Mark Reinstra Sells 17,934 Shares of Roblox (NYSE:RBLX) Stock

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 17,934 shares of Roblox stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the transaction, the insider owned 398,064 shares of the company’s stock, valued at $15,110,509.44. The trade was a 4.31% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 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, August 19th, Mark Reinstra sold 6,250 shares of Roblox stock. The stock was sold at an average price of $40.00, for a total value of $250,000.00.
• 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 Up 1.0%

Shares of RBLX stock opened at $39.15 on Wednesday. Roblox Corporation has a twelve month low of $33.88 and a twelve month high of $142.00. The stock has a market cap of $26.23 billion, a P/E ratio of -27.38 and a beta of 1.46. The stock has a 50 day moving average of $46.77 and a 200 day moving average of $52.21. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82.

Roblox (NYSE:RBLX) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping the consensus estimate of ($0.34) by $0.08. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The business’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.41) EPS. As a group, sell-side analysts expect that Roblox Corporation will post -1.39 EPS for the current year.

Roblox declared that its board has authorized a stock repurchase plan on Tuesday, May 19th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the company to repurchase up to 9.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Institutional Investors Weigh In On Roblox

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. California State Teachers Retirement System lifted its holdings in Roblox by 5,370.1% during the second quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after purchasing an additional 48,541,681 shares in the last quarter. Norges Bank acquired a new stake in shares of Roblox in the fourth quarter valued at about $435,424,000. SRS Investment Management LLC purchased a new stake in shares of Roblox during the fourth quarter worth about $238,065,000. Amundi increased its stake 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 in the last quarter. Finally, Capital International Investors raised its position in shares of Roblox by 7.3% during the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company’s stock worth $2,589,282,000 after purchasing an additional 2,184,439 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company’s stock.

Roblox News Summary

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Short interest fell 42.4% to 13.88 million shares as of August 14, down from 24.11 million shares on July 30. Only about 2.3% of Roblox’s outstanding shares are now sold short, and the short-interest ratio is 0.8 days. The reduction suggests that bearish investors have been covering positions, potentially reducing near-term selling pressure on RBLX. Roblox short interest data
• Neutral Sentiment: CEO David Baszucki, CFO Naveen Chopra, CAO Amy Rawlings, and other insiders collectively sold shares worth roughly $4.31 million in transactions dated August 20, with additional shares sold by Sean Jack Buckley on August 24. Most filings said the sales were made to cover tax obligations associated with equity-award vesting, rather than discretionary open-market selling. Roblox insider transaction filings
• Neutral Sentiment: Although the transactions reduced individual insider holdings by approximately 4% to 7%, the executives and directors continued to own substantial positions. As a result, the sales offer limited evidence of deteriorating management confidence and are unlikely to be a major catalyst by themselves. Sean Jack Buckley insider filing

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on RBLX shares. UBS Group set a $33.00 price objective on shares of Roblox in a report on Friday, July 31st. Piper Sandler reissued 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. Seaport Research Partners cut Roblox to a “neutral” rating in a research report on Monday, June 29th. BTIG Research lowered Roblox from a “neutral” rating to a “sell” rating and set a $30.00 price target for the company. in a research note on Friday, July 31st. Finally, B. Riley Financial cut their price target on Roblox from $80.00 to $45.00 and set a “buy” rating for the company in a research note on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company 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.