Roblox (NYSE:RBLX) Insider Sells $253,344.00 in Stock

Key Points

• Roblox insider Mark Reinstra sold shares worth $253,344 on May 21, disposing of 5,460 shares at an average price of $46.40. The sale was made under a pre-arranged 10b5-1 plan to cover tax withholding tied to equity award vesting.
• Roblox shares rose 4.5% to $48.23, even after recent insider selling. The stock remains well below its 52-week high of $150.59 and has seen mixed trading momentum.
• The company recently authorized a $3 billion stock buyback, which could signal management believes the shares are undervalued. Roblox also beat EPS estimates in its latest quarterly report, though revenue came in below expectations.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 5,460 shares of Roblox stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $46.40, for a total value of $253,344.00. Following the completion of the sale, the insider owned 432,738 shares in the company, valued at approximately $20,079,043.20. This represents a 1.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

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

• On Wednesday, May 20th, Mark Reinstra sold 17,275 shares of Roblox stock. The stock was sold at an average price of $45.28, for a total value of $782,212.00.
• On Monday, April 13th, Mark Reinstra sold 18,653 shares of Roblox stock. The stock was sold at an average price of $57.94, for a total value of $1,080,754.82.

Roblox Trading Up 4.5%

Shares of RBLX stock traded up $2.09 during trading hours on Friday, reaching $48.23. The company's stock had a trading volume of 10,126,707 shares, compared to its average volume of 11,949,403. The stock has a market capitalization of $32.39 billion, a P/E ratio of -30.53 and a beta of 1.50. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59. The firm's fifty day simple moving average is $53.81 and its 200 day simple moving average is $71.69. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45.

Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The business's quarterly revenue was up 43.4% compared to the same quarter last year. During the same period last year, the company earned ($0.32) EPS. Equities research analysts expect that Roblox Corporation will post -1.4 EPS for the current year.

Roblox announced that its board has authorized 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 purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Institutional Investors Weigh In On Roblox

Several hedge funds have recently added to or reduced their stakes in the stock. Western Wealth Management LLC bought a new stake in Roblox in the first quarter worth $33,000. Bull Harbor Capital LLC bought a new stake in Roblox in the first quarter worth $651,000. Arkadios Wealth Advisors boosted its holdings in Roblox by 195.3% in the first quarter. Arkadios Wealth Advisors now owns 21,008 shares of the company's stock worth $1,188,000 after acquiring an additional 13,893 shares in the last quarter. Spyglass Capital Management LLC bought a new stake in Roblox in the first quarter worth $44,116,000. Finally, Amundi boosted its holdings in Roblox by 83.7% in the first 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 in the last quarter. 94.46% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Oppenheimer assumed coverage on Roblox in a research report on Friday, May 1st. They set an "outperform" rating on the stock. Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research report on Friday, March 27th. Bank of America lowered Roblox from a "buy" rating to a "neutral" rating and set a $48.00 price target on the stock. in a research report on Friday, May 1st. JPMorgan Chase & Co. dropped their price target on Roblox from $100.00 to $75.00 and set a "neutral" rating on the stock in a research report on Friday, February 6th. Finally, TD Cowen upgraded Roblox from a "sell" rating to a "hold" rating and dropped their price target for the company from $54.00 to $49.00 in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus 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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