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

Roblox Corporation (NYSE:RBLX) insider Mark Reinstra sold 17,934 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $680,774.64. Following the completion of the sale, the insider directly owned 398,064 shares of the company’s stock, valued at $15,110,509.44. This represents a 4.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 transaction of $250,000.00.
• On Monday, July 6th, Mark Reinstra sold 4,512 shares of Roblox stock. The shares were 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 stock was sold at an average price of $41.71, for a total value of $249,342.38.

Roblox Price Performance

Roblox stock opened at $38.70 on Tuesday. The stock has a market cap of $25.93 billion, a price-to-earnings ratio of -27.06 and a beta of 1.46. The company has a debt-to-equity ratio of 7.82, a current ratio of 0.82 and a quick ratio of 0.82. Roblox Corporation has a 1 year low of $33.88 and a 1 year high of $142.00. The firm has a 50-day moving average of $46.97 and a two-hundred day moving average of $52.38.

Roblox (NYSE:RBLX) last issued its earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping analysts’ consensus estimates of ($0.34) by $0.08. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The company’s revenue for the quarter was up 8.3% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.41) EPS. On average, research analysts forecast that Roblox Corporation will post -1.39 earnings per share for the current year.

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

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RBLX. Deutsche Bank Aktiengesellschaft lowered shares of Roblox from a “buy” rating to a “hold” rating and cut their price objective for the company from $56.00 to $38.00 in a report on Friday, July 31st. Benchmark lowered shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price target on the stock. in a report on Friday, July 31st. Citigroup reduced their target price on Roblox from $70.00 to $60.00 and set a “buy” rating on the stock in a research report on Monday, August 3rd. TD Cowen lowered their price objective on shares of Roblox from $49.00 to $40.00 and set a “hold” rating for the company in a research note on Friday, July 31st. Finally, Wall Street Zen raised shares of Roblox from a “sell” rating to a “hold” rating in a report on Saturday, July 18th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $60.89.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Neutral Sentiment: CEO David Baszucki, CFO Naveen K. Chopra, CAO Amy Marie Rawlings, and insiders Mark Reinstra, Sean Jack Buckley, and Matthew D. Kaufman collectively sold 113,583 shares worth approximately $4.31 million on August 20, at prices near $37.96–$37.97. Each filing stated that the shares were sold to cover tax withholding obligations tied to vested equity awards, limiting the negative signal typically associated with open-market insider selling. Roblox insider transaction filings
• Neutral Sentiment: Although the sales reduced each insider’s individual holdings by roughly 4% to 7%, the executives and insiders continued to retain substantial positions in Roblox. The filings therefore provide limited evidence of declining confidence in the company’s outlook. Roblox CFO transaction filing

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Sunbelt Securities Inc. increased its holdings 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. Horizon Investments LLC lifted its stake in Roblox by 2,636.4% during the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company’s stock worth $42,000 after acquiring an additional 290 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new position in Roblox during the 4th quarter worth about $27,000. GW&K Investment Management LLC boosted its holdings in Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company’s stock valued at $30,000 after acquiring an additional 161 shares during the period. Finally, Zions Bancorporation National Association UT purchased a new position in Roblox during the 4th quarter valued at about $32,000. Hedge funds and other institutional investors own 94.46% of the company’s stock.

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.