Baillie Gifford & Co. Sells 1,753,075 Shares of Roblox Corporation $RBLX

Key Points

• Baillie Gifford trimmed its Roblox stake by 7.5%, selling 1,753,075 shares and ending the quarter with 21,543,528 shares (about 3.29% of Roblox, worth ~$1.746 billion), making Roblox roughly 1.5% of Baillie Gifford’s portfolio and its 16th largest holding.
• Analysts hold a consensus "Moderate Buy" on RBLX with an average target of $116.76, well above the recent share price (~$55.55), though several firms have recently cut targets (Goldman, Needham, Canaccord).
• Roblox reported Q results showing EPS of ($0.45) (better than estimate) and revenue of $1.42B — up 122.6% YoY but below the ~$2.08B consensus — and remains unprofitable with negative margins; insiders have sold ~527,018 shares over the past three months.

Baillie Gifford & Co. lessened its holdings in Roblox Corporation (NYSE:RBLX - Free Report) by 7.5% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 21,543,528 shares of the company's stock after selling 1,753,075 shares during the quarter. Roblox accounts for approximately 1.5% of Baillie Gifford & Co.'s investment portfolio, making the stock its 16th biggest position. Baillie Gifford & Co. owned about 3.29% of Roblox worth $1,745,672,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. National Pension Service lifted its position in Roblox by 7.3% during the third quarter. National Pension Service now owns 1,697,820 shares of the company's stock worth $235,182,000 after purchasing an additional 115,096 shares during the period. SG Americas Securities LLC lifted its position in Roblox by 298.4% during the third quarter. SG Americas Securities LLC now owns 329,317 shares of the company's stock worth $45,617,000 after purchasing an additional 246,652 shares during the period. Yarbrough Capital LLC lifted its position in Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company's stock worth $4,646,000 after purchasing an additional 53,780 shares during the period. Cypress Wealth Services LLC bought a new stake in Roblox during the fourth quarter worth about $2,373,000. Finally, Tokio Marine Asset Management Co. Ltd. bought a new stake in Roblox during the third quarter worth about $2,895,000. Institutional investors own 94.46% of the company's stock.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on RBLX. The Goldman Sachs Group cut their price objective on shares of Roblox from $180.00 to $140.00 and set a "buy" rating for the company in a research report on Friday, February 6th. DA Davidson began coverage on shares of Roblox in a research report on Wednesday, March 4th. They set a "neutral" rating and a $65.00 price objective for the company. Needham & Company LLC cut their price objective on shares of Roblox from $159.00 to $105.00 and set a "buy" rating for the company in a research report on Friday, February 6th. Wolfe Research set a $100.00 price objective on shares of Roblox in a research report on Monday, January 5th. Finally, Canaccord Genuity Group lowered their target price on Roblox from $160.00 to $140.00 and set a "buy" rating for the company in a research note on Tuesday, February 3rd. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, Roblox has a consensus rating of "Moderate Buy" and an average target price of $116.76.

Roblox Stock Down 0.1%

Shares of NYSE RBLX opened at $55.55 on Monday. The company has a current ratio of 0.96, a quick ratio of 0.96 and a debt-to-equity ratio of 2.65. The company has a market cap of $36.75 billion, a price-to-earnings ratio of -35.84 and a beta of 1.67. Roblox Corporation has a 12 month low of $51.23 and a 12 month high of $150.59. The stock has a 50-day moving average price of $61.48 and a two-hundred day moving average price of $86.65.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, February 5th. The company reported ($0.45) EPS for the quarter, topping the consensus estimate of ($0.49) by $0.04. Roblox had a negative return on equity of 304.42% and a negative net margin of 21.78%.The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. During the same quarter in the previous year, the firm earned ($0.33) earnings per share. The business's quarterly revenue was up 122.6% on a year-over-year basis. As a group, analysts forecast that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, Director Gregory Baszucki sold 16,666 shares of the company's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $57.95, for a total value of $965,794.70. Following the completion of the transaction, the director owned 1,302,834 shares of the company's stock, valued at $75,499,230.30. This represents a 1.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Arvind Chakravarthy sold 40,646 shares of the company's stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $67.23, for a total value of $2,732,630.58. The SEC filing for this sale provides additional information. Insiders have sold a total of 527,018 shares of company stock valued at $37,145,491 over the last three months. Insiders own 12.92% of the company's stock.

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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