Insider Selling: Roblox (NYSE:RBLX) CAO Sells 2,895 Shares of Stock

Roblox Corporation (NYSE:RBLX) CAO Amy Marie Rawlings sold 2,895 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.24, for a total value of $130,969.80. Following the completion of the transaction, the chief accounting officer directly owned 35,238 shares of the company’s stock, valued at $1,594,167.12. The trade was a 7.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Price Performance

NYSE RBLX traded up $2.09 during mid-day trading on Friday, hitting $48.23. The stock had a trading volume of 10,126,707 shares, 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 market cap of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50. The company has a 50 day simple moving average of $53.81 and a 200 day simple moving average of $71.69. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45.

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

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

Institutional Investors Weigh In On Roblox

Several hedge funds have recently made changes to their positions in the business. Western Wealth Management LLC acquired a new stake in shares of Roblox during the first quarter worth $33,000. Bull Harbor Capital LLC acquired a new stake in shares of Roblox during the first quarter worth $651,000. Arkadios Wealth Advisors boosted its holdings in shares of Roblox by 195.3% during the first quarter. Arkadios Wealth Advisors now owns 21,008 shares of the company’s stock worth $1,188,000 after purchasing an additional 13,893 shares during the last quarter. Spyglass Capital Management LLC acquired a new stake in shares of Roblox during the first quarter worth $44,116,000. Finally, Amundi boosted its holdings in shares of Roblox by 83.7% during the first quarter. Amundi now owns 5,774,151 shares of the company’s stock worth $326,586,000 after purchasing an additional 2,631,074 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have weighed in on RBLX shares. Bank of America downgraded Roblox from a “buy” rating to a “neutral” rating and set a $48.00 price target for the company. in a research report on Friday, May 1st. Roth Mkm set a $65.00 price target on Roblox in a research report on Tuesday, May 5th. Jefferies Financial Group downgraded Roblox from a “hold” rating to a “hold” rating in a research report on Friday, May 1st. TD Cowen raised Roblox from a “sell” rating to a “hold” rating and dropped their price target for the stock from $54.00 to $49.00 in a research report on Friday, May 1st. Finally, Benchmark reissued a “hold” rating on shares of Roblox in a research report on Monday, February 2nd. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $87.07.

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.