Insider Selling: Roblox (NYSE:RBLX) Insider Sells 18,653 Shares of Stock

Key Points

• Insider sale: Mark Reinstra sold 18,653 RBLX shares on April 13 at an average price of $57.94 to cover tax withholding, generating about $1.08M and reducing his stake by 3.93% to 455,473 shares.
• Recent results: Roblox reported quarterly EPS of ($0.45) (beat estimates by $0.04) and revenue of $1.42B (below the $2.08B consensus), with revenue up 122.6% YoY but a negative net margin (-21.78%) and negative return on equity.
• Analyst & ownership backdrop: The stock carries a "Moderate Buy" consensus with an average target of $116.76, institutional investors own about 94.46% of shares, and market cap is roughly $39.6B.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 18,653 shares of the firm's stock in a transaction dated Monday, April 13th. The stock was sold at an average price of $57.94, for a total value of $1,080,754.82. Following the completion of the transaction, the insider owned 455,473 shares of the company's stock, valued at approximately $26,390,105.62. The trade was a 3.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• On Friday, February 13th, Mark Reinstra sold 60,000 shares of Roblox stock. The shares were sold at an average price of $63.94, for a total transaction of $3,836,400.00.
• On Tuesday, February 10th, Mark Reinstra sold 34,320 shares of Roblox stock. The shares were sold at an average price of $72.65, for a total transaction of $2,493,348.00.

Roblox Stock Performance

NYSE RBLX traded up $1.54 on Wednesday, reaching $59.84. 7,313,618 shares of the company's stock traded hands, compared to its average volume of 11,454,154. The firm has a market cap of $39.59 billion, a price-to-earnings ratio of -38.61 and a beta of 1.67. The stock has a 50 day moving average price of $61.15 and a 200-day moving average price of $85.59. Roblox Corporation has a fifty-two week low of $51.23 and a fifty-two week high of $150.59. The company has a debt-to-equity ratio of 2.65, a quick ratio of 0.96 and a current ratio of 0.96.

Roblox (NYSE:RBLX - Get Free Report) last posted its earnings results on Thursday, February 5th. The company reported ($0.45) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.49) by $0.04. The company had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $2.08 billion. Roblox had a negative net margin of 21.78% and a negative return on equity of 304.42%. The firm's quarterly revenue was up 122.6% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.33) earnings per share. Equities research analysts predict that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on RBLX shares. Deutsche Bank Aktiengesellschaft set a $115.00 target price on shares of Roblox in a research report on Tuesday, January 20th. BMO Capital Markets reiterated an "outperform" rating on shares of Roblox in a research report on Friday, February 6th. BTIG Research reissued a "buy" rating and issued a $122.00 price objective on shares of Roblox in a report on Monday. Barclays cut their price objective on Roblox from $130.00 to $115.00 and set an "equal weight" rating for the company in a research report on Friday, February 6th. Finally, Freedom Capital upgraded Roblox from a "hold" rating to a "strong-buy" rating in a research report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $116.76.

Institutional Trading of Roblox

A number of institutional investors and hedge funds have recently modified their holdings of RBLX. NewEdge Advisors LLC increased its stake in shares of Roblox by 2.3% during the first quarter. NewEdge Advisors LLC now owns 10,236 shares of the company's stock worth $597,000 after purchasing an additional 231 shares in the last quarter. Sivia Capital Partners LLC increased its stake in shares of Roblox by 70.2% during the second quarter. Sivia Capital Partners LLC now owns 13,000 shares of the company's stock worth $1,368,000 after purchasing an additional 5,363 shares in the last quarter. CW Advisors LLC purchased a new stake in shares of Roblox during the second quarter worth about $272,000. Baird Financial Group Inc. increased its stake in shares of Roblox by 1.4% during the second quarter. Baird Financial Group Inc. now owns 7,294 shares of the company's stock worth $767,000 after purchasing an additional 102 shares in the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in shares of Roblox during the second quarter worth about $438,000. Hedge funds and other institutional investors own 94.46% 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.

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