had a trading volume of 8,331,997 shares, compared to its average volume of 11,929,390. Roblox Corporation has a one year low of $33.88 and a one year high of $142.00. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. The firm has a market capitalization of $25.93 billion, a P/E ratio of -27.06 and a beta of 1.46. The firm’s 50 day moving average is $47.11 and its 200 day moving average is $52.57.

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

Roblox announced that its board has initiated a stock repurchase program on Tuesday, May 19th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Roblox

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC raised its holdings in shares of Roblox by 379.8% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 921,424 shares of the company’s stock worth $53,102,000 after acquiring an additional 729,379 shares in the last quarter. PensionDanmark Pensionsforsikringsaktieselskab grew its holdings in shares of Roblox by 35.5% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 130,130 shares of the company’s stock valued at $7,076,000 after purchasing an additional 34,120 shares in the last quarter. Glynn Capital Management LLC purchased a new position in shares of Roblox in the fourth quarter valued at $5,706,000. Militia Capital Management LLC purchased a new position in shares of Roblox in the first quarter valued at $2,590,000. Finally, Assenagon Asset Management S.A. increased its position in Roblox by 89.0% in the second quarter. Assenagon Asset Management S.A. now owns 1,893,790 shares of the company’s stock worth $102,984,000 after purchasing an additional 891,634 shares during the last quarter. 94.46% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. B. Riley Financial lowered their price target on Roblox from $80.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, August 3rd. Arete Research set a $95.00 price objective on shares of Roblox and gave the company a “buy” rating in a report on Monday, June 29th. Bank of America cut shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price objective on the stock. in a research report on Friday, May 1st. BTIG Research downgraded shares of Roblox from a “neutral” rating to a “sell” rating and set a $30.00 target price on the stock. in a report on Friday, July 31st. Finally, Seaport Research Partners lowered shares of Roblox to a “neutral” rating in a research report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Roblox has a consensus rating of “Hold” and an average price target of $60.89.

Roblox Company Profile

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.