Roblox (NYSE:RBLX) Insider Matthew Kaufman Sells 14,356 Shares

Roblox Corporation (NYSE:RBLX) insider Matthew Kaufman sold 14,356 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider directly owned 349,964 shares of the company’s stock, valued at approximately $15,842,870.28. This represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Stock Performance

Shares of NYSE RBLX traded up $2.09 during mid-day trading on Friday, hitting $48.23. 10,126,707 shares of the company were exchanged, compared to its average volume of 11,949,403. 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 50 day simple moving average of $53.81 and a 200-day simple moving average of $71.69. Roblox Corporation has a 1-year low of $40.15 and a 1-year high of $150.59. The firm has a market cap of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50.

Roblox (NYSE:RBLX) last issued its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share 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 firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same period last year, the company earned ($0.32) earnings per share. The company’s revenue for the quarter was up 43.4% on a year-over-year basis. On average, sell-side analysts forecast that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox announced that its board has approved a share repurchase plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in RBLX. NewEdge Advisors LLC raised its stake in Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company’s stock valued at $597,000 after purchasing an additional 231 shares during the last quarter. Sivia Capital Partners LLC raised its stake in Roblox by 70.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company’s stock valued at $1,368,000 after purchasing an additional 5,363 shares during the last quarter. CW Advisors LLC acquired a new position in Roblox in the 2nd quarter valued at about $272,000. 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. Finally, WINTON GROUP Ltd acquired a new position in Roblox in the 2nd quarter valued at about $438,000. Institutional investors and hedge funds own 94.46% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the company. Barclays reduced their target price on Roblox from $115.00 to $60.00 and set an “equal weight” rating for the company in a report on Friday, May 1st. JPMorgan Chase & Co. reduced their target price on Roblox from $100.00 to $75.00 and set a “neutral” rating for the company in a report on Friday, February 6th. Canaccord Genuity Group reduced their target price on Roblox from $140.00 to $80.00 and set a “buy” rating for the company in a report on Friday, May 1st. Citigroup cut their price target on Roblox from $90.00 to $70.00 and set a “buy” rating for the company in a research note on Monday, May 4th. Finally, Wedbush downgraded Roblox from a “hold” rating to a “neutral” rating in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target 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.