Roblox (NYSE:RBLX) Trading Down 5.2% – Here’s What Happened

Shares of Roblox Corporation (NYSE:RBLX) traded down 5.2% on Tuesday . The company traded as low as $44.90 and last traded at $45.66. 1,938,404 shares were traded during trading, a decline of 84% from the average session volume of 11,843,800 shares. The stock had previously closed at $48.16.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Wedbush cut Roblox from a “hold” rating to a “neutral” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. lowered their price objective on Roblox from $100.00 to $75.00 and set a “neutral” rating on the stock in a research report on Friday, February 6th. Raymond James Financial cut Roblox from an “outperform” rating to a “market perform” rating in a research report on Friday, May 1st. BTIG Research cut Roblox from a “buy” rating to a “neutral” rating in a report on Friday, May 1st. Finally, Needham & Company LLC initiated coverage on Roblox in a report on Friday, May 1st. They issued a “buy” rating and a $60.00 price target on the stock. One equities research 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 given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $87.07.

Roblox Trading Up 2.7%

The stock has a fifty day moving average of $52.92 and a 200 day moving average of $70.09. 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 company has a market capitalization of $31.47 billion, a PE ratio of -29.66 and a beta of 1.50.

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

Roblox announced that its board has initiated a share buyback program on Tuesday, May 19th that permits the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization permits the company to buy up to 9.5% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other Roblox news, 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 sale, the insider owned 432,738 shares of the company’s stock, valued at $20,079,043.20. The trade was a 1.25% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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. Also, insider Sean Jack Buckley sold 4,744 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $46.36, for a total value of $219,931.84. Following the transaction, the insider directly owned 97,141 shares in the company, valued at approximately $4,503,456.76. This represents a 4.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 183,471 shares of company stock worth $8,930,068. Insiders own 10.05% of the company’s stock.

Hedge Funds Weigh In On Roblox

Several large investors have recently modified their holdings of the stock. National Pension Service increased its position in Roblox by 7.3% during the 3rd quarter. National Pension Service now owns 1,697,820 shares of the company’s stock valued at $235,182,000 after buying an additional 115,096 shares in the last quarter. Cypress Wealth Services LLC acquired a new position in Roblox during the 4th quarter valued at about $2,373,000. Yarbrough Capital LLC increased its position in Roblox by 1,514.5% during the 4th quarter. Yarbrough Capital LLC now owns 57,331 shares of the company’s stock valued at $4,646,000 after buying an additional 53,780 shares in the last quarter. Triglav Investments D.O.O. acquired a new position in Roblox during the 3rd quarter valued at about $3,186,000. Finally, Mirae Asset Global Investments Co. Ltd. increased its position in Roblox by 28.3% during the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 76,590 shares of the company’s stock valued at $10,609,000 after buying an additional 16,915 shares in the last quarter. Institutional investors own 94.46% of the company’s stock.

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.