Allen Investment Management LLC Lowers Stock Holdings in Roblox Corporation $RBLX

Key Points

• Allen Investment Management cut its Roblox stake by 14.1% in the fourth quarter, selling 34,911 shares and leaving it with 212,239 shares worth about $17.2 million.
• Roblox reported quarterly EPS of -$0.35, beating expectations, but revenue of $1.44 billion came in below estimates. Revenue still rose 43.4% year over year, and analysts currently expect a full-year EPS loss of 1.4.
• The company’s board authorized a $3 billion stock buyback, allowing repurchases of up to 9.5% of outstanding shares, while insiders also sold stock in recent months and Wall Street maintains a consensus Hold rating.

Allen Investment Management LLC lessened its holdings in Roblox Corporation (NYSE:RBLX - Free Report) by 14.1% in the fourth quarter, according to its most recent filing with the SEC. The institutional investor owned 212,239 shares of the company's stock after selling 34,911 shares during the period. Allen Investment Management LLC's holdings in Roblox were worth $17,198,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Norges Bank bought a new position in shares of Roblox in the fourth quarter worth about $435,424,000. Vanguard Group Inc. lifted its holdings in shares of Roblox by 5.6% in the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company's stock worth $8,648,911,000 after buying an additional 3,284,073 shares in the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Roblox by 99.5% in the fourth quarter. BNP Paribas Financial Markets now owns 3,377,673 shares of the company's stock worth $273,693,000 after buying an additional 1,684,411 shares in the last quarter. State Street Corp boosted its position in shares of Roblox by 11.0% during the third quarter. State Street Corp now owns 13,369,844 shares of the company's stock worth $1,851,991,000 after acquiring an additional 1,326,575 shares during the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in shares of Roblox by 342.6% during the fourth quarter. Assenagon Asset Management S.A. now owns 1,551,456 shares of the company's stock worth $125,714,000 after acquiring an additional 1,200,900 shares during the last quarter. 94.46% of the stock is owned by institutional investors.

Roblox Stock Down 0.3%

Shares of RBLX opened at $47.02 on Tuesday. 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 business has a fifty day moving average of $52.27 and a 200 day moving average of $68.85. The company has a market cap of $31.58 billion, a PE ratio of -29.76 and a beta of 1.44. Roblox Corporation has a 52-week low of $40.15 and a 52-week high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The business had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter in the prior year, the firm posted ($0.32) earnings per share. The business's revenue for the quarter was up 43.4% on a year-over-year basis. On average, sell-side analysts expect that Roblox Corporation will post -1.4 EPS for the current year.

Roblox declared that its Board of Directors has initiated a stock buyback program on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 9.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's board of directors believes its shares are undervalued.

Insider Activity

In related news, insider Matthew D. Kaufman sold 14,356 shares of the firm's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the transaction, the insider owned 349,964 shares of the company's stock, valued at $15,842,870.28. This trade represents a 3.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Jack Buckley sold 4,744 shares of the business's stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $46.36, for a total transaction of $219,931.84. Following the completion of the sale, the insider directly owned 97,141 shares of the company's stock, valued at approximately $4,503,456.76. This trade represents a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 183,471 shares of company stock valued at $8,930,068. Insiders own 10.05% of the company's stock.

Wall Street Analyst Weigh In

RBLX has been the topic of a number of research reports. Oppenheimer initiated coverage on shares of Roblox in a report on Friday, May 1st. They issued an "outperform" rating on the stock. UBS Group dropped their price objective on shares of Roblox from $74.00 to $49.00 and set a "neutral" rating for the company in a report on Friday, May 1st. Barclays reduced their target price on Roblox from $115.00 to $60.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. Benchmark reiterated a "hold" rating on shares of Roblox in a research report on Monday, February 2nd. Finally, Freedom Capital raised Roblox from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 6th. One equities 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 given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $87.07.

Roblox 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.

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