ARK Investment Management LLC Trims Stock Position in Roblox Corporation (NYSE:RBLX)

Key Points

• ARK Investment Management LLC reduced its holdings in Roblox Corporation by 10.6%, selling over 1 million shares, leaving it with 9,071,978 shares, representing about 5.2% of its total assets.
• Roblox reported a quarterly loss of ($0.32) EPS, beating estimates, but its revenue of $1.04 billion fell short of analyst predictions of $1.14 billion.
• Insider selling was significant, with CEO David Baszucki selling 1,375,002 shares for approximately $99.26 million, indicating a drop of 86.10% in his ownership stake.

ARK Investment Management LLC trimmed its position in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 10.6% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,071,978 shares of the company's stock after selling 1,070,573 shares during the period. Roblox makes up approximately 5.2% of ARK Investment Management LLC's holdings, making the stock its 4th biggest holding. ARK Investment Management LLC owned approximately 1.44% of Roblox worth $528,806,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of RBLX. Thrivent Financial for Lutherans purchased a new stake in shares of Roblox during the 4th quarter valued at about $229,000. Teacher Retirement System of Texas bought a new stake in Roblox during the fourth quarter worth approximately $259,000. Sei Investments Co. raised its position in Roblox by 97.5% during the fourth quarter. Sei Investments Co. now owns 256,120 shares of the company's stock valued at $14,819,000 after purchasing an additional 126,413 shares during the period. Korea Investment CORP lifted its stake in shares of Roblox by 372.6% in the 4th quarter. Korea Investment CORP now owns 312,006 shares of the company's stock valued at $18,053,000 after purchasing an additional 245,982 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. boosted its holdings in shares of Roblox by 8.3% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 338,874 shares of the company's stock worth $20,492,000 after purchasing an additional 26,024 shares during the period. 94.46% of the stock is currently owned by institutional investors.

Roblox Stock Up 0.6%

NYSE:RBLX opened at $118.79 on Friday. The company has a debt-to-equity ratio of 3.39, a current ratio of 1.02 and a quick ratio of 1.02. Roblox Corporation has a 1-year low of $35.30 and a 1-year high of $127.99. The company has a 50-day moving average of $100.68 and a 200 day moving average of $76.37. The firm has a market cap of $80.57 billion, a PE ratio of -88.65 and a beta of 1.60.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, May 1st. The company reported ($0.32) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.09. Roblox had a negative net margin of 22.94% and a negative return on equity of 442.68%. The business had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.14 billion. During the same quarter in the previous year, the business posted ($0.43) EPS. The company's quarterly revenue was up 30.6% compared to the same quarter last year. As a group, research analysts anticipate that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

RBLX has been the topic of several recent research reports. Canaccord Genuity Group increased their price target on Roblox from $80.00 to $84.00 and gave the company a "buy" rating in a report on Friday, May 2nd. Bank of America increased their target price on shares of Roblox from $86.00 to $103.00 and gave the company a "buy" rating in a research note on Thursday, June 5th. Wells Fargo & Company raised their target price on shares of Roblox from $78.00 to $116.00 and gave the stock an "overweight" rating in a report on Friday, June 27th. The Goldman Sachs Group upped their price target on shares of Roblox from $63.00 to $80.00 and gave the company a "neutral" rating in a report on Wednesday, May 14th. Finally, Barclays raised their price objective on shares of Roblox from $46.00 to $62.00 and gave the stock an "equal weight" rating in a research note on Friday, May 2nd. One equities research analyst has rated the stock with a sell rating, four have assigned a hold rating and nineteen have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $95.95.

Insider Buying and Selling

In other Roblox news, CEO David Baszucki sold 1,375,002 shares of the stock in a transaction on Monday, May 5th. The stock was sold at an average price of $72.19, for a total transaction of $99,261,394.38. Following the sale, the chief executive officer owned 221,983 shares of the company's stock, valued at approximately $16,024,952.77. This trade represents a 86.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold a total of 6,651,690 shares of company stock valued at $593,440,562 over the last ninety days. Insiders own 12.92% of the company's stock.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.

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