Roblox (NYSE:RBLX) Insider Sells $782,212.00 in Stock

Key Points

• Roblox insider Mark Reinstra sold shares on May 20, offloading 17,275 shares at an average price of $45.28 for a total of $782,212. The sale was made under a pre-arranged Rule 10b5-1 plan to cover tax withholding from vested equity awards.
• Roblox approved a $3 billion share buyback on May 19, allowing repurchases of up to 9.5% of outstanding shares. Such programs are often viewed as a sign that management believes the stock may be undervalued.
• The company recently reported better-than-expected EPS of -$0.35 for the quarter, though revenue of $1.44 billion fell short of estimates. Analysts currently have a Hold consensus on the stock with an average target price of $87.07.

Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 17,275 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $45.28, for a total value of $782,212.00. Following the completion of the sale, the insider owned 438,198 shares in the company, valued at approximately $19,841,605.44. This represents a 3.79% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 Thursday, May 21st, Mark Reinstra sold 5,460 shares of Roblox stock. The shares were sold at an average price of $46.40, for a total value of $253,344.00.
• 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 Price Performance

NYSE RBLX traded up $2.09 during trading hours on Friday, reaching $48.23. 10,126,707 shares of the company's stock were exchanged, compared to its average volume of 11,949,403. The stock has a market cap of $32.39 billion, a PE 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 has a fifty day moving average of $53.81 and a 200-day moving average of $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 released its quarterly earnings results on Thursday, April 30th. The company reported ($0.35) EPS for the quarter, topping analysts' consensus estimates of ($0.41) by $0.06. The business 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%.Roblox's revenue for the quarter was up 43.4% on a year-over-year basis. During the same period in the prior year, the company earned ($0.32) EPS. On average, equities research analysts predict 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 share buyback plan on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to purchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board believes its shares are undervalued.

Analyst Ratings Changes

Several research analysts have recently issued reports on RBLX shares. UBS Group reduced their price target on Roblox from $74.00 to $49.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Benchmark restated a "hold" rating on shares of Roblox in a research report on Monday, February 2nd. Weiss Ratings restated a "sell (e+)" rating on shares of Roblox in a research report on Friday, March 27th. Jefferies Financial Group lowered Roblox from a "hold" rating to a "hold" rating in a research report on Friday, May 1st. Finally, The Goldman Sachs Group reduced their price target on Roblox from $125.00 to $65.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $87.07.

Institutional Trading of Roblox

Hedge funds have recently added to or reduced their stakes in the business. Reyes Financial Architecture Inc. raised its stake in Roblox by 164.4% during the 4th quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock worth $25,000 after buying an additional 194 shares during the period. Hanson & Doremus Investment Management acquired a new stake in Roblox during the 1st quarter worth $25,000. Pilgrim Partners Asia Pte Ltd acquired a new stake in Roblox during the 3rd quarter worth $26,000. Fideuram Asset Management Ireland dac acquired a new stake in Roblox during the 4th quarter worth $27,000. Finally, GW&K Investment Management LLC raised its stake in Roblox by 76.3% during the 4th quarter. GW&K Investment Management LLC now owns 372 shares of the company's stock worth $30,000 after buying an additional 161 shares during the period. Institutional investors and hedge funds 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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