Roblox (NYSE:RBLX) Insider Matthew Kaufman Sells 14,904 Shares

Key Points

• Roblox insider Matthew Kaufman sold 14,904 shares at an average price of $37.96, generating $565,755.84. The sale covered tax-withholding obligations tied to vested equity awards, leaving him with 335,060 shares.
• Roblox shares rose 0.9% to $38.70 but remain well below their 50-day and 200-day moving averages. The company posted a quarterly loss of $0.26 per share, beating estimates, while revenue of $1.47 billion grew 8.3% year over year but missed forecasts.
• Analysts maintain a consensus “Hold” rating with an average price target of $60.89, despite several recent target cuts. Roblox also authorized a $3 billion share-repurchase program covering up to 9.5% of outstanding shares.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Matthew Kaufman sold 14,904 shares of the firm's stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total transaction of $565,755.84. Following the completion of the sale, the insider directly owned 335,060 shares of the company's stock, valued at approximately $12,718,877.60. This represents a 4.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Trading Up 0.9%

Roblox stock traded up $0.33 during mid-day trading on Monday, hitting $38.70. The stock had a trading volume of 8,331,997 shares, compared to its average volume of 11,929,390. The stock has a 50-day simple moving average of $47.11 and a two-hundred day simple moving average of $52.57. The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 7.82. The stock has a market capitalization of $25.93 billion, a PE ratio of -27.06 and a beta of 1.46. Roblox Corporation has a 12 month low of $33.88 and a 12 month high of $142.00.

Roblox (NYSE:RBLX - Get Free Report) last released its 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 net margin of 17.60% and a negative return on equity of 292.85%. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same quarter in the previous year, the business earned ($0.41) EPS. The business's quarterly revenue was up 8.3% compared to the same quarter last year. As a group, sell-side analysts forecast that Roblox Corporation will post -1.39 EPS for the current year.

Roblox declared that its Board of Directors has authorized a share repurchase program 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 shares through open market purchases. Shares buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

RBLX has been the topic of several research analyst reports. Oppenheimer dropped their price objective on Roblox from $82.00 to $50.00 and set an "outperform" rating on the stock in a research note on Tuesday, August 4th. BMO Capital Markets cut Roblox from an "outperform" rating to a "market perform" rating and set a $45.00 target price for the company. in a research note on Friday, July 31st. Jefferies Financial Group lowered Roblox from a "hold" rating to a "hold" rating in a research report on Friday, May 1st. TD Cowen cut their price objective on Roblox from $49.00 to $40.00 and set a "hold" rating on the stock in a report on Friday, July 31st. Finally, Arete Research set a $95.00 price objective on Roblox and gave the company a "buy" rating in a research report on Monday, June 29th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $60.89.

Institutional Investors Weigh In On Roblox

Several institutional investors have recently added to or reduced their stakes in RBLX. Hanson & Doremus Investment Management bought a new position in Roblox during the 1st quarter worth about $25,000. Fideuram Asset Management Ireland dac acquired a new stake in shares of Roblox in the 4th quarter valued at about $27,000. Basecamp Wealth Advisors LLC lifted its holdings in shares of Roblox by 98.8% in 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 in the last quarter. GW&K Investment Management LLC lifted its holdings in shares of Roblox by 76.3% in the fourth quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock valued at $30,000 after purchasing an additional 161 shares in the last quarter. Finally, Root Financial Partners LLC boosted its position in shares of Roblox by 100.7% during the first quarter. Root Financial Partners LLC now owns 564 shares of the company's stock worth $32,000 after buying an additional 283 shares during the period. 94.46% of the stock is owned by institutional investors.

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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