Roblox (NYSE:RBLX) Insider Sells 5,978 Shares

Key Points

• Roblox insider Mark Reinstra sold 5,978 shares on June 8 at an average price of $41.71, totaling about $249,342. The sale reduced his holdings by 1.38% and was made under a pre-arranged Rule 10b5-1 plan.
• Roblox shares were trading near recent lows, rising slightly to $42.30 on the day, compared with a 52-week range of $40.15 to $150.59. The stock remains well below its 50-day and 200-day moving averages.
• The company beat earnings expectations but missed on revenue in its latest quarter, reporting a smaller-than-expected loss per share while revenue came in below consensus. Roblox also authorized a $3 billion share buyback, signaling management’s confidence in the stock.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 5,978 shares of Roblox stock in a transaction on Monday, June 8th. The stock was sold at an average price of $41.71, for a total transaction of $249,342.38. Following the sale, the insider owned 426,760 shares of the company's stock, valued at $17,800,159.60. The trade was a 1.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

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

• On Thursday, May 21st, Mark Reinstra sold 5,460 shares of Roblox stock. The stock was sold at an average price of $46.40, for a total transaction of $253,344.00.
• 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 transaction 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 transaction of $1,080,754.82.

Roblox Stock Performance

Shares of NYSE:RBLX traded up $0.48 on Monday, hitting $42.30. 9,718,866 shares of the company were exchanged, compared to its average volume of 11,733,387. Roblox Corporation has a 1-year low of $40.15 and a 1-year high of $150.59. The stock's 50 day moving average price is $51.24 and its 200 day moving average price is $67.20. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 2.45. The firm has a market capitalization of $28.41 billion, a P/E ratio of -26.77 and a beta of 1.44.

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

Roblox announced that its board has approved a stock buyback program on Tuesday, May 19th that authorizes the company to buyback $3.00 billion in shares. This buyback authorization authorizes the company to purchase up to 9.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Analysts Set New Price Targets

RBLX has been the subject of a number of research reports. HSBC downgraded shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 target price for the company. in a research report on Friday, May 1st. Roth Mkm set a $65.00 target price on Roblox in a report on Tuesday, May 5th. Jefferies Financial Group lowered Roblox from a "hold" rating to a "hold" rating in a report on Friday, May 1st. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Roblox in a report on Friday, March 27th. Finally, Wedbush lowered Roblox from a "hold" rating to a "neutral" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $87.07.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RBLX. Norges Bank acquired a new stake in shares of Roblox in the fourth quarter valued at about $435,424,000. Vanguard Group Inc. boosted its position in Roblox by 5.6% during the third quarter. Vanguard Group Inc. now owns 62,437,998 shares of the company's stock worth $8,648,911,000 after acquiring an additional 3,284,073 shares during the last quarter. SRS Investment Management LLC acquired a new position in Roblox during the fourth quarter worth about $238,065,000. Amundi boosted its position in Roblox by 83.7% during 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 during the last quarter. Finally, Capital International Investors boosted its position in Roblox by 7.3% during the fourth quarter. Capital International Investors now owns 31,953,301 shares of the company's stock worth $2,589,282,000 after acquiring an additional 2,184,439 shares during the last quarter. Hedge funds and other institutional investors own 94.46% of the company's stock.

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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