Fullerton Fund Management Co Ltd. Sells 1,256,560 Shares of Roblox Corporation $RBLX

Key Points

• Fullerton Fund Management nearly exited its Roblox position in the fourth quarter, selling 1,256,560 shares and cutting its stake by 99.7% to just 3,418 shares worth about $277,000.
• Roblox has been rolling out new child-safety focused accounts worldwide, including Roblox Kids and Roblox Select, as the company pushes stronger age-based protections for users under 16.
• The stock continues to face a mixed backdrop: analysts have turned more cautious with a Hold consensus, even as Roblox reported revenue growth and the board authorized a $3 billion share buyback.

Fullerton Fund Management Co Ltd. trimmed its position in Roblox Corporation (NYSE:RBLX - Free Report) by 99.7% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,418 shares of the company's stock after selling 1,256,560 shares during the quarter. Fullerton Fund Management Co Ltd.'s holdings in Roblox were worth $277,000 at the end of the most recent reporting period.

A number of other hedge funds have also added to or reduced their stakes in the company. Sunbelt Securities Inc. grew its stake in shares of Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after buying an additional 105 shares during the last quarter. Horizon Investments LLC grew its stake in shares of Roblox by 2,636.4% during the third quarter. Horizon Investments LLC now owns 301 shares of the company's stock worth $42,000 after buying an additional 290 shares during the last quarter. Reyes Financial Architecture Inc. grew its stake in shares of Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after buying an additional 194 shares during the last quarter. Fideuram Asset Management Ireland dac bought a new stake in shares of Roblox during the fourth quarter worth $27,000. Finally, GW&K Investment Management LLC grew its stake in shares of Roblox by 76.3% during the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after buying an additional 161 shares during the last quarter. 94.46% of the stock is owned by institutional investors.

Key Roblox News

Here are the key news stories impacting Roblox this week:

• Positive Sentiment: Roblox announced the global rollout of Roblox Kids and Roblox Select, new age-based accounts for users under 16 designed to strengthen child safety and adapt protections as children grow. Roblox Kids and Roblox Select Accounts Now Available Worldwide
• Positive Sentiment: Traders bought an unusually large number of Roblox call options, signaling speculative interest that can support the stock in the short term. Unusual options trading activity
• Positive Sentiment: Coverage around Roblox’s safety upgrades and global platform durability has highlighted potential improvements to the company’s long-term compliance posture and international access, including recent reporting that Russia lifted its ban after Roblox pledged better protections for young users. Roblox Sprints on Kids Products Rollout
• Neutral Sentiment: Analysts also pointed to stronger weekend engagement tied to a popular game, which may help offset some concerns about user growth, but this appears more like a usage trend than a major new catalyst. Roblox sees weekend engagement surge on Grow a Garden 2 — TD Cowen
• Negative Sentiment: Roblox faces multiple securities class action notices and law-firm reminders ahead of the August 7 lead-plaintiff deadline, keeping investor focus on alleged disclosure issues around the impact of age-verification changes on DAUs and growth expectations. RBLX Court Deadline: Roblox Corporation Investors are Notified of the Important August 7 Deadline in the Pending Securities Fraud Class Action Lawsuit

Insiders Place Their Bets

In related news, insider Mark Reinstra sold 18,653 shares of the business's stock in a transaction on Monday, April 13th. The shares were sold at an average price of $57.94, for a total value of $1,080,754.82. Following the transaction, the insider owned 455,473 shares in the company, valued at $26,390,105.62. The trade was a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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 dated Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total transaction of $649,896.12. Following the transaction, 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 disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 189,449 shares of company stock valued at $9,179,410 over the last quarter. Company insiders own 10.05% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on RBLX shares. TD Cowen raised shares of Roblox from a "sell" rating to a "hold" rating and decreased their target price for the stock from $54.00 to $49.00 in a research note on Friday, May 1st. BTIG Research cut shares of Roblox from a "buy" rating to a "neutral" rating in a research note on Friday, May 1st. Wall Street Zen cut shares of Roblox from a "hold" rating to a "sell" rating in a research note on Saturday, May 30th. Citigroup decreased their target price on shares of Roblox from $90.00 to $70.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Finally, The Goldman Sachs Group decreased their target price on shares of Roblox from $125.00 to $65.00 and set a "buy" rating on the stock in a research note on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Roblox presently has an average rating of "Hold" and an average price target of $87.07.

Roblox Price Performance

RBLX stock opened at $49.48 on Wednesday. The firm has a market cap of $33.23 billion, a price-to-earnings ratio of -31.32 and a beta of 1.44. 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 12-month low of $40.15 and a 12-month high of $150.59. The company's fifty day simple moving average is $49.56 and its 200 day simple moving average is $64.76.

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

Roblox declared that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its shares are undervalued.

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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