Intech Investment Management LLC Sells 140,536 Shares of Roblox Corporation $RBLX

Key Points

• Intech Investment Management LLC cut its Roblox position by 65.9% in the fourth quarter, selling 140,536 shares and leaving it with 72,779 shares worth about $5.9 million.
• Roblox reported quarterly EPS of -$0.35, topping estimates, but revenue of $1.44 billion came in below expectations even as sales rose 43.4% year over year.
• The company also announced a $3 billion share repurchase program, while analysts remained mixed with an overall Hold rating and an average target price of $87.07.

Intech Investment Management LLC lessened its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 65.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 72,779 shares of the company's stock after selling 140,536 shares during the quarter. Intech Investment Management LLC's holdings in Roblox were worth $5,897,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in RBLX. Reyes Financial Architecture Inc. raised its stake in 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 period. Indiana Trust & Investment Management Co acquired a new stake in Roblox during the 4th quarter worth $32,000. Garner Asset Management Corp acquired a new stake in Roblox during the 4th quarter worth $37,000. Sunbelt Securities Inc. raised its stake in Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after buying an additional 105 shares during the period. Finally, Horizon Investments LLC raised its stake in Roblox by 2,636.4% during the 3rd quarter. Horizon Investments LLC now owns 301 shares of the company's stock worth $42,000 after buying an additional 290 shares during the period. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Stock Performance

RBLX opened at $47.10 on Friday. The business's 50-day moving average price is $52.48 and its two-hundred day moving average price is $69.51. Roblox Corporation has a 1 year low of $40.15 and a 1 year high of $150.59. The company has a market capitalization of $31.63 billion, a price-to-earnings ratio of -29.81 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 quarterly 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. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The firm had revenue of $1.44 billion for the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter last year, the business posted ($0.32) EPS. The company's revenue for the quarter was up 43.4% on a year-over-year basis. Equities analysts expect that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox announced that its board has initiated a share repurchase plan on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company's board believes its shares are undervalued.

Wall Street Analyst Weigh In

Several analysts recently commented on the company. Freedom Capital raised Roblox from a "hold" rating to a "strong-buy" rating in a research note on Friday, February 6th. BTIG Research downgraded Roblox from a "buy" rating to a "neutral" rating in a research note on Friday, May 1st. Barclays dropped their price objective on Roblox from $115.00 to $60.00 and set an "equal weight" rating on the stock in a research note on Friday, May 1st. Needham & Company LLC started coverage on Roblox in a research note on Friday, May 1st. They set a "buy" rating and a $60.00 price objective on the stock. Finally, TD Cowen raised Roblox from a "sell" rating to a "hold" rating and dropped their price target for the company from $54.00 to $49.00 in a research note on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fourteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $87.07.

Insider Transactions at Roblox

In related news, insider Sean Jack Buckley sold 4,744 shares of Roblox stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $46.36, for a total value of $219,931.84. Following the sale, the insider owned 97,141 shares of the company's stock, valued at approximately $4,503,456.76. The trade was a 4.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Baszucki sold 50,628 shares of Roblox stock in a transaction dated Wednesday, May 20th. The shares were 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 directly owned 852,214 shares in the company, valued at approximately $38,588,249.92. This represents a 5.61% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 183,471 shares of company stock worth $8,930,068. 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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