Matthew Kaufman Sells 14,904 Shares of Roblox (NYSE:RBLX) Stock

Roblox Corporation (NYSE:RBLX) insider Matthew Kaufman sold 14,904 shares of the firm’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $565,755.84. Following the transaction, the insider directly owned 335,060 shares in the company, valued at approximately $12,718,877.60. The trade was a 4.26% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Stock Up 1.0%

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

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

Roblox announced that its Board of Directors has authorized a share buyback plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on RBLX. TD Cowen cut their target price on shares of Roblox from $49.00 to $40.00 and set a “hold” rating on the stock in a report on Friday, July 31st. Seaport Research Partners downgraded shares of Roblox to a “neutral” rating in a research report on Monday, June 29th. Oppenheimer decreased their price target on shares of Roblox from $82.00 to $50.00 and set an “outperform” rating for the company in a research note on Tuesday, August 4th. Benchmark downgraded shares of Roblox from a “hold” rating to a “sell” rating and set a $33.00 price objective on the stock. in a research report on Friday, July 31st. Finally, Barclays dropped their price objective on shares of Roblox from $60.00 to $47.00 and set an “equal weight” rating on the stock in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $60.89.

Roblox News Roundup

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

Hedge Funds Weigh In On Roblox

Large investors have recently modified their holdings of the business. California State Teachers Retirement System lifted its holdings in shares of Roblox by 5,370.1% in the 2nd quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after buying an additional 48,541,681 shares during the period. Readystate Asset Management LP boosted its stake in shares of Roblox by 685.8% in the second quarter. Readystate Asset Management LP now owns 377,201 shares of the company’s stock valued at $20,512,000 after buying an additional 329,201 shares in the last quarter. HB Wealth Management LLC boosted its stake in shares of Roblox by 24.5% in the second quarter. HB Wealth Management LLC now owns 19,542 shares of the company’s stock valued at $1,063,000 after buying an additional 3,844 shares in the last quarter. Saudi Central Bank grew its holdings in Roblox by 91.6% during the second quarter. Saudi Central Bank now owns 41,683 shares of the company’s stock worth $2,267,000 after acquiring an additional 19,929 shares during the period. Finally, Angeles Wealth Management LLC acquired a new position in Roblox during the second quarter worth $915,000. 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.