Mark Reinstra Sells 5,460 Shares of Roblox (NYSE:RBLX) Stock

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 5,460 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $46.40, for a total value of $253,344.00. Following the completion of the sale, the insider owned 432,738 shares in the company, valued at approximately $20,079,043.20. This represents a 1.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• On Wednesday, May 20th, Mark Reinstra sold 17,275 shares of Roblox stock. The stock was sold at an average price of $45.28, for a total value of $782,212.00.
• On Monday, April 13th, Mark Reinstra sold 18,653 shares of Roblox stock. The stock was sold at an average price of $57.94, for a total value of $1,080,754.82.

Roblox Trading Up 4.5%

Roblox stock opened at $48.23 on Friday. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. Roblox Corporation has a 12 month low of $40.15 and a 12 month high of $150.59. The stock’s 50 day simple moving average is $53.56 and its two-hundred day simple moving average is $71.53. The firm has a market cap of $32.39 billion, a PE ratio of -30.53 and a beta of 1.50.

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

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

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Baird Financial Group Inc. raised its stake in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company’s stock valued at $767,000 after purchasing an additional 102 shares during the last quarter. Sunbelt Securities Inc. raised its stake in Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company’s stock valued at $39,000 after purchasing an additional 105 shares during the last quarter. Brown Brothers Harriman & Co. raised its stake in Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company’s stock valued at $560,000 after purchasing an additional 110 shares during the last quarter. Westpac Banking Corp raised its stake in Roblox by 0.6% in the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company’s stock valued at $2,776,000 after purchasing an additional 115 shares during the last quarter. Finally, NewEdge Advisors LLC raised its stake in Roblox by 1.3% in the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company’s stock valued at $1,091,000 after purchasing an additional 138 shares during the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: One recent bullish view argues Roblox is evolving into an AI-enabled entertainment platform, with creator tools helping boost content production and user engagement, which could support long-term bookings and monetization. Roblox: The Scarce Entertainment Asset In An AI-Abundant World
• Neutral Sentiment: Analysts and commentators also noted that Roblox remains a debated story, with some saying the investment case depends on assumptions that may be hard to prove near term. Roblox: Investment Case Relies On Unreliable Assumptions
• Negative Sentiment: CEO David Baszucki sold 50,628 shares, CFO Naveen K. Chopra sold 16,863 shares, and several other insiders also sold shares in filings dated May 20–21. While the company said these were largely to cover tax withholding from vesting awards, the cluster of sales can still weigh on sentiment.
• Negative Sentiment: Additional commentary flagged near-term growth headwinds from age verification and moderation-related changes, which have softened DAU, engagement, and bookings trends even as Roblox works on new kids’ accounts and broader 18+ monetization. Roblox: Reset Triggers Robust 18+ Cohort Monetization Opportunities

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on RBLX shares. Morgan Stanley reaffirmed an “overweight” rating and set a $62.00 target price on shares of Roblox in a research note on Friday, May 1st. Weiss Ratings reissued a “sell (e+)” rating on shares of Roblox in a report on Friday, March 27th. TD Cowen upgraded shares of Roblox from a “sell” rating to a “hold” rating and reduced their price objective for the stock from $54.00 to $49.00 in a research report on Friday, May 1st. Oppenheimer began coverage on shares of Roblox in a research report on Friday, May 1st. They set an “outperform” rating for the company. Finally, Bank of America cut shares of Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price objective for the company. in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock 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.