California State Teachers Retirement System Buys 48,541,681 Shares of Roblox Corporation $RBLX

Key Points

• California State Teachers Retirement System increased its Roblox stake by 48.5 million shares, a 5,370.1% rise, bringing its ownership to 49.45 million shares, or 7.38% of the company, valued at approximately $2.69 billion.
• Roblox reported a quarterly loss of $0.26 per share, beating estimates, while revenue of $1.47 billion fell short of expectations but grew 8.3% year over year. The company also authorized a $3 billion share-buyback program.
• RBLX shares opened at $44.84, well below the 52-week high of $142.00. Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $59.21, while insiders have sold $7.54 million worth of shares over the past 90 days.

California State Teachers Retirement System lifted its stake in Roblox Corporation (NYSE:RBLX - Free Report) by 5,370.1% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 49,445,613 shares of the company's stock after acquiring an additional 48,541,681 shares during the period. California State Teachers Retirement System owned 7.38% of Roblox worth $2,688,852,000 at the end of the most recent quarter.

Several other large investors have also recently made changes to their positions in RBLX. Hanson & Doremus Investment Management bought a new stake in Roblox during the first quarter valued at about $25,000. Fideuram Asset Management Ireland dac bought a new position in Roblox in the fourth quarter worth about $27,000. Basecamp Wealth Advisors LLC raised its holdings in Roblox by 98.8% in the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock worth $29,000 after purchasing an additional 252 shares in the last quarter. GW&K Investment Management LLC lifted its position in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after buying an additional 161 shares during the last quarter. Finally, Root Financial Partners LLC lifted its position in shares of Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after buying an additional 283 shares during the last quarter. 94.46% of the stock is owned by institutional investors.

Insider Activity at Roblox

In other news, insider Mark Reinstra sold 5,773 shares of Roblox stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $44.80, for a total transaction of $258,630.40. Following the completion of the sale, the insider directly owned 392,291 shares in the company, valued at approximately $17,574,636.80. The trade was a 1.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 52,568 shares of the business's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the sale, the chief executive officer directly owned 799,646 shares in the company, valued at $30,354,562.16. This trade represents a 6.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 185,236 shares of company stock worth $7,538,642 in the last 90 days. 10.05% of the stock is owned by insiders.

Roblox Price Performance

Shares of RBLX stock opened at $44.84 on Friday. Roblox Corporation has a fifty-two week low of $33.88 and a fifty-two week high of $142.00. The firm has a market capitalization of $30.05 billion, a price-to-earnings ratio of -31.36 and a beta of 1.47. 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 stock's 50-day simple moving average is $44.56 and its 200-day simple moving average is $50.21.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 17.60% and a negative return on equity of 292.85%. The company's revenue for the quarter was up 8.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.41) earnings per share. As a group, equities analysts forecast that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

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

Analyst Ratings Changes

A number of research analysts have recently issued reports on RBLX shares. Wells Fargo & Company set a $46.00 price objective on shares of Roblox in a research report on Monday, August 3rd. Seaport Research Partners cut shares of Roblox to a "neutral" rating in a research report on Monday, June 29th. Benchmark downgraded shares of Roblox from a "hold" rating to a "sell" rating and set a $33.00 target price for the company. in a research note on Friday, July 31st. Citigroup lowered their target price on shares of Roblox from $70.00 to $60.00 and set a "buy" rating for the company in a research note on Monday, August 3rd. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $47.00 price target (down from $50.00) on shares of Roblox in a report on Friday, July 31st. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $59.21.

Roblox Company Profile

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.