Avory & Company LLC Purchases New Holdings in Roblox Corporation $RBLX

Key Points

• Avory & Company LLC disclosed a new first-quarter stake in Roblox, buying 21,653 shares valued at about $1.23 million. The position accounts for 1.6% of the firm’s portfolio.
• Roblox continues to attract heavy institutional interest, with hedge funds and other investors owning 94.46% of the stock. Several large firms recently added or expanded positions, including Norges Bank, Capital International Investors, and ValueAct Holdings.
• Insiders have been selling shares, including CEO David Baszucki and insider Mark Reinstra, though the sales were tied to tax withholding on equity awards. Meanwhile, analysts mostly remain positive, with Roblox carrying a Moderate Buy consensus and an average price target of $85.48.

Avory & Company LLC acquired a new stake in shares of Roblox Corporation (NYSE:RBLX - Free Report) in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 21,653 shares of the company's stock, valued at approximately $1,225,000. Roblox comprises 1.6% of Avory & Company LLC's portfolio, making the stock its 17th largest holding.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Norges Bank acquired a new stake in shares of Roblox during the fourth quarter worth $435,424,000. SRS Investment Management LLC acquired a new position in Roblox in the 4th quarter valued at $238,065,000. Capital International Investors increased its stake in Roblox by 7.3% in 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 during the period. ValueAct Holdings L.P. increased its stake in Roblox by 39.5% in the 4th quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company's stock valued at $484,221,000 after buying an additional 1,692,600 shares during the period. Finally, BNP Paribas Financial Markets raised its position in Roblox by 99.5% during the 4th 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 during the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

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Insider Activity

In related news, insider Mark Reinstra sold 18,653 shares of the company's stock in a transaction that occurred on Monday, April 13th. The stock was sold at an average price of $57.94, for a total value of $1,080,754.82. Following the sale, the insider owned 455,473 shares of the company's stock, valued at approximately $26,390,105.62. This represents a 3.93% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO David Baszucki sold 50,628 shares of the stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total value of $2,292,435.84. Following the sale, the chief executive officer owned 852,214 shares in the company, valued at approximately $38,588,249.92. This trade represents a 5.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 189,449 shares of company stock worth $9,175,077. 10.05% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. Wells Fargo & Company raised their target price on shares of Roblox from $55.00 to $56.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 30th. Cantor Fitzgerald initiated coverage on shares of Roblox in a report on Monday, June 29th. They set an "overweight" rating for the company. Raymond James Financial began coverage on shares of Roblox in a research report on Monday, June 29th. They issued a "market perform" rating for the company. UBS Group initiated coverage on Roblox in a report on Monday, June 29th. They issued a "buy" rating on the stock. Finally, Deutsche Bank Aktiengesellschaft assumed coverage on Roblox in a research note on Monday, June 29th. They set a "buy" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Roblox presently has a consensus rating of "Moderate Buy" and an average target price of $85.48.

Roblox Price Performance

Shares of NYSE RBLX opened at $57.04 on Tuesday. The stock has a market cap of $38.31 billion, a price-to-earnings ratio of -36.10 and a beta of 1.41. Roblox Corporation has a 52 week low of $40.15 and a 52 week high of $150.59. The company's 50-day moving average price is $47.68 and its 200 day moving average price is $60.63. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to analysts' expectations of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm's quarterly revenue was up 43.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.32) earnings per share. As a group, research analysts forecast that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

Roblox announced that its board has approved a share repurchase program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to buy up to 9.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's management believes its stock is undervalued.

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.

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