Roblox Corporation (NYSE:RBLX) Short Interest Update

Key Points

• Roblox short interest fell 42.4% to 13.88 million shares as of August 14, representing 2.3% of shares outstanding and just 0.8 days to cover.
• Analyst sentiment is mixed, with an average “Hold” rating and a $60.89 consensus price target; several firms recently downgraded the stock, while others maintained bullish or neutral views.
• Roblox shares traded at $38.69, well below their 52-week high of $142.00. The company beat quarterly EPS expectations but missed revenue estimates, while its board has authorized a $3 billion share buyback.

Roblox Corporation (NYSE:RBLX - Get Free Report) was the recipient of a large decrease in short interest in the month of August. As of August 14th, there was short interest totaling 13,884,449 shares, a decrease of 42.4% from the July 30th total of 24,107,149 shares. Currently, 2.3% of the shares of the company are short sold. Based on an average daily trading volume, of 16,510,605 shares, the days-to-cover ratio is presently 0.8 days.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Wolfe Research lowered shares of Roblox from an "outperform" rating to a "hold" rating in a research report on Friday, July 31st. BMO Capital Markets downgraded shares of Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 price target on the stock. in a research report on Friday, July 31st. Cantor Fitzgerald started coverage on shares of Roblox in a research note on Monday, June 29th. They set an "overweight" rating on the stock. Wells Fargo & Company set a $46.00 price objective on shares of Roblox in a research report on Monday, August 3rd. Finally, Moffett Nathanson restated a "neutral" rating and issued a $40.00 price objective on shares of Roblox in a research note on Monday, August 3rd. One equities 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 given a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average target price of $60.89.

Insider Transactions at Roblox

In related news, CEO David Baszucki sold 52,568 shares of Roblox stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total value of $1,995,481.28. Following the completion of the sale, the chief executive officer owned 799,646 shares of the company's stock, valued at $30,354,562.16. The trade was a 6.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark Reinstra sold 17,934 shares of the company's stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $680,774.64. Following the sale, the insider owned 398,064 shares of the company's stock, valued at approximately $15,110,509.44. This trade represents a 4.31% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 168,213 shares of company stock worth $6,831,901. Company insiders own 10.05% of the company's stock.

Institutional Trading of Roblox

Institutional investors and hedge funds have recently bought and sold shares of the stock. Hanson & Doremus Investment Management bought a new stake in shares of Roblox in the first quarter worth about $25,000. Fideuram Asset Management Ireland dac purchased a new stake in Roblox during the fourth quarter valued at $27,000. Basecamp Wealth Advisors LLC lifted its position in Roblox by 98.8% during the first quarter. Basecamp Wealth Advisors LLC now owns 507 shares of the company's stock valued at $29,000 after purchasing an additional 252 shares during the last quarter. GW&K Investment Management LLC grew its position in Roblox by 76.3% in the fourth 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 position in shares of Roblox by 100.7% during the 1st quarter. Root Financial Partners LLC now owns 564 shares of the company's stock valued at $32,000 after purchasing an additional 283 shares during the last quarter. 94.46% of the stock is currently owned by institutional investors.

Roblox Stock Performance

Roblox stock traded up $0.54 during midday trading on Friday, hitting $38.69. The stock had a trading volume of 7,736,066 shares, compared to its average volume of 16,047,966. The firm's fifty day moving average is $46.04 and its two-hundred day moving average is $51.76. The company has a market capitalization of $25.92 billion, a PE ratio of -27.06 and a beta of 1.46. Roblox has a 52-week low of $33.88 and a 52-week high of $142.00. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.26) earnings per share for the quarter, beating the consensus estimate of ($0.34) by $0.08. The business had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.60 billion. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The company's revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.41) earnings per share. On average, research analysts forecast that Roblox will post -1.39 EPS for the current year.

Roblox announced that its Board of Directors has approved a stock buyback plan on Tuesday, May 19th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the company to repurchase up to 9.5% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's board of directors believes its shares are undervalued.

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