Roblox (NYSE:RBLX) CFO Sells $763,556.64 in Stock

Roblox Corporation (NYSE:RBLX) CFO Naveen Chopra sold 16,863 shares of Roblox stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction of $763,556.64. Following the sale, the chief financial officer directly owned 380,758 shares of the company’s stock, valued at $17,240,722.24. This represents a 4.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Price Performance

Shares of NYSE RBLX traded up $2.09 during mid-day trading on Friday, reaching $48.23. 10,126,707 shares of the company were exchanged, compared to its average volume of 11,949,403. Roblox Corporation has a 52 week low of $40.15 and a 52 week high of $150.59. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The stock has a market capitalization of $32.39 billion, a PE ratio of -30.53 and a beta of 1.50. The company’s 50 day moving average price is $53.81 and its 200 day moving average price is $71.69.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same period in the previous year, the firm posted ($0.32) EPS. The firm’s revenue was up 43.4% compared to the same quarter last year. Sell-side analysts forecast that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

Roblox declared that its Board of Directors has approved a share repurchase program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On Roblox

A number of hedge funds have recently modified their holdings of RBLX. Reyes Financial Architecture Inc. increased its position in shares of Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company’s stock valued at $25,000 after acquiring an additional 194 shares during the period. Hanson & Doremus Investment Management purchased a new position in shares of Roblox in the first quarter valued at about $25,000. Pilgrim Partners Asia Pte Ltd purchased a new position in shares of Roblox in the third quarter valued at about $26,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox in the fourth quarter valued at about $27,000. Finally, GW&K Investment Management LLC increased its position in shares of Roblox by 76.3% in the fourth 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. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Wall Street Analyst Weigh In

RBLX has been the topic of a number of analyst reports. Wolfe Research initiated coverage on shares of Roblox in a research report on Friday, May 1st. They issued an “outperform” rating on the stock. The Goldman Sachs Group decreased their target price on shares of Roblox from $125.00 to $65.00 and set a “buy” rating on the stock in a research report on Friday, May 1st. DA Davidson decreased their target price on shares of Roblox from $47.50 to $45.00 and set a “neutral” rating on the stock in a research report on Friday. TD Cowen upgraded shares of Roblox from a “sell” rating to a “hold” rating and decreased their target price for the stock from $54.00 to $49.00 in a research report on Friday, May 1st. Finally, Canaccord Genuity Group decreased their target price on shares of Roblox from $140.00 to $80.00 and set a “buy” rating on the stock in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $87.07.

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.