Jupiter Asset Management Ltd. Invests $6 Million in Roblox Corporation $RBLX

Key Points

• Jupiter Asset Management opened a new position in Roblox during the fourth quarter, buying 73,983 shares valued at about $6 million.
• Roblox reported quarterly EPS of ($0.35), beating estimates, but revenue of $1.44 billion came in below expectations even as sales grew 43.4% year over year.
• The company’s board authorized a $3 billion stock buyback, while CEO David Baszucki and another insider sold shares in recent filings.

Jupiter Asset Management Ltd. purchased a new position in shares of Roblox Corporation (NYSE:RBLX - Free Report) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 73,983 shares of the company's stock, valued at approximately $5,995,000.

Several other hedge funds also recently modified their holdings of the business. Huntington National Bank increased its stake in shares of Roblox by 73.9% during the 4th quarter. Huntington National Bank now owns 734 shares of the company's stock worth $59,000 after purchasing an additional 312 shares during the last quarter. Arista Wealth Management LLC acquired a new position in shares of Roblox during the 4th quarter worth $324,000. Geode Capital Management LLC increased its stake in shares of Roblox by 4.7% during the 4th quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock worth $988,002,000 after purchasing an additional 547,103 shares during the last quarter. Harbour Investments Inc. increased its stake in shares of Roblox by 199.2% during the 4th quarter. Harbour Investments Inc. now owns 2,361 shares of the company's stock worth $191,000 after purchasing an additional 1,572 shares during the last quarter. Finally, Allstate Corp increased its stake in shares of Roblox by 119.0% during the 4th quarter. Allstate Corp now owns 44,408 shares of the company's stock worth $3,598,000 after purchasing an additional 24,127 shares during the last quarter. Institutional investors and hedge funds own 94.46% of the company's stock.

Roblox Stock Performance

NYSE RBLX opened at $47.10 on Friday. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89. The firm has a market capitalization of $31.63 billion, a price-to-earnings ratio of -29.81 and a beta of 1.50. The company's fifty day moving average is $52.48 and its two-hundred day moving average is $69.51. Roblox Corporation has a 52-week low of $40.15 and a 52-week high of $150.59.

Roblox (NYSE:RBLX - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.41) by $0.06. The company 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%. The business's quarterly revenue was up 43.4% on a year-over-year basis. During the same period last year, the business posted ($0.32) EPS. Equities research analysts forecast that Roblox Corporation will post -1.4 EPS for the current year.

Roblox announced that its Board of Directors has authorized a stock repurchase plan on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to repurchase up to 9.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its shares are undervalued.

Insider Buying and Selling at Roblox

In other news, 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 transaction of $2,292,435.84. Following the sale, the chief executive officer directly owned 852,214 shares in the company, valued at approximately $38,588,249.92. The trade was a 5.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 Roblox stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $46.40, for a total transaction of $253,344.00. Following the sale, the insider owned 432,738 shares in the company, valued at approximately $20,079,043.20. This trade represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 sold 183,471 shares of company stock worth $8,930,068 in the last 90 days. 10.05% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

RBLX has been the topic of several analyst reports. Benchmark restated a "hold" rating on shares of Roblox in a research note on Monday, February 2nd. Weiss Ratings reiterated a "sell (e+)" rating on shares of Roblox in a research note on Friday, March 27th. The Goldman Sachs Group lowered 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. Needham & Company LLC began coverage on shares of Roblox in a research note on Friday, May 1st. They issued a "buy" rating and a $60.00 target price on the stock. Finally, UBS Group lowered their target price on shares of Roblox from $74.00 to $49.00 and set a "neutral" rating on the stock in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $87.07.

About Roblox

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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