Roblox (NYSE:RBLX) Insider Sean Jack Buckley Sells 5,666 Shares

Roblox Corporation (NYSE:RBLX) insider Sean Jack Buckley sold 5,666 shares of the firm’s stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $256,499.82. Following the sale, the insider directly owned 101,885 shares of the company’s stock, valued at approximately $4,612,333.95. This represents a 5.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Stock Performance

Shares of Roblox stock traded up $2.09 during trading hours on Friday, hitting $48.23. 10,126,707 shares of the company’s stock traded hands, compared to its average volume of 11,949,403. Roblox Corporation has a 12-month low of $40.15 and a 12-month high of $150.59. The stock has a market capitalization of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50. The company has a fifty day simple moving average of $53.81 and a 200-day simple moving average of $71.69. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89.

Roblox (NYSE:RBLX) last announced its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating 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 analyst estimates of $1.74 billion. During the same period last year, the firm posted ($0.32) EPS. The business’s revenue was up 43.4% compared to the same quarter last year. Equities research analysts anticipate 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 permits the company to buyback $3.00 billion in shares. This buyback authorization permits the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on RBLX shares. Wolfe Research started coverage on Roblox in a research note on Friday, May 1st. They set an “outperform” rating for the company. BTIG Research downgraded Roblox from a “buy” rating to a “neutral” rating in a research report on Friday, May 1st. TD Cowen upgraded Roblox from a “sell” rating to a “hold” rating and dropped their price target for the company from $54.00 to $49.00 in a research report on Friday, May 1st. Canaccord Genuity Group dropped their price target on Roblox from $140.00 to $80.00 and set a “buy” rating for the company in a research report on Friday, May 1st. Finally, Roth Mkm set a $65.00 price target on Roblox in a research report on Tuesday, May 5th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $87.07.

Hedge Funds Weigh In On Roblox

A number of large investors have recently modified their holdings of RBLX. Norges Bank purchased a new position in shares of Roblox during the 4th quarter valued at about $435,424,000. Vanguard Group Inc. raised its holdings in shares of Roblox by 5.6% during the 3rd quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company’s stock valued at $8,648,911,000 after buying an additional 3,284,073 shares in the last quarter. SRS Investment Management LLC purchased a new position in shares of Roblox during the 4th quarter valued at about $238,065,000. Amundi raised its holdings in shares of Roblox by 83.7% during the 1st quarter. Amundi now owns 5,774,151 shares of the company’s stock valued at $326,586,000 after buying an additional 2,631,074 shares in the last quarter. Finally, Capital International Investors raised its holdings 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 valued at $2,589,282,000 after buying an additional 2,184,439 shares in the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

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.