Roblox (NYSE:RBLX) Insider Matthew Kaufman Sells 14,356 Shares

Key Points

• Roblox insider Matthew Kaufman sold 14,356 shares on May 20 at an average price of $45.27, totaling about $649,896. The sale reduced his ownership by 3.94% and was tied to tax withholding from vested equity awards.
• The stock rose 4.5% to $48.23 in Friday trading, while the company’s market cap stood at $32.39 billion. Roblox remains well below its 52-week high of $150.59 and is trading under both its 50-day and 200-day moving averages.
• Roblox reported strong revenue growth but mixed results in its latest quarterly earnings, with EPS of -$0.35 beating expectations while revenue of $1.44 billion came in below estimates. The company also announced a $3 billion share buyback, and analysts currently have an average “Hold” rating with a $87.07 price target.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Matthew Kaufman sold 14,356 shares of the stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.27, for a total transaction of $649,896.12. Following the completion of the transaction, the insider owned 349,964 shares in the company, valued at $15,842,870.28. This represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Stock Up 4.5%

Roblox stock traded up $2.09 during mid-day trading on Friday, hitting $48.23. The company had a trading volume of 10,126,707 shares, compared to its average volume of 11,949,403. The stock has a market cap of $32.39 billion, a price-to-earnings ratio of -30.53 and a beta of 1.50. Roblox Corporation has a 1 year low of $40.15 and a 1 year high of $150.59. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 2.45. The business has a fifty day moving average of $53.81 and a 200 day moving average of $71.69.

Roblox (NYSE:RBLX - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, beating the consensus estimate of ($0.41) by $0.06. The company had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative net margin of 20.69% and a negative return on equity of 277.69%. The firm's revenue was up 43.4% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.32) earnings per share. On average, sell-side analysts expect that Roblox Corporation will post -1.4 earnings per share for the current fiscal year.

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

Hedge Funds Weigh In On Roblox

Hedge funds have recently modified their holdings of the business. Baird Financial Group Inc. lifted its holdings 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 during the period. Sunbelt Securities Inc. lifted its holdings in shares of Roblox by 58.7% during the third quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after purchasing an additional 105 shares during the period. Brown Brothers Harriman & Co. lifted its holdings in shares of Roblox by 2.8% during the third quarter. Brown Brothers Harriman & Co. now owns 4,042 shares of the company's stock worth $560,000 after purchasing an additional 110 shares during the period. Westpac Banking Corp lifted its holdings in shares of Roblox by 0.6% during the third quarter. Westpac Banking Corp now owns 20,043 shares of the company's stock worth $2,776,000 after purchasing an additional 115 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in shares of Roblox by 1.3% during the second quarter. NewEdge Advisors LLC now owns 10,374 shares of the company's stock worth $1,091,000 after purchasing an additional 138 shares during the period. 94.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

RBLX has been the topic of a number of research reports. UBS Group lowered their target price on shares of Roblox from $74.00 to $49.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Morgan Stanley restated an "overweight" rating and set a $62.00 target price on shares of Roblox in a research report on Friday, May 1st. Raymond James Financial lowered shares of Roblox from an "outperform" rating to a "market perform" rating in a research report on Friday, May 1st. HSBC lowered shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 target price on the stock. in a research report on Friday, May 1st. Finally, Oppenheimer initiated coverage on shares of Roblox in a research report on Friday, May 1st. They set an "outperform" rating on the stock. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Roblox currently has an average rating of "Hold" and an average price target of $87.07.

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.

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