Cwm LLC Trims Stake in Roblox Corporation $RBLX

Key Points

• Cwm LLC trimmed its stake in Roblox by 15.8% in Q4, selling 44,086 shares and ending the period with 234,152 shares valued at about $18.97 million.
• Roblox's latest quarter showed an EPS of -$0.45 (beating -$0.49) but revenue of $1.42 billion missed the $2.08 billion estimate; revenue was up 122.6% year‑over‑year while the company remains unprofitable (negative net margin and ROE).
• Analyst sentiment is a consensus "Moderate Buy" with an average target of $116.76, though several firms have cut targets (JPMorgan to $75), and insiders sold roughly 551,996 shares (~$38.4M) over the past 90 days while owning 12.92% of the stock.

Cwm LLC lowered its position in Roblox Corporation (NYSE:RBLX - Free Report) by 15.8% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 234,152 shares of the company's stock after selling 44,086 shares during the quarter. Cwm LLC's holdings in Roblox were worth $18,973,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. NewEdge Advisors LLC increased its stake in Roblox by 2.3% in the 1st quarter. NewEdge Advisors LLC now owns 10,236 shares of the company's stock worth $597,000 after buying an additional 231 shares during the period. Sivia Capital Partners LLC increased its stake in Roblox by 70.2% in the 2nd quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company's stock worth $1,368,000 after buying an additional 5,363 shares during the period. CW Advisors LLC purchased a new position in Roblox in the 2nd quarter worth about $272,000. Baird Financial Group Inc. increased its stake in Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock worth $767,000 after buying an additional 102 shares during the period. Finally, WINTON GROUP Ltd purchased a new position in Roblox in the 2nd quarter worth about $438,000. Hedge funds and other institutional investors own 94.46% of the company's stock.

Roblox Stock Down 0.1%

NYSE:RBLX opened at $60.37 on Friday. Roblox Corporation has a fifty-two week low of $51.23 and a fifty-two week high of $150.59. The stock has a market capitalization of $39.94 billion, a P/E ratio of -38.95 and a beta of 1.67. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96. The company's 50-day simple moving average is $60.95 and its 200-day simple moving average is $84.67.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share for the quarter, beating analysts' consensus estimates of ($0.49) by $0.04. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The business had revenue of $1.42 billion for the quarter, compared to analysts' expectations of $2.08 billion. During the same period last year, the business earned ($0.33) EPS. The company's revenue was up 122.6% compared to the same quarter last year. On average, equities analysts anticipate that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms recently commented on RBLX. JPMorgan Chase & Co. reduced their price target on shares of Roblox from $100.00 to $75.00 and set a "neutral" rating on the stock in a research note on Friday, February 6th. DA Davidson began coverage on shares of Roblox in a research note on Wednesday, March 4th. They issued a "neutral" rating and a $65.00 price target on the stock. TD Cowen reaffirmed a "sell" rating on shares of Roblox in a research note on Tuesday, January 27th. Barclays reduced their price target on shares of Roblox from $130.00 to $115.00 and set an "equal weight" rating on the stock in a research note on Friday, February 6th. Finally, BMO Capital Markets reissued an "outperform" rating on shares of Roblox in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $116.76.

Insider Buying and Selling

In related news, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $57.95, for a total value of $965,794.70. Following the completion of the sale, the director directly owned 1,302,834 shares in the company, valued at $75,499,230.30. This trade represents a 1.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 10,834 shares of Roblox stock in a transaction that occurred on Friday, February 20th. The stock was sold at an average price of $61.63, for a total transaction of $667,699.42. Following the completion of the sale, the chief executive officer owned 800,539 shares of the company's stock, valued at $49,337,218.57. This trade represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 551,996 shares of company stock worth $38,421,146 over the last ninety days. Company 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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