Roblox Corporation $RBLX Shares Sold by Quantitative Investment Management LLC

Key Points

• Quantitative Investment Management LLC cut its Roblox stake by 78.3% in the second quarter, selling 76,947 shares and retaining 21,327 shares valued at approximately $1.16 million. Institutional investors and hedge funds collectively own 94.46% of RBLX.
• Roblox reported a quarterly loss of $0.26 per share, beating estimates for a $0.34 loss, while revenue of $1.47 billion fell short of the $1.60 billion consensus estimate. Revenue still increased 8.3% year over year, but the company remained unprofitable.
• Roblox authorized a $3 billion share-repurchase program, covering up to 9.5% of outstanding shares. Analysts maintain a consensus “Hold” rating with an average price target of $60.89, versus the stock’s reported opening price of $41.32.

Quantitative Investment Management LLC decreased its holdings in Roblox Corporation (NYSE:RBLX - Free Report) by 78.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 21,327 shares of the company's stock after selling 76,947 shares during the quarter. Quantitative Investment Management LLC's holdings in Roblox were worth $1,159,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of RBLX. Norges Bank purchased a new position in Roblox in the fourth quarter valued at approximately $435,424,000. SRS Investment Management LLC purchased a new stake in Roblox in the fourth quarter valued at $238,065,000. Amundi lifted its position in Roblox by 83.7% in the first quarter. Amundi now owns 5,774,151 shares of the company's stock valued at $326,586,000 after acquiring an additional 2,631,074 shares during the last quarter. Capital International Investors boosted its stake in Roblox by 7.3% in the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock valued at $2,589,282,000 after acquiring an additional 2,184,439 shares in the last quarter. Finally, ValueAct Holdings L.P. boosted its stake in Roblox by 39.5% in the fourth quarter. ValueAct Holdings L.P. now owns 5,975,821 shares of the company's stock valued at $484,221,000 after acquiring an additional 1,692,600 shares in the last quarter. 94.46% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other news, CEO David Baszucki sold 52,568 shares of Roblox stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $1,995,481.28. Following the completion of the sale, the chief executive officer directly owned 799,646 shares in the company, valued at approximately $30,354,562.16. This trade represents a 6.17% decrease in their position. The transaction 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 17,934 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the completion of the transaction, the insider directly owned 398,064 shares of the company's stock, valued at $15,110,509.44. The trade was a 4.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 168,213 shares of company stock valued at $6,831,901 in the last 90 days. 10.05% of the stock is owned by corporate insiders.

Roblox Price Performance

Roblox stock opened at $41.32 on Tuesday. The company has a market cap of $27.68 billion, a P/E ratio of -28.90 and a beta of 1.46. Roblox Corporation has a one year low of $33.88 and a one year high of $142.00. The business has a fifty day moving average of $45.92 and a two-hundred day moving average of $51.39. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.34) by $0.08. The business had revenue of $1.47 billion during the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The business's revenue was up 8.3% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.41) EPS. As a group, analysts predict that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Roblox declared that its board has initiated a stock repurchase program on Tuesday, May 19th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the company to reacquire up to 9.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company's leadership believes its stock is undervalued.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Wall Street Zen upgraded shares of Roblox from a "sell" rating to a "hold" rating in a research note on Saturday, July 18th. Arete Research set a $95.00 target price on shares of Roblox and gave the stock a "buy" rating in a research note on Monday, June 29th. Needham & Company LLC lowered their price target on Roblox from $60.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, July 31st. Benchmark cut Roblox from a "hold" rating to a "sell" rating and set a $33.00 price target on the stock. in a research report on Friday, July 31st. Finally, Wells Fargo & Company set a $46.00 target price on Roblox in a research note on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Roblox has a consensus rating of "Hold" and an average price target of $60.89.

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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