Comerica Bank Sells 108,677 Shares of Roblox Corporation $RBLX

Key Points

• Comerica Bank sharply reduced its Roblox stake by 86.5% in the fourth quarter, selling 108,677 shares and leaving it with 17,013 shares valued at about $1.38 million.
• Roblox insider selling has also been active, with executives and directors offloading shares in recent months; insiders sold 568,662 shares worth about $39.2 million over the past three months.
• Roblox stock fell 6.5% to $41.88, near its 52-week low, even after the company reported better-than-expected quarterly EPS, though revenue came in below estimates.

Comerica Bank lowered its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 86.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 17,013 shares of the company's stock after selling 108,677 shares during the quarter. Comerica Bank's holdings in Roblox were worth $1,379,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also bought and sold shares of the company. Reyes Financial Architecture Inc. lifted its position in Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock valued at $25,000 after purchasing an additional 194 shares during the last quarter. Pilgrim Partners Asia Pte Ltd bought a new position in Roblox during the third quarter valued at $26,000. Indiana Trust & Investment Management Co purchased a new position in Roblox during the fourth quarter worth $32,000. Whittier Trust Co. of Nevada Inc. purchased a new position in Roblox during the third quarter worth $37,000. Finally, Root Financial Partners LLC purchased a new position in Roblox during the third quarter worth $38,000. Institutional investors own 94.46% of the company's stock.

Insider Activity

In related news, insider Mark Reinstra sold 18,653 shares of the business'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 transaction of $1,080,754.82. Following the completion of the sale, the insider directly owned 455,473 shares in the company, valued at approximately $26,390,105.62. The trade was a 3.93% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $44.97, for a total value of $749,470.02. Following the sale, the director owned 1,294,501 shares of the company's stock, valued at $58,213,709.97. The trade was a 1.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 568,662 shares of company stock valued at $39,170,616 in the last three months. Company insiders own 12.92% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on RBLX shares. Oppenheimer started coverage on Roblox in a research report on Friday, May 1st. They set an "outperform" rating for the company. Citigroup cut their price target on Roblox from $90.00 to $70.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Freedom Capital upgraded Roblox from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 6th. Wedbush lowered Roblox from a "hold" rating to a "neutral" rating in a research note on Friday, May 1st. Finally, Needham & Company LLC initiated coverage on Roblox in a research note on Friday, May 1st. They set a "buy" rating and a $60.00 price target on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $87.17.

Roblox Trading Down 6.5%

Roblox stock opened at $41.88 on Friday. Roblox Corporation has a 52 week low of $41.66 and a 52 week high of $150.59. The company has a market capitalization of $28.12 billion, a price-to-earnings ratio of -26.50 and a beta of 1.50. The stock has a 50-day moving average price of $58.29 and a 200 day moving average price of $77.59. 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 (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during 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%.Roblox's revenue for the quarter was up 43.4% on a year-over-year basis. During the same period in the previous year, the company posted ($0.32) earnings per share. Sell-side analysts anticipate that Roblox Corporation will post -1.4 EPS for the current year.

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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