Roblox (NYSE:RBLX) CFO Sells 17,509 Shares

Roblox Corporation (NYSE:RBLX) CFO Naveen Chopra sold 17,509 shares of the stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $37.96, for a total value of $664,641.64. Following the completion of the transaction, the chief financial officer owned 363,249 shares of the company’s stock, valued at $13,788,932.04. This trade represents a 4.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Roblox Trading Up 0.9%

RBLX traded up $0.33 during trading on Monday, reaching $38.70. The company had a trading volume of 8,331,997 shares, compared to its average volume of 11,929,390. The firm’s 50-day simple moving average is $47.11 and its 200 day simple moving average is $52.57. The company has a debt-to-equity ratio of 7.82, a quick ratio of 0.82 and a current ratio of 0.82. The company has a market cap of $25.93 billion, a price-to-earnings ratio of -27.06 and a beta of 1.46. Roblox Corporation has a 12-month low of $33.88 and a 12-month high of $142.00.

Roblox (NYSE:RBLX) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.26) EPS for the quarter, beating analysts’ consensus estimates of ($0.34) by $0.08. Roblox had a negative net margin of 17.60% and a negative return on equity of 292.85%. The company had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.60 billion. During the same period in the prior year, the firm earned ($0.41) earnings per share. The business’s quarterly revenue was up 8.3% on a year-over-year basis. Equities research analysts anticipate that Roblox Corporation will post -1.39 earnings per share for the current year.

Roblox announced that its board has initiated a share 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 reacquire up to 9.5% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RBLX. California State Teachers Retirement System increased its stake in Roblox by 5,370.1% in the 2nd quarter. California State Teachers Retirement System now owns 49,445,613 shares of the company’s stock valued at $2,688,852,000 after buying an additional 48,541,681 shares during the period. Readystate Asset Management LP lifted its position in Roblox by 685.8% in the 2nd quarter. Readystate Asset Management LP now owns 377,201 shares of the company’s stock worth $20,512,000 after buying an additional 329,201 shares in the last quarter. HB Wealth Management LLC boosted its stake in shares of Roblox by 24.5% during the 2nd quarter. HB Wealth Management LLC now owns 19,542 shares of the company’s stock valued at $1,063,000 after buying an additional 3,844 shares during the period. Saudi Central Bank boosted its stake in shares of Roblox by 91.6% during the 2nd quarter. Saudi Central Bank now owns 41,683 shares of the company’s stock valued at $2,267,000 after buying an additional 19,929 shares during the period. Finally, Angeles Wealth Management LLC acquired a new stake in shares of Roblox during the 2nd quarter valued at $915,000. 94.46% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

RBLX has been the subject of a number of recent analyst reports. Needham & Company LLC decreased their price objective on shares of Roblox from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Friday, July 31st. DA Davidson set a $40.00 target price on shares of Roblox in a research note on Friday, July 31st. HSBC lowered Roblox from a “buy” rating to a “hold” rating and set a $46.00 target price for the company. in a report on Friday, May 1st. Barclays decreased their target price on Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research report on Monday, August 3rd. Finally, Oppenheimer dropped their price target on Roblox from $82.00 to $50.00 and set an “outperform” rating on the stock in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, fifteen have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $60.89.

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.