Roblox Corporation $RBLX Position Trimmed by TD Asset Management Inc

Key Points

• TD Asset Management cut its Roblox stake by 20.9% in the fourth quarter, selling 123,653 shares and leaving it with 466,917 shares valued at about $37.8 million.
• Insiders have also been selling, including recent transactions by Sean Jack Buckley and Mark Reinstra; over the last quarter, insiders sold 183,471 shares worth roughly $8.93 million.
• Roblox shares fell 3.3% to $41.92, near their 12-month low, even as the company reported revenue growth and announced a $3 billion share buyback program.

TD Asset Management Inc trimmed its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 20.9% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 466,917 shares of the company's stock after selling 123,653 shares during the period. TD Asset Management Inc owned about 0.07% of Roblox worth $37,834,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in the company. Baird Financial Group Inc. lifted its position in shares of Roblox by 1.4% in the 2nd quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock valued at $767,000 after acquiring an additional 102 shares in the last quarter. Sunbelt Securities Inc. lifted its position in shares of Roblox by 58.7% in the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after acquiring an additional 105 shares in the last quarter. Brown Brothers Harriman & Co. lifted its position in shares of Roblox by 2.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock valued at $560,000 after acquiring an additional 110 shares in the last quarter. Westpac Banking Corp lifted its position in shares of Roblox by 0.6% in the 3rd quarter. Westpac Banking Corp now owns 20,043 shares of the company's stock valued at $2,776,000 after acquiring an additional 115 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its position in shares of Roblox by 1.3% in the 2nd quarter. NewEdge Advisors LLC now owns 10,374 shares of the company's stock valued at $1,091,000 after acquiring an additional 138 shares in the last quarter. Hedge funds and other institutional investors own 94.46% of the company's stock.

Insider Buying and Selling

In other Roblox news, insider Sean Jack Buckley sold 4,744 shares of the 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 owned 97,141 shares in the company, valued at $4,503,456.76. This represents a 4.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Mark Reinstra sold 5,460 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $46.40, for a total transaction of $253,344.00. Following the completion of the sale, the insider owned 432,738 shares of the company's stock, valued at approximately $20,079,043.20. The trade was a 1.25% decrease in their position. The SEC filing for this sale provides additional information. 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. Over the last quarter, insiders have sold 183,471 shares of company stock worth $8,930,068. Insiders own 10.05% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently commented on RBLX. Raymond James Financial downgraded shares of Roblox from an "outperform" rating to a "market perform" rating in a research report on Friday, May 1st. DA Davidson reduced their price target on shares of Roblox from $47.50 to $45.00 and set a "neutral" rating for the company in a research report on Friday, May 22nd. Jefferies Financial Group downgraded shares of Roblox from a "hold" rating to a "hold" rating in a research report on Friday, May 1st. Wall Street Zen downgraded shares of Roblox from a "hold" rating to a "sell" rating in a research report on Saturday, May 30th. Finally, TD Cowen upgraded shares of Roblox from a "sell" rating to a "hold" rating and reduced their price target for the company from $54.00 to $49.00 in a research report on Friday, May 1st. One 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 stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $87.07.

Roblox Stock Down 3.3%

RBLX stock opened at $41.92 on Friday. Roblox Corporation has a 12-month low of $40.15 and a 12-month high of $150.59. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The company has a market cap of $28.15 billion, a price-to-earnings ratio of -26.53 and a beta of 1.44. The company has a 50 day moving average of $51.24 and a two-hundred day moving average of $67.43.

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, topping analysts' consensus estimates of ($0.41) by $0.06. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. During the same quarter in the prior year, the firm earned ($0.32) EPS. The company's revenue was up 43.4% compared to the same quarter last year. On average, equities analysts anticipate that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

Roblox declared that its Board of Directors has approved a stock buyback program on Tuesday, May 19th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the company to reacquire up to 9.5% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

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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