Roblox Corporation $RBLX Stock Position Trimmed by Westfield Capital Management Co. LP

Key Points

• Westfield Capital Management sharply reduced its Roblox stake by 61.2% in the fourth quarter, selling 727,905 shares and ending with 461,670 shares valued at about $37.4 million.
• Recent insider selling has also been notable, including transactions by Sean Jack Buckley and Mark Reinstra, with insiders selling 183,471 shares over the past three months.
• Roblox reported mixed quarterly results: EPS beat expectations at -$0.35, but revenue of $1.44 billion came in below estimates. The company also authorized a $3 billion share buyback, equal to up to 9.5% of outstanding shares.

Westfield Capital Management Co. LP cut its position in Roblox Corporation (NYSE:RBLX - Free Report) by 61.2% during the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 461,670 shares of the company's stock after selling 727,905 shares during the quarter. Westfield Capital Management Co. LP owned about 0.07% of Roblox worth $37,409,000 at the end of the most recent quarter.

Several other large investors have also recently bought and sold shares of the stock. Reyes Financial Architecture Inc. raised its holdings in Roblox by 164.4% during the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after purchasing an additional 194 shares in the last quarter. Fideuram Asset Management Ireland dac acquired a new position in shares of Roblox during the 4th quarter valued at $27,000. Indiana Trust & Investment Management Co acquired a new position in shares of Roblox during the 4th quarter valued at $32,000. Garner Asset Management Corp acquired a new position in shares of Roblox during the 4th quarter valued at $37,000. Finally, Sunbelt Securities Inc. increased its position in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock valued at $39,000 after purchasing an additional 105 shares during the period. Institutional investors and hedge funds own 94.46% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on RBLX shares. Wedbush downgraded shares of Roblox from a "hold" rating to a "neutral" rating in a report on Friday, May 1st. TD Cowen upgraded shares of Roblox from a "sell" rating to a "hold" rating and dropped their target price for the stock from $54.00 to $49.00 in a report on Friday, May 1st. Canaccord Genuity Group dropped their target price on shares of Roblox from $140.00 to $80.00 and set a "buy" rating on the stock in a report on Friday, May 1st. HSBC downgraded shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 target price on the stock. in a report on Friday, May 1st. Finally, Needham & Company LLC started coverage on shares of Roblox in a report on Friday, May 1st. They issued a "buy" rating and a $60.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $87.07.

Insider Buying and Selling

In other news, insider Sean Jack Buckley sold 4,744 shares of the business's stock in a transaction 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 directly owned 97,141 shares in the company, valued at approximately $4,503,456.76. The trade was a 4.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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 company's stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $46.40, for a total transaction of $253,344.00. Following the transaction, 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 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. Over the last three months, insiders sold 183,471 shares of company stock valued at $8,930,068. 10.05% of the stock is owned by company insiders.

Roblox Stock Performance

Shares of RBLX opened at $41.92 on Friday. The company's 50 day moving average price is $51.24 and its 200 day moving average price is $67.43. Roblox Corporation has a 52 week low of $40.15 and a 52 week high of $150.59. The company has a market capitalization of $28.15 billion, a PE ratio of -26.53 and a beta of 1.44. The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89.

Roblox (NYSE:RBLX - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion during the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.32) earnings per share. Research analysts expect that Roblox Corporation will post -1.4 EPS for the current fiscal year.

Roblox declared that its board has approved a stock buyback plan on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

Roblox 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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