Roblox Corporation $RBLX Stock Position Lessened by Employees Retirement System of Texas

Key Points

• Employees Retirement System of Texas cut its Roblox stake by 55.9% in the fourth quarter, selling 48,008 shares and ending with 37,938 shares worth about $3.07 million.
• Roblox insiders also trimmed holdings, including CAO Amy Marie Rawlings and insider Mark Reinstra, with insiders selling $8.93 million worth of stock over the last quarter. Even so, insiders still hold about 10.05% of the company.
• Roblox recently authorized a $3 billion share buyback, but the stock is trading well below its highs after a weak earnings report that beat EPS estimates but missed on revenue. Analysts currently rate the stock a consensus Hold.

Employees Retirement System of Texas decreased its holdings in Roblox Corporation (NYSE:RBLX - Free Report) by 55.9% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 37,938 shares of the company's stock after selling 48,008 shares during the quarter. Employees Retirement System of Texas' holdings in Roblox were worth $3,074,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently modified their holdings of the company. Baird Financial Group Inc. boosted its holdings in shares of Roblox by 1.4% in the second 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. boosted its holdings in shares of Roblox by 58.7% in the third 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. boosted its holdings in shares of Roblox by 2.8% in the third 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 boosted its holdings in shares of Roblox by 0.6% in the third 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 boosted its holdings in shares of Roblox by 1.3% in the second 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. Institutional investors own 94.46% of the company's stock.

Insider Buying and Selling at Roblox

In other news, CAO Amy Marie Rawlings sold 2,895 shares of Roblox stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $45.24, for a total transaction of $130,969.80. Following the completion of the sale, the chief accounting officer directly owned 35,238 shares in the company, valued at $1,594,167.12. The trade was a 7.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 value of $253,344.00. Following the sale, the insider owned 432,738 shares of the company's stock, valued at approximately $20,079,043.20. This 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 over the last quarter. Insiders own 10.05% of the company's stock.

Roblox Trading Down 0.6%

Shares of NYSE:RBLX opened at $45.73 on Thursday. The firm has a fifty day moving average of $52.92 and a two-hundred day moving average of $70.09. The firm has a market capitalization of $30.71 billion, a P/E ratio of -28.95 and a beta of 1.50. 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.

Roblox (NYSE:RBLX - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.41) by $0.06. The company had revenue of $1.44 billion during 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 company's revenue for the quarter was up 43.4% on a year-over-year basis. During the same quarter last year, the business posted ($0.32) EPS. On average, equities analysts expect that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox announced that its board has authorized a stock buyback program on Tuesday, May 19th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the company to purchase up to 9.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several research analysts have recently issued reports on RBLX shares. JPMorgan Chase & Co. decreased their price objective on shares of Roblox from $100.00 to $75.00 and set a "neutral" rating for the company in a report on Friday, February 6th. BMO Capital Markets reaffirmed an "outperform" rating on shares of Roblox in a research note on Friday, February 6th. Needham & Company LLC initiated coverage on Roblox in a research note on Friday, May 1st. They set a "buy" rating and a $60.00 target price for the company. Benchmark reaffirmed a "hold" rating on shares of Roblox in a research note on Monday, February 2nd. Finally, Wall Street Zen upgraded shares of Roblox from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. One investment 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 stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $87.07.

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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