Capital World Investors Sells 854,676 Shares of Roblox Corporation $RBLX

Key Points

• Capital World Investors trimmed its Roblox stake by 6.6% in the fourth quarter, selling 854,676 shares and ending with 12.14 million shares valued at about $983.5 million.
• Roblox reported quarterly earnings of -$0.35 per share, beating estimates, but revenue of $1.44 billion came in below expectations even as it rose 43.4% year over year.
• The company authorized a $3 billion share repurchase plan, while analysts remain cautious overall with a consensus rating of “Hold” and several firms recently cutting price targets.

Capital World Investors lowered its position in Roblox Corporation (NYSE:RBLX - Free Report) by 6.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 12,136,732 shares of the company's stock after selling 854,676 shares during the period. Capital World Investors owned about 1.85% of Roblox worth $983,461,000 at the end of the most recent reporting period.

Several other large investors also recently modified their holdings of the company. Vanguard Group Inc. increased its position in Roblox by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company's stock worth $5,142,065,000 after buying an additional 1,020,786 shares in the last quarter. Capital International Investors increased its position in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after buying an additional 2,184,439 shares in the last quarter. State Street Corp increased its position in Roblox by 11.0% in the third quarter. State Street Corp now owns 13,369,844 shares of the company's stock worth $1,851,991,000 after buying an additional 1,326,575 shares in the last quarter. Geode Capital Management LLC increased its position in Roblox by 4.7% in the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock worth $988,002,000 after buying an additional 547,103 shares in the last quarter. Finally, AQR Capital Management LLC increased its position in Roblox by 7.4% in the third quarter. AQR Capital Management LLC now owns 9,697,538 shares of the company's stock worth $1,310,719,000 after buying an additional 665,127 shares in the last quarter. Institutional investors own 94.46% of the company's stock.

Roblox Trading Up 0.2%

Shares of Roblox stock opened at $41.92 on Monday. The firm has a market cap of $28.15 billion, a price-to-earnings ratio of -26.53 and a beta of 1.44. The business has a 50-day moving average price of $51.24 and a 200-day moving average price of $67.20. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. 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 issued its quarterly earnings data 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. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The company had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.74 billion. During the same period in the previous year, the firm posted ($0.32) earnings per share. The firm's revenue for the quarter was up 43.4% on a year-over-year basis. Equities research analysts anticipate that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox declared that its board has initiated a stock repurchase plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 9.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Insider Transactions at Roblox

In other Roblox news, insider Mark Reinstra sold 5,460 shares of the company's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $46.40, for a total transaction 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. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, insider Matthew D. Kaufman sold 14,356 shares of the company's stock in a transaction 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 transaction, the insider directly owned 349,964 shares in the company, valued at approximately $15,842,870.28. The trade was a 3.94% decrease in their ownership of the stock. 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. Insiders have sold 183,471 shares of company stock valued at $8,930,068 in the last ninety days. Corporate insiders own 10.05% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on RBLX shares. TD Cowen upgraded Roblox from a "sell" rating to a "hold" rating and reduced their price target for the stock from $54.00 to $49.00 in a research report on Friday, May 1st. Bank of America cut Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target for the company. in a research report on Friday, May 1st. UBS Group reduced their price target on Roblox from $74.00 to $49.00 and set a "neutral" rating for the company in a research report on Friday, May 1st. Weiss Ratings reissued a "sell (e+)" rating on shares of Roblox in a report on Friday, March 27th. Finally, Barclays decreased their price target on Roblox from $115.00 to $60.00 and set an "equal weight" rating on the stock in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Roblox has a consensus rating of "Hold" and a consensus target price 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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