Roblox (NYSE:RBLX) Reaches New 52-Week Low Following Insider Selling

Key Points

• Roblox shares hit a new 52-week low on Friday, falling to as low as $41.66 after insider selling, before last trading near $41.88.
• Director Gregory Baszucki sold 16,666 shares on May 5 for about $749,470, trimming his stake by 1.27% under a pre-arranged Rule 10b5-1 plan.
• Analysts have turned more cautious, with multiple firms cutting ratings or price targets; the stock now has a consensus “Hold” rating and a $87.17 average target, well above current levels.

Roblox Corporation (NYSE:RBLX - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Friday following insider selling activity. The company traded as low as $41.66 and last traded at $41.8750, with a volume of 12025701 shares trading hands. The stock had previously closed at $44.78.

Specifically, Director Gregory Baszucki sold 16,666 shares of Roblox stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $44.97, for a total transaction of $749,470.02. Following the completion of the transaction, the director directly owned 1,294,501 shares of the company's stock, valued at approximately $58,213,709.97. The trade was a 1.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. DA Davidson decreased their price objective on shares of Roblox from $65.00 to $47.50 and set a "neutral" rating for the company in a report on Friday, May 1st. Wedbush lowered shares of Roblox from a "hold" rating to a "neutral" rating in a report on Friday, May 1st. BMO Capital Markets reiterated an "outperform" rating on shares of Roblox in a report on Friday, February 6th. HSBC lowered shares of Roblox from a "buy" rating to a "hold" rating and set a $46.00 price objective for the company. in a report on Friday, May 1st. Finally, Wolfe Research assumed coverage on shares of Roblox in a report on Friday, May 1st. They set an "outperform" rating for the company. One analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $87.17.

Roblox Stock Performance

The company has a debt-to-equity ratio of 2.45, a quick ratio of 0.89 and a current ratio of 0.89. The firm has a market cap of $28.12 billion, a P/E ratio of -26.50 and a beta of 1.50. The firm's fifty day moving average price is $58.29 and its 200 day moving average price is $77.59.

Roblox (NYSE:RBLX - Get Free Report) last posted 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. 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 analyst estimates of $1.74 billion. During the same quarter in the previous year, the business posted ($0.32) EPS. The company's quarterly revenue was up 43.4% compared to the same quarter last year. Sell-side analysts expect that Roblox Corporation will post -1.49 EPS for the current fiscal year.

Institutional Investors Weigh In On Roblox

Several large investors have recently modified their holdings of the business. PNC Financial Services Group Inc. raised its holdings in shares of Roblox by 42.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 20,119 shares of the company's stock valued at $1,138,000 after purchasing an additional 5,953 shares in the last quarter. Atlantic Private Wealth LLC bought a new stake in shares of Roblox in the 1st quarter valued at about $35,000. Amova Asset Management Americas Inc. raised its holdings in shares of Roblox by 17.0% in the 1st quarter. Amova Asset Management Americas Inc. now owns 3,238,160 shares of the company's stock valued at $183,247,000 after purchasing an additional 469,379 shares in the last quarter. Florida Financial Advisors LLC raised its holdings in shares of Roblox by 14.2% in the 1st quarter. Florida Financial Advisors LLC now owns 13,130 shares of the company's stock valued at $743,000 after purchasing an additional 1,628 shares in the last quarter. Finally, Allen Investment Management LLC raised its holdings in shares of Roblox by 2.2% in the 1st quarter. Allen Investment Management LLC now owns 216,934 shares of the company's stock valued at $12,270,000 after purchasing an additional 4,695 shares in the last quarter. 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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