Mark Reinstra Sells 6,250 Shares of Roblox (NYSE:RBLX) Stock

Key Points

• Roblox insider Mark Reinstra sold 6,250 shares at $40 each for $250,000 under a pre-arranged Rule 10b5-1 plan, reducing his stake by 1.48% to 415,998 shares.
• Roblox shares fell 0.4% to $38.52, while the company reported a quarterly EPS loss of $0.26 that beat estimates but revenue of $1.47 billion missed expectations. Revenue nevertheless increased 8.3% year over year.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and average price target of $60.89; Roblox has also authorized a $3 billion stock repurchase program covering up to 9.5% of outstanding shares.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 6,250 shares of Roblox stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $40.00, for a total value of $250,000.00. Following the completion of the transaction, the insider owned 415,998 shares in the company, valued at approximately $16,639,920. This represents a 1.48% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• 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.
• On Monday, June 8th, Mark Reinstra sold 5,978 shares of Roblox stock. The shares were sold at an average price of $41.71, for a total value of $249,342.38.

Roblox Trading Down 0.4%

RBLX stock traded down $0.17 during trading on Thursday, hitting $38.52. 11,454,938 shares of the company traded hands, compared to its average volume of 11,965,261. The company has a 50-day moving average of $47.31 and a 200-day moving average of $52.96. 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 Corporation has a 1 year low of $33.88 and a 1 year high of $142.00. The firm has a market capitalization of $25.81 billion, a PE ratio of -26.94 and a beta of 1.46.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, topping 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 business had revenue of $1.47 billion for the quarter, compared to analysts' expectations of $1.60 billion. During the same period in the previous year, the firm earned ($0.41) EPS. The business's quarterly revenue was up 8.3% on a year-over-year basis. Analysts predict that Roblox Corporation will post -1.39 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On Roblox

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its position in Roblox by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 63,458,784 shares of the company's stock valued at $5,142,065,000 after purchasing an additional 1,020,786 shares during the period. Capital International Investors lifted its position in shares of Roblox by 7.3% in the 4th quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after purchasing an additional 2,184,439 shares during the period. Morgan Stanley boosted its stake in shares of Roblox by 8.1% during the 4th quarter. Morgan Stanley now owns 20,728,914 shares of the company's stock valued at $1,679,664,000 after purchasing an additional 1,555,549 shares in the last quarter. State Street Corp boosted its stake in shares of Roblox by 3.3% during the 4th quarter. State Street Corp now owns 13,812,362 shares of the company's stock valued at $1,119,216,000 after purchasing an additional 442,518 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Roblox by 4.7% during the fourth quarter. Geode Capital Management LLC now owns 12,220,045 shares of the company's stock valued at $988,002,000 after buying an additional 547,103 shares during the period. Institutional investors own 94.46% of the company's stock.

Wall Street Analyst Weigh In

RBLX has been the subject of a number of recent analyst reports. Oppenheimer lowered their price target on shares of Roblox from $82.00 to $50.00 and set an "outperform" rating for the company in a report on Tuesday, August 4th. HSBC lowered shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 price target on the stock. in a report on Friday, May 1st. Arete Research set a $95.00 price objective on shares of Roblox and gave the company a "buy" rating in a research report on Monday, June 29th. Barclays lowered their price objective on shares of Roblox from $60.00 to $47.00 and set an "equal weight" rating for the company in a research note on Monday, August 3rd. Finally, BMO Capital Markets lowered shares of Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 target price for the company. in a report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Roblox has a consensus rating of "Hold" and an average target price 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source