Glynn Capital Management LLC Buys Shares of 70,419 Roblox Corporation $RBLX

Key Points

• Glynn Capital Management opened a new position in Roblox, buying 70,419 shares worth about $5.7 million in the fourth quarter. The stake makes up roughly 2.0% of its portfolio and is its 19th largest holding.
• Roblox reported quarterly earnings that beat EPS expectations, posting ($0.35) per share versus the expected ($0.41), but revenue of $1.44 billion came in below estimates. The company also remains unprofitable, with a negative net margin and analysts projecting a loss for the year.
• The company announced a $3 billion share buyback authorized by its board, covering up to 9.5% of outstanding shares. Meanwhile, CEO David Baszucki and another insider sold shares recently, adding to $8.93 million in insider sales over the past 90 days.

Glynn Capital Management LLC acquired a new position in shares of Roblox Corporation (NYSE:RBLX - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 70,419 shares of the company's stock, valued at approximately $5,706,000. Roblox comprises approximately 2.0% of Glynn Capital Management LLC's portfolio, making the stock its 19th biggest holding.

Other hedge funds also recently made changes to their positions in the company. Reyes Financial Architecture Inc. raised its position 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 acquiring an additional 194 shares during the last quarter. Indiana Trust & Investment Management Co bought a new position in shares of Roblox during the fourth quarter worth about $32,000. Garner Asset Management Corp bought a new position in shares of Roblox during the fourth quarter worth about $37,000. Sunbelt Securities Inc. raised its position 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 acquiring an additional 105 shares during the last quarter. Finally, Horizon Investments LLC raised its position 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 acquiring an additional 290 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

Roblox Trading Up 2.7%

NYSE RBLX opened at $46.86 on Friday. The business has a 50 day simple moving average of $52.70 and a 200 day simple moving average of $69.67. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59. The stock has a market capitalization of $31.47 billion, a P/E ratio of -29.66 and a beta of 1.50. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89.

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

Roblox announced that its Board of Directors has approved a share buyback plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Buying and Selling at Roblox

In other Roblox news, CEO David Baszucki sold 50,628 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total value of $2,292,435.84. Following the completion of the sale, the chief executive officer owned 852,214 shares of the company's stock, valued at approximately $38,588,249.92. This trade represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Sean Jack Buckley sold 4,744 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $46.36, for a total value of $219,931.84. Following the completion of the sale, the insider directly owned 97,141 shares of the company's stock, valued at $4,503,456.76. This trade represents a 4.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 183,471 shares of company stock valued at $8,930,068 over the last ninety days. Insiders own 10.05% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Freedom Capital upgraded Roblox from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 6th. HSBC downgraded Roblox from a "buy" rating to a "hold" rating and set a $46.00 price objective for the company. in a research report on Friday, May 1st. Oppenheimer assumed coverage on Roblox in a research report on Friday, May 1st. They set an "outperform" rating for the company. Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research report on Friday, March 27th. Finally, Wolfe Research started coverage on Roblox in a research note on Friday, May 1st. They set an "outperform" rating for the company. One analyst has rated the stock with a Strong Buy rating, twelve have assigned 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 an average target price of $87.07.

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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