Key Points
- Roblox insider Mark Reinstra sold 4,512 shares on July 6 at an average price of $57.34, totaling about $258,718. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- The company continues to face investor scrutiny amid a pending securities class action tied to concerns about user growth and the impact of age-verification changes. Several law firms issued procedural notices about lead-plaintiff deadlines.
- Wall Street remains cautiously optimistic overall, with analysts assigning Roblox a consensus rating of “Moderate Buy” and an average price target of $85.48. However, recent ratings and target cuts show some mixed sentiment.
Roblox Corporation (NYSE:RBLX - Get Free Report) insider Mark Reinstra sold 4,512 shares of the business's stock in a transaction on Monday, July 6th. The shares were sold at an average price of $57.34, for a total transaction of $258,718.08. Following the completion of the sale, the insider owned 422,248 shares in the company, valued at $24,211,700.32. This represents a 1.06% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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 Monday, June 8th, Mark Reinstra sold 5,978 shares of Roblox stock. The stock was sold at an average price of $41.71, for a total transaction of $249,342.38.
- 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 shares were sold at an average price of $57.94, for a total transaction of $1,080,754.82.
Roblox Stock Down 0.5%
Shares of RBLX opened at $56.73 on Wednesday. The company has a market capitalization of $38.10 billion, a P/E ratio of -35.91 and a beta of 1.41. Roblox Corporation has a one year low of $40.15 and a one year high of $150.59. The business's 50 day simple moving average is $47.69 and its 200-day simple moving average is $60.43. The company has a debt-to-equity ratio of 2.45, a current ratio of 0.89 and a quick ratio of 0.89.
Roblox (NYSE:RBLX - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported ($0.35) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.06. The firm had revenue of $1.44 billion during the quarter, compared to the consensus estimate of $1.74 billion. Roblox had a negative return on equity of 277.69% and a negative net margin of 20.69%.The business's revenue for the quarter was up 43.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.32) EPS. As a group, sell-side analysts predict that Roblox Corporation will post -1.39 EPS for the current fiscal year.
Roblox announced that its Board of Directors has authorized a share buyback plan on Tuesday, May 19th that allows the company to repurchase $3.00 billion in shares. This repurchase authorization allows the company to purchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board believes its stock is undervalued.
Key Roblox News
Here are the key news stories impacting Roblox this week:
- Positive Sentiment: No clearly positive company-specific developments were reported in the latest batch of articles.
- Neutral Sentiment: Several law firms, including Faruqi & Faruqi, Bernstein Liebhard, Schall, DJS Law Group, Rosen, Robbins LLP, and Robbins Geller, issued procedural notices reminding investors of the pending securities class action and deadline for lead-plaintiff applications. Article Title
- Neutral Sentiment: An insider filing showed Roblox director Mark Reinstra sold 4,512 shares under a pre-arranged 10b5-1 trading plan, a transaction that may draw investor attention but was not presented as unusual. Article Title
- Negative Sentiment: Hagens Berman said the lawsuit centers on Roblox’s April 30 Q1 report, which allegedly revealed a sharp sequential decline in daily active users amid the company’s age-verification rollout, fueling concerns about growth and contributing to a major market-cap loss. Article Title
Institutional Inflows and Outflows
Several hedge funds have recently modified their holdings of the business. Sunbelt Securities Inc. grew its position in shares of Roblox by 58.7% during the 3rd quarter. Sunbelt Securities Inc. now owns 284 shares of the company's stock worth $39,000 after buying an additional 105 shares during the period. Horizon Investments LLC lifted its holdings in Roblox by 2,636.4% in the third quarter. Horizon Investments LLC now owns 301 shares of the company's stock valued at $42,000 after buying an additional 290 shares during the period. Reyes Financial Architecture Inc. boosted its stake in Roblox by 164.4% in the fourth quarter. Reyes Financial Architecture Inc. now owns 312 shares of the company's stock valued at $25,000 after acquiring an additional 194 shares during the last quarter. Fideuram Asset Management Ireland dac bought a new position in Roblox in the fourth quarter valued at approximately $27,000. Finally, GW&K Investment Management LLC grew its holdings 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 acquiring an additional 161 shares during the period. Institutional investors own 94.46% of the company's stock.
Wall Street Analyst Weigh In
A number of equities research analysts have commented on the stock. Oppenheimer initiated coverage on shares of Roblox in a report on Friday, May 1st. They set an "outperform" rating on the stock. Bank of America lowered shares of Roblox from a "buy" rating to a "neutral" rating and set a $48.00 target price on the stock. in a research report on Friday, May 1st. BMO Capital Markets raised shares of Roblox from an "outperform" rating to an "outperform" rating in a research note on Monday, June 29th. Seaport Research Partners lowered shares of Roblox to a "neutral" rating in a report on Monday, June 29th. Finally, Canaccord Genuity Group dropped their price objective on shares of Roblox from $140.00 to $80.00 and set a "buy" rating for the company in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $85.48.
Get Our Latest Analysis on Roblox
Roblox Company Profile
(
Get Free Report)
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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