Roblox (NYSE:RBLX) Insider Sells $250,000.00 in Stock

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 6,250 shares of Roblox stock in a transaction that occurred on 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 directly owned 415,998 shares in the company, valued at approximately $16,639,920. The trade was a 1.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. 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 stock was sold at an average price of $57.34, for a total value 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 value of $249,342.38.

Roblox Stock Down 0.4%

Shares of NYSE RBLX traded down $0.17 during mid-day trading on Thursday, hitting $38.52. 11,454,938 shares of the stock traded hands, compared to its average volume of 11,965,261. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. Roblox Corporation has a 52 week low of $33.88 and a 52 week high of $142.00. The company has a market cap of $25.81 billion, a price-to-earnings ratio of -26.94 and a beta of 1.46. The stock has a fifty day moving average price of $47.31 and a 200-day moving average price of $52.96.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, topping the consensus estimate of ($0.34) by $0.08. The company had revenue of $1.47 billion for the quarter, compared to analysts’ expectations 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 for the quarter was up 8.3% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.41) earnings per share. Research analysts anticipate 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 outstanding shares. This buyback authorization allows the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On Roblox

Several institutional investors and hedge funds have recently modified their holdings of RBLX. Livforsakringsbolaget Skandia Omsesidigt purchased a new position in shares of Roblox in the 2nd quarter worth about $201,000. Public Employees Retirement System of Ohio bought a new stake in Roblox during the 2nd quarter valued at about $9,846,000. Kinetic Partners Management LP purchased a new position in Roblox in the second quarter worth about $6,569,000. S&CO Inc. bought a new position in shares of Roblox in the second quarter worth approximately $921,000. Finally, Stonekeep Investments LLC grew its holdings in shares of Roblox by 2.4% during the second quarter. Stonekeep Investments LLC now owns 9,070 shares of the company’s stock valued at $493,000 after buying an additional 213 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

RBLX has been the subject of several research reports. Morgan Stanley decreased their price target on shares of Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research note on Friday, July 31st. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a research note on Wednesday, June 24th. Canaccord Genuity Group set a $58.00 price objective on shares of Roblox in a report on Friday, July 31st. Piper Sandler reaffirmed a “neutral” rating and set a $47.00 target price (down from $50.00) on shares of Roblox in a research note on Friday, July 31st. Finally, Wells Fargo & Company set a $46.00 target price on shares of Roblox in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Roblox currently has a consensus rating of “Hold” and a consensus price target of $60.89.

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.