Geode Capital Management LLC Buys 547,103 Shares of Roblox Corporation $RBLX

Key Points

• Geode Capital Management increased its Roblox stake by 4.7% in the fourth quarter, buying 547,103 shares and lifting its total holding to 12.22 million shares worth about $988 million.
• Roblox recently reported better-than-expected EPS of -$0.35, though revenue of $1.44 billion came in below estimates. Revenue still rose 43.4% year over year, and analysts currently have a consensus Hold rating with a $87.07 price target.
• The company’s board approved a $3 billion share repurchase program covering up to 9.5% of outstanding stock, while insiders have also sold shares in recent transactions.

Geode Capital Management LLC grew its position in Roblox Corporation (NYSE:RBLX - Free Report) by 4.7% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 12,220,045 shares of the company's stock after purchasing an additional 547,103 shares during the period. Geode Capital Management LLC owned about 1.87% of Roblox worth $988,002,000 at the end of the most recent reporting period.

A number of other hedge funds also recently modified their holdings of RBLX. Sunbelt Securities Inc. boosted its holdings in shares of Roblox by 58.7% in the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after buying an additional 105 shares during the period. Horizon Investments LLC grew its position in Roblox by 2,636.4% in the third quarter. Horizon Investments LLC now owns 301 shares of the company's stock valued at $42,000 after purchasing an additional 290 shares in the last quarter. Reyes Financial Architecture Inc. boosted its stake in shares of Roblox by 164.4% during the 4th 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. Indiana Trust & Investment Management Co acquired a new stake in shares of Roblox in the fourth quarter valued at about $32,000. Finally, Bessemer Group Inc. grew its stake in Roblox by 21,600.0% in the third quarter. Bessemer Group Inc. now owns 434 shares of the company's stock valued at $60,000 after purchasing an additional 432 shares in the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Trading Up 0.6%

RBLX opened at $47.10 on Friday. The company has a market cap of $31.63 billion, a P/E ratio of -29.81 and a beta of 1.50. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The company's 50 day moving average is $52.48 and its 200-day moving average is $69.51. Roblox Corporation has a 1-year low of $40.15 and a 1-year 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) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. The business had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm's revenue was up 43.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.32) EPS. Equities research analysts predict that Roblox Corporation will post -1.4 earnings per share 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 buy up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's leadership believes its shares are undervalued.

Analyst Ratings Changes

A number of analysts have commented on the stock. The Goldman Sachs Group cut their price target on shares of Roblox from $125.00 to $65.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Roth Mkm set a $65.00 price objective on shares of Roblox in a research report on Tuesday, May 5th. BTIG Research downgraded shares of Roblox from a "buy" rating to a "neutral" rating in a report on Friday, May 1st. Freedom Capital raised Roblox from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 6th. Finally, Jefferies Financial Group lowered Roblox from a "hold" rating to a "hold" rating in a report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $87.07.

Insider Activity at Roblox

In related news, insider Matthew D. Kaufman sold 14,356 shares of the business's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total value of $649,896.12. Following the sale, the insider owned 349,964 shares of the company's stock, valued at $15,842,870.28. The trade was a 3.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 5,460 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $46.40, for a total value 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 trade represents a 1.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold a total of 183,471 shares of company stock worth $8,930,068 over the last 90 days. 10.05% of the stock is currently owned by company insiders.

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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