Evolutionary Tree Capital Management LLC Cuts Position in Roblox Corporation (NYSE:RBLX)

Key Points

• Evolutionary Tree Capital Management LLC reduced its stake in Roblox Corporation by 37.1%, now holding 46,495 shares worth approximately $2.71 million, making it the 14th largest position in their portfolio.
• CEO David Baszucki sold 687,500 shares valued at $60.48 million, which marks a 76.47% decrease in his ownership of the stock, while insiders collectively sold over 5.25 million shares in the last ninety days.
• Roblox's latest earnings report revealed a loss of ($0.41) per share, missing the consensus estimate, but with a revenue of $1.44 billion, up 50.5% year-over-year.

Evolutionary Tree Capital Management LLC trimmed its position in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 37.1% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 46,495 shares of the company's stock after selling 27,388 shares during the period. Roblox comprises about 3.1% of Evolutionary Tree Capital Management LLC's portfolio, making the stock its 14th biggest position. Evolutionary Tree Capital Management LLC's holdings in Roblox were worth $2,710,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. Mirae Asset Global Investments Co. Ltd. increased its stake in Roblox by 15.5% in the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 35,483 shares of the company's stock valued at $2,096,000 after purchasing an additional 4,760 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund purchased a new position in Roblox in the first quarter valued at approximately $890,000. IFM Investors Pty Ltd increased its stake in Roblox by 7.2% in the first quarter. IFM Investors Pty Ltd now owns 92,118 shares of the company's stock valued at $5,370,000 after purchasing an additional 6,180 shares during the last quarter. Montag A & Associates Inc. increased its stake in Roblox by 1,193.7% in the first quarter. Montag A & Associates Inc. now owns 26,934 shares of the company's stock valued at $1,570,000 after purchasing an additional 24,852 shares during the last quarter. Finally, Azzad Asset Management Inc. ADV purchased a new position in Roblox in the first quarter valued at approximately $280,000. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, CEO David Baszucki sold 687,500 shares of the firm's stock in a transaction on Monday, June 2nd. The stock was sold at an average price of $87.97, for a total transaction of $60,479,375.00. Following the sale, the chief executive officer owned 211,559 shares in the company, valued at $18,610,845.23. This trade represents a 76.47% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Insiders sold a total of 5,251,703 shares of company stock worth $492,380,210 over the last ninety days. Company insiders own 12.92% of the company's stock.

Roblox Stock Performance

Shares of RBLX stock opened at $125.16 on Monday. The stock has a fifty day moving average price of $105.05 and a 200 day moving average price of $78.76. The stock has a market cap of $80.73 billion, a PE ratio of -87.52 and a beta of 1.63. Roblox Corporation has a 1 year low of $35.30 and a 1 year high of $150.59. The company has a debt-to-equity ratio of 2.94, a quick ratio of 0.97 and a current ratio of 0.97.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported ($0.41) earnings per share for the quarter, missing the consensus estimate of ($0.37) by ($0.04). The company had revenue of $1.44 billion for the quarter, compared to analysts' expectations of $1.20 billion. Roblox had a negative return on equity of 372.96% and a negative net margin of 23.67%. The business's quarterly revenue was up 50.5% on a year-over-year basis. During the same period in the previous year, the business posted ($0.32) EPS. Sell-side analysts forecast that Roblox Corporation will post -1.49 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Macquarie boosted their price objective on Roblox from $76.00 to $80.00 and gave the company an "outperform" rating in a research note on Monday, May 5th. Benchmark boosted their price objective on Roblox from $77.00 to $150.00 and gave the company a "buy" rating in a research note on Friday. The Goldman Sachs Group boosted their price objective on Roblox from $63.00 to $80.00 and gave the company a "neutral" rating in a research note on Wednesday, May 14th. Citigroup boosted their target price on Roblox from $123.00 to $152.00 and gave the company a "buy" rating in a report on Wednesday, July 23rd. Finally, Wall Street Zen lowered Roblox from a "hold" rating to a "sell" rating in a report on Saturday. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and nineteen have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $117.59.

About Roblox

Roblox Corporation develops and operates an online entertainment platform in the United States and internationally. It offers Roblox Studio, a free toolset that allows developers and creators to build, publish, and operate 3D experiences, and other content; Roblox Client, an application that allows users to explore 3D experience; and Roblox Cloud, which provides services and infrastructure that power the platform.

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