Roblox (NYSE:RBLX) Insider Sells 5,773 Shares

Key Points

• Roblox insider Mark Reinstra sold 5,773 shares at an average price of $44.80, totaling $258,630.40. The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, leaving him with 392,291 shares.
• Roblox shares fell 0.6% to $44.56, while the company reported an adjusted quarterly loss of $0.26 per share and revenue of $1.47 billion, up 8.3% year over year but below analyst estimates.
• Analysts have an overall “Hold” rating on Roblox, with an average price target of $59.21, while the company has authorized a $3 billion share-buyback program covering up to 9.5% of outstanding shares.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 5,773 shares of Roblox stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $44.80, for a total value of $258,630.40. Following the completion of the sale, the insider directly owned 392,291 shares in the company, valued at $17,574,636.80. This represents a 1.45% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Mark Reinstra also recently made the following trade(s):

• On Thursday, August 20th, Mark Reinstra sold 17,934 shares of Roblox stock. The stock was sold at an average price of $37.96, for a total transaction of $680,774.64.
• On Wednesday, August 19th, Mark Reinstra sold 6,250 shares of Roblox stock. The shares were sold at an average price of $40.00, for a total value of $250,000.00.
• On Monday, July 6th, Mark Reinstra sold 4,512 shares of Roblox stock. The shares were sold at an average price of $57.34, for a total value of $258,718.08.

Roblox Stock Down 0.6%

Shares of NYSE RBLX traded down $0.26 during trading on Wednesday, hitting $44.56. 8,630,204 shares of the company traded hands, compared to its average volume of 9,984,149. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The firm has a market capitalization of $29.86 billion, a price-to-earnings ratio of -31.16 and a beta of 1.47. Roblox Corporation has a fifty-two week low of $33.88 and a fifty-two week high of $142.00. The business's fifty day moving average is $44.77 and its 200 day moving average is $50.33.

Roblox (NYSE:RBLX - Get Free Report) last released its quarterly earnings data 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. Roblox had a negative return on equity of 292.85% and a negative net margin of 17.60%.The company had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.60 billion. During the same period in the previous year, the company posted ($0.41) EPS. The firm's revenue for the quarter was up 8.3% compared to the same quarter last year. Equities research analysts predict that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

Roblox announced that its board has authorized a share buyback program on Tuesday, May 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the company to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company's board of directors believes its shares are undervalued.

Analysts Set New Price Targets

RBLX has been the subject of a number of research reports. DA Davidson set a $40.00 target price on Roblox in a research report on Friday, July 31st. Wall Street Zen upgraded shares of Roblox from a "sell" rating to a "hold" rating in a research report on Saturday, July 18th. Wolfe Research downgraded shares of Roblox from an "outperform" rating to a "hold" rating in a report on Friday, July 31st. BTIG Research downgraded shares of Roblox from a "neutral" rating to a "sell" rating and set a $30.00 price target for the company. in a report on Friday, July 31st. Finally, Benchmark lowered Roblox from a "hold" rating to a "sell" rating and set a $33.00 price target for the company. in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Roblox presently has an average rating of "Hold" and an average target price of $59.21.

Institutional Investors Weigh In On Roblox

A number of hedge funds have recently made changes to their positions in the stock. Hanson & Doremus Investment Management purchased a new stake in shares of Roblox during the first quarter worth about $25,000. Fideuram Asset Management Ireland dac purchased a new position in shares of Roblox during the 4th quarter valued at approximately $27,000. Basecamp Wealth Advisors LLC grew its stake in Roblox by 98.8% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock valued at $29,000 after acquiring an additional 252 shares during the period. GW&K Investment Management LLC increased its holdings in Roblox by 76.3% in the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after acquiring an additional 161 shares in the last quarter. Finally, Root Financial Partners LLC increased its holdings in Roblox by 100.7% in the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company's stock worth $32,000 after acquiring an additional 283 shares in the last quarter. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

About Roblox

Roblox Corporation develops and operates Roblox, an online platform where users can create, share and play interactive experiences. The platform supports a broad range of user-generated content, including games, social spaces, educational activities and entertainment experiences, and is accessible across computers, mobile devices, consoles and other supported platforms.

Roblox provides development tools through Roblox Studio, while its virtual economy uses Robux, a digital currency that users can purchase and spend on virtual items, avatar customization and other platform content.

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