Roblox (NYSE:RBLX) Stock Price Crosses Below Two Hundred Day Moving Average Following Insider Selling

Key Points

• Roblox shares fell below their 200-day moving average of $51.20, trading as low as $49.50 and last quoted at about $49.93.
• Insider Mark Reinstra sold 5,071 shares for roughly $262,000 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 1.31%.
• Analysts’ consensus rating was Hold, with an average price target of $53.04. In its latest quarter, Roblox beat expectations on loss per share but revenue of $1.57 billion came in below the $1.63 billion consensus, despite year-over-year growth of 15.6%.

Roblox Corporation (NYSE:RBLX - Get Free Report) shares passed below its two hundred day moving average during trading on Friday after an insider sold shares in the company. The stock has a two hundred day moving average of $51.20 and traded as low as $49.50. Roblox shares last traded at $49.9290, with a volume of 5,338,539 shares.

Specifically, insider Mark Reinstra sold 5,071 shares of the company's stock in a transaction that occurred on Monday, November 9th. The stock was sold at an average price of $51.66, for a total transaction of $261,967.86. Following the completion of the transaction, the insider directly owned 381,554 shares of the company's stock, valued at $19,711,079.64. This represents a 1.31% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Bank of America increased their target price on Roblox from $44.00 to $48.00 and gave the company a "neutral" rating in a research report on Monday, September 14th. BMO Capital Markets lowered shares of Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 price target for the company. in a report on Friday, July 31st. DA Davidson reduced their price objective on shares of Roblox from $50.00 to $48.00 and set a "neutral" rating for the company in a research report on Monday, November 2nd. Benchmark cut shares of Roblox from a "hold" rating to a "sell" rating and set a $33.00 price objective for the company. in a research report on Friday, July 31st. Finally, Canaccord Genuity Group set a $58.00 price objective on shares of Roblox in a report on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, thirteen have issued a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $53.04.

Top Roblox Stories

Investors following RBLX have been watching these stories:

• Positive Sentiment: Roblox trades at about 4.9 times sales, below its five-year average, which may appeal to investors who believe the platform’s growth prospects remain intact. Is Citi Wrong to Give Up on Roblox? It Trades at 4.9x Sales, Below Its 5-Year Average
• Neutral Sentiment: Citi cut its rating from Buy to Neutral but set a $55 price target, above the cited $49.93 share price. The target suggests potential upside, though the rating change signals a more cautious view. Roblox edges lower as Citi downgrades stock to neutral on growth risks
• Neutral Sentiment: Insider Mark Reinstra sold 5,071 shares under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 1.31%. The planned sale may be less informative than an unexpected transaction. Roblox insider sells shares

Roblox Trading Down 2.9%

The company has a 50 day moving average of $48.27 and a 200 day moving average of $51.20. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.80 and a current ratio of 0.80. The stock has a market capitalization of $33.52 billion, a price-to-earnings ratio of -36.18 and a beta of 1.45.

Roblox (NYSE:RBLX - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported ($0.32) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.43) by $0.11. Roblox had a negative net margin of 16.48% and a negative return on equity of 417.56%. The company had revenue of $1.57 billion for the quarter, compared to analysts' expectations of $1.63 billion. During the same quarter in the previous year, the company posted ($0.37) EPS. The firm's quarterly revenue was up 15.6% on a year-over-year basis. On average, research analysts predict that Roblox Corporation will post -1.36 EPS for the current fiscal year.

Hedge Funds Weigh In On Roblox

Several hedge funds and other institutional investors have recently modified their holdings of the business. Ieq Capital LLC increased its position in shares of Roblox by 1.0% during the third quarter. Ieq Capital LLC now owns 16,746,570 shares of the company's stock valued at $709,552,000 after acquiring an additional 172,017 shares during the last quarter. Renaissance Technologies LLC lifted its holdings in shares of Roblox by 7.5% in the 1st quarter. Renaissance Technologies LLC now owns 7,126,134 shares of the company's stock worth $403,054,000 after acquiring an additional 497,625 shares during the last quarter. Amundi lifted its holdings in shares of Roblox by 83.7% in the 1st quarter. Amundi now owns 5,774,151 shares of the company's stock worth $326,586,000 after acquiring an additional 2,631,074 shares during the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of Roblox by 216.4% in the 3rd quarter. Assenagon Asset Management S.A. now owns 5,992,101 shares of the company's stock worth $253,885,000 after acquiring an additional 4,098,311 shares during the last quarter. Finally, Amova Asset Management Americas Inc. lifted its holdings in shares of Roblox by 17.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,238,160 shares of the company's stock worth $183,247,000 after acquiring an additional 469,379 shares during the last quarter. 94.46% of the stock is owned by hedge funds and other institutional investors.

Roblox Company Profile

Roblox Corporation operates an online platform where users can create, share and play interactive 3D experiences. The company provides Roblox Studio, a set of tools that creators use to build games and other virtual spaces, as well as services for users to connect and communicate within those experiences. Roblox supports a creator economy through Robux, its virtual currency, which users can use for digital items and purchases in experiences. Eligible creators can earn revenue from their work through purchases and other platform programs.

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