Capital International Inc. CA Buys 111,379 Shares of Roblox Corporation $RBLX

Key Points

• Capital International Inc. CA boosted its Roblox stake by 54.8% in the fourth quarter, buying 111,379 more shares and bringing its total holding to 314,617 shares worth about $25.5 million.
• Roblox reported quarterly earnings of -$0.35 per share, beating analyst expectations, while revenue rose 43.4% year over year to $1.44 billion despite missing consensus revenue estimates.
• The company’s board approved a $3 billion share repurchase plan, while recent insider selling and a mixed analyst outlook left Wall Street with a consensus Hold rating.

Capital International Inc. CA increased its stake in Roblox Corporation (NYSE:RBLX - Free Report) by 54.8% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 314,617 shares of the company's stock after acquiring an additional 111,379 shares during the period. Capital International Inc. CA's holdings in Roblox were worth $25,493,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Baird Financial Group Inc. raised its position in Roblox by 1.4% during the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock valued at $767,000 after purchasing an additional 102 shares during the last quarter. Sunbelt Securities Inc. raised its position in Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after purchasing an additional 105 shares during the last quarter. Brown Brothers Harriman & Co. raised its position in Roblox by 2.8% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock valued at $560,000 after purchasing an additional 110 shares during the last quarter. Westpac Banking Corp raised its position in Roblox by 0.6% during the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company's stock valued at $2,776,000 after purchasing an additional 115 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in Roblox by 1.3% during the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company's stock valued at $1,091,000 after purchasing an additional 138 shares during the last quarter. Institutional investors own 94.46% of the company's stock.

Roblox Stock Performance

Roblox stock opened at $41.92 on Monday. 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 company has a market capitalization of $28.15 billion, a P/E ratio of -26.53 and a beta of 1.44. The stock's 50 day moving average is $51.24 and its 200 day moving average is $67.20. Roblox Corporation has a twelve month low of $40.15 and a twelve month high of $150.59.

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

Roblox announced that its Board of Directors has approved a stock repurchase plan 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 plans are often an indication that the company's management believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Matthew D. Kaufman sold 14,356 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider owned 349,964 shares in the company, valued at $15,842,870.28. This represents a 3.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 5,460 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $46.40, for a total value of $253,344.00. Following the completion of the sale, the insider owned 432,738 shares in the company, valued at $20,079,043.20. The trade was a 1.25% decrease in their position. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 183,471 shares of company stock worth $8,930,068 over the last three months. Corporate insiders own 10.05% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on RBLX. Morgan Stanley reaffirmed an "overweight" rating and set a $62.00 price target on shares of Roblox in a research report on Friday, May 1st. Wall Street Zen lowered Roblox from a "hold" rating to a "sell" rating in a research report on Saturday, May 30th. DA Davidson lowered their price target on Roblox from $47.50 to $45.00 and set a "neutral" rating for the company in a research report on Friday, May 22nd. BTIG Research lowered Roblox from a "buy" rating to a "neutral" rating in a research report on Friday, May 1st. Finally, Jefferies Financial Group lowered Roblox from a "hold" rating to a "hold" rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $87.07.

Roblox Company 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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