Roblox Corporation $RBLX Shares Acquired by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon increased its Roblox stake by 3.4% in the fourth quarter, bringing its holdings to 1,787,634 shares valued at about $144.9 million.
• Roblox reported better-than-expected earnings for the latest quarter, posting an EPS loss of $0.35 versus estimates for a $0.41 loss, while revenue rose 43.4% year over year to $1.44 billion.
• The company’s board approved a $3 billion share buyback program, while analysts currently rate the stock a consensus Hold with a target price of $87.07.

Bank of New York Mellon Corp lifted its holdings in shares of Roblox Corporation (NYSE:RBLX - Free Report) by 3.4% during the 4th quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 1,787,634 shares of the company's stock after acquiring an additional 58,802 shares during the period. Bank of New York Mellon Corp owned 0.27% of Roblox worth $144,852,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Cypress Wealth Services LLC acquired a new position in Roblox during the fourth quarter worth approximately $2,373,000. Yarbrough Capital LLC increased its position in Roblox by 1,514.5% during the fourth quarter. Yarbrough Capital LLC now owns 57,331 shares of the company's stock worth $4,646,000 after buying an additional 53,780 shares during the period. Glynn Capital Management LLC acquired a new position in Roblox during the fourth quarter worth approximately $5,706,000. Norges Bank acquired a new position in Roblox during the fourth quarter worth approximately $435,424,000. Finally, Vanguard Group Inc. increased its position in Roblox by 1.6% during the fourth quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company's stock worth $5,142,065,000 after buying an additional 1,020,786 shares during the period. Institutional investors and hedge funds own 94.46% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on RBLX shares. Needham & Company LLC assumed coverage on Roblox in a research report on Friday, May 1st. They set a "buy" rating and a $60.00 price target on the stock. Barclays decreased their price target 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. The Goldman Sachs Group decreased their target price on Roblox from $125.00 to $65.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Wall Street Zen downgraded Roblox from a "hold" rating to a "sell" rating in a research report on Saturday, May 30th. Finally, Oppenheimer assumed coverage on Roblox in a research report on Friday, May 1st. They set an "outperform" rating on the stock. One equities research 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 given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $87.07.

Roblox Stock Performance

NYSE RBLX opened at $41.92 on Friday. Roblox Corporation has a fifty-two week low of $40.15 and a fifty-two week high of $150.59. The stock has a market cap of $28.15 billion, a price-to-earnings ratio of -26.53 and a beta of 1.44. The business has a fifty day moving average of $51.24 and a 200-day moving average of $67.43. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45.

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

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

Insider Activity at Roblox

In other Roblox news, CEO David Baszucki sold 50,628 shares of the company's stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.28, for a total transaction 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 $38,588,249.92. This represents a 5.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 stock was sold at an average price of $46.40, for a total value of $253,344.00. Following the sale, the insider owned 432,738 shares of the company's stock, valued at $20,079,043.20. This represents a 1.25% decrease in their ownership of the stock. 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. Insiders sold a total of 183,471 shares of company stock valued at $8,930,068 over the last three months. Insiders own 10.05% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.